inheritance query

pigletb00

I have recently inherited approximately £95,000. Half of this amount I am looking after for my brother who is disabled and is on benefits (including disablity living allowance). He will be able to use the interest from his share for holidays and 'extras'. Later on he will be able to supplement his state pension and use the money if needed. His share is in my name as my parents were concerned that he would have to come off benefits if he inherited it directly. I am considering putting both his share and mine into fixed rate interest bonds. I have also considered a trust fund for my brother. In addition to this money, we are both beneficiaries of another relative's will and we will be receiving between £35,000 and £40,000 each. My brother will have this in his own name. I earn £27,000 per annum. What are the tax implications for me and what are my best options? Will my brother have to come off benefits when he receives the inheritance from our relative's estate? My brother is unable to manage his own finances. I have Power of Attorney for him although I have not used this.

pigletb00

greenface

really and truely seek proffesional help from benifits agencies or c.a.b type of place try to avoid putting any money into your brothers name until totally have to DLA and IS have different levels for different benifit changes.:beer: good luck:beer:

RayWolfe

I suspect that what you are doing is exceedingly dodgy. Get professional advice immediately.
Benefits are there for people who need them.

opinions4u

Get professional legal advice.

It may be possible to retrospectively change wills to draw up a trust fund for your brother that can legally protect his benefit entitlement.

You need to understand the cost of doing this and the cost of not doing this before you can make your final decision.

sloughflint

Excellent suggestion from Opinions4U.

Is your brother able to sign documents? If not hopefully you might be able to sign under POA as you are not an interested party in those funds despite being a beneficiary of the Will.Speak to someone who knows what they are talking about:

http://www.step.org/

If you are unable to do what opinions4u suggested, consider the implications on your brother if you predeceased him or divorced (if married) by keeping his share in your name.

pigletb00 wrote: »

I earn £27,000 per annum. What are the tax implications for me

As for you, you'll just be taxed on the generated interest on your inheritance.

Baggysdad

This has the potential to be a right mess.

There are so many issues it is impossible to give any sort of advice here.

Really what should have happened is that the Will should have contained a discretionary trust for your brothers inheritance. Who wrote the Will? Was it DIY or a solicitor? If the latter, there may be a case for negligence.

And the same with the other relatives Will - if they are still alive, they should amend their Will - PDQ. If that relative is not alive and if there isn't a discretionary trust in their Will, again there may be another case for negligence.

In either case, there may be a possibility to vary either or both Wills post death so that your brothers respective inheritances are held in a trust for him. Throw around a few accusations of negligence and you'll probably get the cost of the work funded by someone for you!!

Who administered the estate - was it a solicitor? If so there may be another case for negligence.

Get yourself to a solicitor who specialises in this type of work. The link posted by Sloughflint is a good start. DON'T go to any old High Street solicitor.

B