inheritance................do we blow the lot

krisskross

Just to give another point of view.

We have a fairly modest amount of savings which we use to supplement out pensions and pay for our treats and luxuries. These savings give us freedom to do what we like a but on the other hand preclude us claiming any means tested benefits. We wouldn't have it any other way. So far we have enjoyed approx. 10 years of retirement and hope our savings hold out as long as we need them.

I have never understood why people do not think it right to be expected to use their own cash rather than the taxpayers when they are able to.

So to the OP I would say spend what you want to, but do not give away money that you may well need for general living expenses in the future. As a taxpayer I do object to people who live the life of Riley spending money frivolously or gifting it away then expect taxpayers to fund them when it is all gone. Should your inheritance be treated any differently to our lifetime savings?

Emanef

A few things to consider, I guess.
If you did blow the lot and re-claimed pension credits, they would have to decide whether or not you deprived yourself of the money for the purpose of claiming benefit. If you were getting it before, and it stopped because of the capital, it’d be very hard for you to argue that it was not for the purposes of obtaining benefit, and then you’re likely to be treated as still having it (notional capital).
Alternatively, you may well be able to persuade the Pension Service that the reason you spent the money was because of your illnesses, and you wanted to enjoy the remainder of your life, and that it was not to enable you to get benefit.
Another thing to consider it the moral issue. Benefits are there to help people who are entitled to it and need the help, and the burden on the state at the moment is already far too high. Would you not feel it wrong to take advantage of the system in such a way? The more people to de-fraud the system, the more tax payers have to pay and the less people in genuine need get. Benefit fraud is huge already, and I can’t see how anyone can recommend it. From what you’ve said, you already get a lot of support from the state, so how would you feel if it was someone else suggesting the same and it meant that you may not get so much help at a later time?
You’ve not (that I can see) said the amount, but it might be worth looking on the pension service website to see if they have a calculator to see if you’d still qualify. If it’s a huge amount, personally I think I’d just enjoy the money in a sensible but fun way, and not even think about getting rid of it for benefit purposes. Seems a strange thing to do to me, a very negative way of enjoying the later years of life! If, when the money has gone, you’ve had a good time, deal with it then!