Inheritance

Francesanne

Don't know where he stands regarding his benefits but doubt whether he'd get a mortgage if he's not working. It's really tough getting a mortgage and you need a large deposit and a job in these hard times. Would be worried about him buying a property (if possible) and having trouble keeping up with repayments. He needs to get some expert help as already advised.

Kimitatsu

I have to agree with Voyager - your friend needs specialist help as this is quite technically complicated. He may well be able to get a free half hour with a solicitor in a legal aid partnership or Shelter are the best people to speak to.

laurel7172

Sometimes it is possible to alter a will, with the agreement of the beneficiaries.

If the will could be altered so that the two other siblings receive cash, but the executors buy your friend a small flat on completion of the sale of the family home, that might avoid the cash-hanging-around problem.

I don't see this as deliberate deprivation of assets, as, presumably, he won't get housing benefit if he's living in his own mortgage-free flat. There's no guarantee that the benefits office would see it that way, though.

Kimitatsu

laurel7172 wrote: »

Sometimes it is possible to alter a will, with the agreement of the beneficiaries.

If the will could be altered so that the two other siblings receive cash, but the executors buy your friend a small flat on completion of the sale of the family home, that might avoid the cash-hanging-around problem.

I don't see this as deliberate deprivation of assets, as, presumably, he won't get housing benefit if he's living in his own mortgage-free flat. There's no guarantee that the benefits office would see it that way, though.

If you do this though you would have to have the agreement of all the beneficiaries and the flat would have to be bought and managed as a family trust I think. This is why it needs legal advice.

Oldernotwiser

Francesanne wrote: »

Don't know where he stands regarding his benefits but doubt whether he'd get a mortgage if he's not working. It's really tough getting a mortgage and you need a large deposit and a job in these hard times. Would be worried about him buying a property (if possible) and having trouble keeping up with repayments. He needs to get some expert help as already advised.

There's been no mention of mortgages; the OP said "This will possibly enable him to buy a small flat (approx £50,000) ".

Macro_3

laurel7172 wrote: »

Sometimes it is possible to alter a will, with the agreement of the beneficiaries.

If the will could be altered so that the two other siblings receive cash, but the executors buy your friend a small flat on completion of the sale of the family home, that might avoid the cash-hanging-around problem.

I don't see this as deliberate deprivation of assets, as, presumably, he won't get housing benefit if he's living in his own mortgage-free flat. There's no guarantee that the benefits office would see it that way, though.

Of course it's deprivation - the sole purpose of the deed of variation would be to protect his entitlement to benefits. Using a deed of variation is specifically mentioned in the decision makers manual as possible deprivation.

That said I actually think this is quite simple. He is living in the property at the present time, and when his mother passes away he will presumably continue to do so whilst the house is marketed:

- When his mother passes away, the part-share of the house will not actually belong to him until he 'receives' it.
- When probate is granted and the part-share of the house is his, the value of the capital will be disregarded as he is living in the property.
- When the house is sold, he will receive his share which can be disregarded for up to 26 weeks as it is the proceeds of the sale of his former home, so long as he states his intention to buy another property with it.

The cash inheritance and the prospect of trying to buy a flat with only 50k deposit and benefit income is more troubling.

Oldernotwiser

Macro wrote: »

The cash inheritance and the prospect of trying to buy a flat with only 50k deposit and benefit income is more troubling.

Am I the only one who has read what the OP has written and assumed that he's hoping to buy a small flat with his share? There are plenty of places in the UK where this would be perfectly possible!

Macro_3

Oldernotwiser wrote: »

Am I the only one who has read what the OP has written and assumed that he's hoping to buy a small flat with his share? There are plenty of places in the UK where this would be perfectly possible!

Are there? I need to move!

TOBRUK

Oldernotwiser is right, there are many places you could get a decent one bedroom flat for 50,000.

Frogletina

Macro wrote: »

Of course it's deprivation - the sole purpose of the deed of variation would be to protect his entitlement to benefits. Using a deed of variation is specifically mentioned in the decision makers manual as possible deprivation.

That said I actually think this is quite simple. He is living in the property at the present time, and when his mother passes away he will presumably continue to do so whilst the house is marketed:

- When his mother passes away, the part-share of the house will not actually belong to him until he 'receives' it.
- When probate is granted and the part-share of the house is his, the value of the capital will be disregarded as he is living in the property.
- When the house is sold, he will receive his share which can be disregarded for up to 26 weeks as it is the proceeds of the sale of his former home, so long as he states his intention to buy another property with it.

The cash inheritance and the prospect of trying to buy a flat with only 50k deposit and benefit income is more troubling.

I have advised that his mother has already died. He has told the benefits office today and once he has the money then a decision maker will make a decision. This leaves him in limbo as to what his choices are. He obviously wants to know whether to look for a place to rent or buy (without a mortgage) as once the house is sold he needs a place to live, but it seems he will have to rent at least initially as he cannot afford to buy a property if the decision is that it would be deprivation of capital.