Estate Inheritance and claiming income support

jiwastar

My dear grandmother passed away on the 5th of October. My mother arranged for a will to be done as the old one was lost. However the will was only written as a draft and never finalized before my grandmothers death. A new will has been created by our solicitor and has my grandmothers wishes stating everything is to be divided in 3 ways. My mother, myself and my younger brother. For the record, my mother is on income support and has her own council flat. My brother and I live at my grandmothers house and have done so for all our lives.

Our solicitor has said that as everything has defaulted to my mother she cannot give the property away to my brother and I as this would be deemed as deprivation of assets (fraud). We have finally recieved all documents to not be hit by inheritance tax and will apply for probate tomorrow.

In the meantime my mother is worried sick that

a.) She will lose her income support
b.) She will lose her council flat

From what I have read and gathered is that if we were to keep the house then our mother would lose her council flat, but still have her benefits.

But if we were to sell the house would she still keep her council flat and not recieve any housing benefit, council tax benefit etc...

Finally, ideally we would like to keep the house but if this creates to many issues then we would sell. Any advice is much appreciated.

Thank you

tigtag02

She wont be turfed out of her home

However, if she now has money why would she need to claim benefits?

jiwastar

At the moment we have not sold the house my brother and I are still living in it. Ideally we would not want to sell. The probate is still not complete yet too.

tigtag02

Has your grandmother been classed as having a will or dying intestate?

I cant imagine anything will happen until probate has been granted but I would check with your solicitor.

Is there only the house that forms the estate?

Oldernotwiser

jiwastar wrote: »

At the moment we have not sold the house my brother and I are still living in it. Ideally we would not want to sell. The probate is still not complete yet too.

So, are you planning to buy or rent it from her? In either case, the money will enable your mother to come off benefits.

jiwastar

All my grandmother left was the house and according to her bank there is an "envelope" waiting for my mother once probate has cleared. I am not sure if my Gran had any bonds etc... what do you think the "envelope" could have in?

Does my mother need to inform DWP now that her mother has died and that probate is in process? Or should she wait until that is complete? Our solicitor has done a new will stating that the property is split 3 ways. So as the will was done after my granma died, that to me sounds like dying intestate.

My mother seriously just wants my brother and I to have the house. If we do keep the house and my brother and I stay in it, how will this effect our mother? Will she still keep her income support, council flat and benefits?

nearlyrich

Please can you explain why the taxpayer (that's me and many like me) should pay tax so your mum can claim IS when she has an asset that she can sell? Even if she only got a third which seems to be what your grandmother wanted, or what you think she wanted. she would still almost definately be over the asset/savings limit for IS.

IS is for people who have no other means of support, your mum legally owns a house which can be sold or she can rent it to you and your brother and live off that income.

I understand where you are coming from but you have to see it from the point of view of the people who pay tax.

tigtag02

How can a will be made after someone has died :huh:

Macro_3

tigtag02 wrote: »

How can a will be made after someone has died :huh:

It sounds like a deed of variation.

Either way OP, your mother could well be considered to have deprived herself of assets if she gives any part of the full inheritance to you - and would in that case lose entitlement to all means tested benefits for many years to come.

tanith

I read something about inheritance the other day it said that you don't have to accept an inheritance , not sure if that is correct as I don't remember where I read it but if its true couldn't she just refuse to accept the house and it would pass to her children? Someone will probably shoot me down in flames...:rotfl:

[Deleted User]

afaik it cant be,i suspect the OP is getting confused and that all the estate will go to his mother as being the surviving child(so to speak)