will beneficiaries on benefits

NAR

TheBottomLine wrote: »

Should we just stand by and watch people defraud the taxpayer? This must be a wind-up.

Read what the OP posted - "and want to do what I possibly can to legally lessen the detrimental financial impact on my siblings benefits. "

How is this a request for help to commit fraud? An apology to the OP is certainly deserved for this slur!!

Oldernotwiser

NAR wrote: »

No I'm not, can't you read? :mad: I'm suggesting they REFUSE the money - very different!
Deprivation of Capital applies when money is received and then given away/spent to avoid losing benefits.

If you refuse money available to you then you will assessed as if you actually had it. This is also the case for the few students entitled to claim means tested benefits; they are assessed on their student loan, whether they take it out or not.

Oldernotwiser

NAR wrote: »

Read what the OP posted - "and want to do what I possibly can to legally lessen the detrimental financial impact on my siblings benefits. "

How is this a request for help to commit fraud? An apology to the OP is certainly deserved for this slur!!

I don't think that the OP is necessarily trying to defraud the system but your advice certainly is!

NAR

Fuelmizer, I have sent you a PM :cool:

Savvy_Sue

It is possible to execute a Deed of Variation if all the beneficiaries agree: this enables you to change the will including setting up a trust. I would suggest finding a STEP qualified solicitor to talk through the implications. And then check with DWP whether that would be seen as deprivation of capital, although that might not give you a definitive answer. In other words, you might do that, and then find that DWP did see it as deprivation.

However, if some of the money could be spent effectively quite quickly, eg to put in an adapted bathroom or to move to a more suitable property, then I believe that's 'reasonable', and if it brings the savings below the limit, the benefits are safe, AND the beneficiaries are in a better position than they were before.

Indie_Kid

Savvy_Sue wrote: »

However, if some of the money could be spent effectively quite quickly, eg to put in an adapted bathroom or to move to a more suitable property, then I believe that's 'reasonable', and if it brings the savings below the limit, the benefits are safe, AND the beneficiaries are in a better position than they were before.

If the beneficiaries do this, (or someone does it on their behalf) they need to keep all receipts.

Oldernotwiser

NAR wrote: »

Fuelmizer, I have sent you a PM :cool:

Which I hope he will take with a pinch of salt.

I_know_my_ABC_and_my_CMYK

fuelmizer wrote: »

What benefits?
It does'nt matter which benefits, they are on them for the rest of their days, the monies coming to them is what is due to them, my mother worked hard to bring a family up on her own going without to see her children did not (and I don't mean luxuries)!
This money will have to last them literally to their graves, which could be many years from now.

only constructive comments welcome.

The benefits actually do matter, if your siblings are on disability benefits then they will not lose this as it is none means tested, but if it is income support then the money they receive will prob put them over the savings threshold so they will lose this.

hope this helps.

Oldernotwiser

A useful link on the subject

http://www.ecadviser.com/xq/asp/sid.0/articleid.8012CD17-AFFB-491C-9ECE-FCA40E62D994/eTitle.Inheritance_Avoiding_benefit_reductions/qx/display.htm

Particularly relevant is the following;

"As we have already said, any attempt to disclaim the inheritance or execute a deed of variation is likely to be looked on by the benefits agency as a deprivation of benefit. The benefits claimant will be treated as still owning that money and will not receive their benefits. There are some useful disregards that a benefits claimant in receipt of an inheritance can legitimately take advantage of. It must be stressed that the use of these disregards must be reasonable in order to avoid suspicion from the benefits agency. "

seven-day-weekend

So can you tell us which benefits they are on? Then we can advise you further. Certain sickness/disability Benefits are not means-tested and therefore any inheritance won't have any effect on them.

Means-tested benefits, however, will be affected after £6000 and stopped altogether after £16000.