Inheritance Gifts while on Benefits

bestpud

seven-day-weekend wrote: »

If I needed to claim benefits and was entitled to them then I would claim.

The point is, if someone inherits £100k, then they are NOT entitled to means-tested benefits, although of course they can keep things like sickness and disability Benefits, which are not means-tested.

Yes of course it's a pain in the backside to have to spend your inheritance on things like rent and Council Tax, but means-tested Benefits are there for those who do not have the means to pay - not for those with £100k sitting in the bank.

I would too.

I was asking the OP what they would do with the money if she had to claim benefits, given that's the reason it's been given to her iyswim?

Would she pass it back to her parents to secure entitlement for themselves or find another family member who ( of course) was the true beneficiary?

seven-day-weekend

bestpud wrote: »

I would too.

I was asking the OP what they would do with the money if she had to claim benefits, given that's the reason it's been given to her iyswim?

Would he/ she pass it back to her parents to secure entitlement for themselves or find another family member who ( of course) was the true beneficiary?

Ah.... understand now!;)

Too early in the morning before!

mcpcoles

Firstly, thank you to all who have bothered to read my question correctly and offer constructive advice.

FYI - This is by no means an attempt to defraud any agency and the reason for posting this question was to get a general opinion from a variety of people before approaching the solicitor involved and relying on his every word without getting any other opinions be they professional or non professional.

So if I understand this correctly,

I receive 100K as promised

My mother gets 10K which would stop her benefits until she falls below the threshold, but the agency would class the 100K she has passed onto me as her money even if it is proved that it is not some kind of attempt to defraud the agency ( provide bank statements etc??) So in reality I cannot have my inheritance without paying for my parents living costs and they would have no money to pay their own after the 10K has been used on living expenses.

As a message to the cynical amongst you about people on benefits who should not be if they have money - I agree wholeheartedly.

However in this case my parents owned a very successful business but due to the health problems the business and house had to be sold to pay for treatment that was not available on the NHS which cost in excess of £400,000. I personally helped with over 150K so it is not a case of me taking money from my parents inheritance and leaving them with nothing!

Once again thank you for the constructive comments.

Mojisola

mcpcoles wrote: »

I looked after my grandmother for the past 10 years and it was her intention that I should receive 100K of this money which she had discussed with my mother although this was by word and not written into the will.

This is the problem - it's what written in the will that counts. Legally, the money now belongs to your mother and she won't be able to receive means-tested benefits.

It's a lesson for us all to make sure our wills say exactly what we want them to say. If circumstances have changed, change the will.

Jowo_2

Mojisola wrote: »

This is the problem - it's what written in the will that counts. Legally, the money now belongs to your mother and she won't be able to receive means-tested benefits.

It's a lesson for us all to make sure our wills say exactly what we want them to say. If circumstances have changed, change the will.

The saying is "a verbal agreement is worth the paper its written on".

I don't doubt that the split of money was agreed by all parties but it's the failure to prove this with evidence (i.e. the will) that is causing the OPs parents problems, not the benefit system which obviously is structured in a sensible way so those on means tested benefits that receive large windfalls are expected to start paying towards their own living costs instead of the public purse.

flashnazia

AnxiousMum wrote: »

What I don't understand is......if somebody claiming benefits of ANY kind inherits a sum of money that enables them to enjoy life a little, relieve some of the stress in their life regarding finances etc., why they are wondering how it will affect their benefits? Surely, being self sufficient and being able to get off of benefits is a good thing.....

I'm not saying this about the OP but generally there is an anxiety about 'coming into money' when on benefits because of the stupid mindset that has occurred about the receipt of 'free' money.

Small section of society will do almost anything to keep this 'free' money coming in.

andyandflo

seven-day-weekend wrote: »

People ARE giving proper advice. It's not a matter of SHOULD lose the Benefits. If they inherit £100k then they WILL lose the Benefits. Even if they then give it away to whoever it was 'really' intended for, although the deceased person never said this in their will..

I too like Anxious Mum above have never understood why someone is not delighted at their good fortune and the chance to be off means-tested Benefits, if only for a while. However, that might mean they have to pay their own Council Tax.

Uh!!

As I have said, and I am not certain that it will be possible with Benefit law, it certainly is correct for Financial law, that with a Deed of Variation, that it will take precedence over the original will and the £100,000 will be paid direct to the daughter!
In which case the parent will receive £10,000 only. The parents have not given any money away, the will was altered after death in a correct and legal manner before any distribution took place.
Once the Deed has been signed and verified, the parents lose all rights to the extra £100,000. They can't give away something that they aren't entitled to can they?

It is no different as to when you contest a will and receive an inheritance that was not stated in the original will!!

It certainly is well worth looking into, as if it is the case, the parents can continue to claim benefits albeit after disclosing an inheritance of £10,000.

andyandflo

bestpud wrote: »

What would happen if you suddenly found yourself needing to claim benefits? :cool:

I'm always shocked how bloody calculating people can be when a family member passes away and there is an inheritance!

Unfortunately that's life!!

I was the administrator of a will a few years back, the deceased left no will and the live in housekeeper tried to claim the entire estate. She was very wealthy in her own right beforehand.

To stop a court case the beneficiaries had to 'buy her off' with £50,000 which was cheaper than going to the High Court!

andyandflo

Oldernotwiser wrote: »

Deeds of variation work for taxation purposes but thy don't in the case of benefits and deprivation of capital. That's why nobody has recommended this strategy.

From the Elderly Client Advisor website -

"Although the deed of variation is a convenient way of sorting matters out for clients who never quite got round to making tax-efficient wills in their lifetime, it is not a particularly useful method of dealing with benefits problems. The reason for that is that a beneficiary who signs a deed of variation is sending their share of an estate to another individual or to a trust and could, quite rightly, be treated by the benefits agency as having committed a deprivation of benefit. That would mean that the benefits agency could assess them as still owning the money that they have given away under the deed and reduce or even stop their benefits accordingly. "

You are not only a crook but also a singularly ill informed one.

Read my posting - I said that I wasn't sure - go and see a solicitor.

Damn good advice I think.

I would still stand by that advice as the wording in your article is 'could'. That implies that not in all cases. Why not find out what those other cases/circumstances are. Nothing to lose, everything to gain.

Maybe it all comes down to the intention to create the Deed of Variation
. I presume you would say that it was to claim more benefits. The poster would probably say that it has nothing to do with that, it was her grandmother's wish which unfortunately was not entered as a codicil to the will, that the grand daughter receives the £100,000 as per the OP initial question - read it!

Who would you believe - silly question isn't it?
Would you please explain why you think I am a crook?
Is it not better to manage your affairs in such a way that legally, you gain a financial advantage even though that may include benefits?

andyandflo

mcpcoles wrote: »

Hi All

My parents who are disabled survive on benefits that include housing benefit and disability. My grandmother has recently passed away and left 110K in her will of which my mother is the sole beneficary.

I looked after my grandmother for the past 10 years and it was her intention that I should receive 100K of this money which she had discussed with my mother although this was by word and not written into the will.

My mother is fine with this as this was my grandmothers wish but she is worried that her benefits will be stopped when the money is paid into her bank account.

I was under the impression that my mother gives me a cheque for the 100K and she informs the benefits agency that she has inherited 10K but she thinks that they will assume she has the whole amount still and that she has just gone and blown it to avoid declaring the whole amount.

Can anyone clarify this as this is causing her a great deal of worry.

Thanks

Hi
Personally I would be challenging the will in court, by virtue of what was said verbally.

You might find that the Executor would want to settle out of court - hint hint go see a solicitor!