inheritence and benefits

viktory

Arg wrote: »

Perhaps because the vast majority of responses to them are bickering or unhelpful with a few better posts inbetween.

The only decent response is that it is not possible to spend/hide/give away money in order to continue claiming benefits - and these are the responses I have seen.

Arg

But it is possible to use the money wisely and not be penalised by the DWP is it not?

No suprise to see the usual cretins thank your post.

Oldernotwiser

Arg wrote: »

But it is possible to use the money wisely and not be penalised by the DWP is it not?

No suprise to see the usual cretins thank your post.

If someone were asking whether they could make adaptations to their home to make living with a disability easier (just as an example), they would (and do) get a very different response than when people ask about giving the money away or hiding it!

AnxiousMum

Arg wrote: »

But it is possible to use the money wisely and not be penalised by the DWP is it not?

No suprise to see the usual cretins thank your post.

I guess we could just ignore the fact that the people posting (well, hopefully genuinely) are actually looking for the advice that they are asking. I guess if they are looking for answers along the lines of 'oh no probs....go spend all your money, live the high life, and benefits will be sitting waiting for you when you're done', then they'd be quite happy with the responses, you wouldn't refer to those responding as cretins, but the OP would be in for a hell of a time when the time came to reclaim wouldn't they?

If you gain an inheritance or other money windfall, you are then in a position to provide for yourself - no need for the benefits to kick in. Benefits are there for a reason - and it's not to allow people to live off the back of the state while using 'their own' money for the extras and luxuries.

Now where's that post that all us 'cretins' are supposed to be thanking....must do my bit

healy

Arg wrote: »

But it is possible to use the money wisely and not be penalised by the DWP is it not?

No suprise to see the usual cretins thank your post.

If you do not like the thank yous on this forum perhaps it would be better to go elsewhere.

I do not see the need for childish name calling.

Kaz2008

Yes you are allowed to have 6k in total 'Capital'- savings/investments/bank accounts etc before benefits are reduced and then anything over 16k they stop all together. However it depends on the type of JSA he is claiming. If it is Income Based then his JSA and HB will stop straightaway. If it is Contributions based then his HB will stop straightaway then his JSA will stop when his NI conts 'run out' to a maximum of 6 months in total.

As other people have said it is classed as 'Deprivation of Capital' to apply once all the money has been spent/given away and he must be prepared for the DWP/Housing Benefits asking for receipts to show where the majority of the money has gone. If they are not satisfied then as a PP said it will be classed as 'notional capital' and he will be classed as still having the money. Benefits are there to help people in need and now your friend has the means to support himself he will be expected to do just this.

zagfles

I did hear of a case where someone on benefits was initially due an inheritance but the beneficiaries got together and amended the will to pass her share directly to her (grown up) children who weren't on benefits. Apparently a will can be amended if all the beneficiaries agree and they are all of the opinion that it the new will would have better reflected the wishes of the deceased, quite often it's done to account for inheritance tax changes etc.

Whether the DWP ever got to know or what they would/could have done about it if they had, I don't know?

paddedjohn

There's a hell of a lot of people dieing lately!

thorsoak

bigjluk wrote: »

my friends just inherited 20k,he is on benefits of jsa,and part of his rent paid.he has been told if he has 8k or more in savings they will stop benefits,is this true,and what can he do to avoid this happening(apart from getting a job,of which he is trying,but lives in a extremely high unemployment area.)

how wonderful for your friend! He is very lucky indeed.

£20k is the equivalent of a year's good salary - and he will pay tax upon this sum if he invests it - although of course he will need to use it to cover his daily living expenses as he will not be entitled to benefits any more - and why should he - he is now a man of independant means!

I would suggest that he looks around at what he would want to be doing in say 5 years time - and then use this money (which is an unexpected bonus) to fund his journey to whatever point that may be - change of career, change of location (especially if as you say he is in a high unemployment area).

My advice would be to use this money carefully as the key to his future - independent of DWP and everybody else.

Oldernotwiser

paddedjohn wrote: »

There's a hell of a lot of people dieing lately!

Winter's tough on the elderly.