Inheritance + CT/HB Pension Credit

rachyroundbum

Hi,

My dad is due to recieve an unknown sum in inheritance (it's currently unknown because the debt of the estate is still being paid). He lives with my mum, who works part time, and they are in receipt of Council Tax benefit, Housing Benefit and pension credit.

They are under the impression that the Government will FORCE them to spend whatever my dad receives in inheritance on council tax and housing benefit, with no room for him to "enjoy" the money.

Is this true? Will they have no control over what they spend? After the death of his mother, and ongoing illness on his side, he basically just wants to freedom to book a mediterranean cruise, buy a decent second hand car and buy half a caravan with his sister (an absolute total cost of £15,000) and a new fridge.

I have read online that there is a loophole - basically because he didn't know he was going to receive that sum of money it would be treated the same as a lottery win???

Any clarification is appreciated, I hope I have supplied enough information for those in the know.

Edale

Is it fair that someone who worked hard and was careful with their money is forced to spend their savings on council tax and rent whilst your father gets it paid by the state?

Whiteknight

rachyroundbum wrote: »

Hi,

My dad is due to recieve an unknown sum in inheritance (it's currently unknown because the debt of the estate is still being paid). He lives with my mum, who works part time, and they are in receipt of Council Tax benefit, Housing Benefit and pension credit.

They are under the impression that the Government will FORCE them to spend whatever my dad receives in inheritance on council tax and housing benefit, with no room for him to "enjoy" the money.

Is this true? Will they have no control over what they spend? After the death of his mother, and ongoing illness on his side, he basically just wants to freedom to book a mediterranean cruise, buy a decent second hand car and buy half a caravan with his sister (an absolute total cost of £15,000) and a new fridge.

I have read online that there is a loophole - basically because he didn't know he was going to receive that sum of money it would be treated the same as a lottery win???

Any clarification is appreciated, I hope I have supplied enough information for those in the know.

How old are your parents, if both of them are getting their State Pension and have an AIP (Assessed Income Period) with the Pension Credit then the inheritance will not effect the Pension Credit in payment until that review period ends.

If their is no AIP then the value of any savings etc will be taken into account when working out the Pension Credit entitlement. Losing the Pension Credit could mean that they lose help with Council Tax and Housing Benefit.

The Government CANNOT force anyone to spend an inheritance on Council Tax/Housing Benefit but if your parents are not entitled to claim these benefits they will need to pay themselves - even if that means using their own money.

Oldernotwiser

rachyroundbum wrote: »

he basically just wants to freedom to book a mediterranean cruise, buy a decent second hand car and buy half a caravan with his sister (an absolute total cost of £15,000) and a new fridge.
.

Don't we all!;)

Deep_In_Debt

he basically just wants to freedom to book a mediterranean cruise, buy a decent second hand car and buy half a caravan with his sister (an absolute total cost of £15,000) and a new fridge.

I'd love all that too.

Mojisola

Whiteknight wrote: »

How old are your parents, if both of them are getting their State Pension and have an AIP (Assessed Income Period) with the Pension Credit then the inheritance will not effect the Pension Credit in payment until that review period ends.

If their is no AIP then the value of any savings etc will be taken into account when working out the Pension Credit entitlement. Losing the Pension Credit could mean that they lose help with Council Tax and Housing Benefit.

Good advice. Check this out. They may not lose anything.

Purchases like a reliable second-hand car, a new fridge and similar household items could still be made. They wouldn't count as deprivation of capital so wouldn't affect any future claims. A moderately-priced holiday would also be alright.

rogerblack

Whiteknight wrote: »

The Government CANNOT force anyone to spend an inheritance on Council Tax/Housing Benefit but if your parents are not entitled to claim these benefits they will need to pay themselves - even if that means using their own money.

They can do worse.
They can say that the spent money was spent in order to deprive him of capital, to get him benefits.
This means that he may be treated as if he still has the money, with regards to all means-tested benefits.

_THERE_IS_NO_LOOPHOLE_

The amount of capital you have is everything you have, or can apply to the court to sell. There is a fairly short list of things that will be excluded from this list for most people.
This is stuff like your home, and personal posessions.
http://www.dwp.gov.uk/docs/dmgch29.pdf These are the capital rules for JSA - other benefits are generally identical.
In general, if a significant purpose of any purchase is to get benefit, then you are always counted as having deprived yourself of capital, and as still having it.

The only safe way to spend it in most cases (other than normal subsistence with no large purchases) is to ask the DWP for approval on any large items.
If the DWP has told you it's OK, then there is no risk of them changing their mind.

shop-to-drop

What do you mean about treating it like a lottery win? Surely if you win the lottery you can't continue to claim benefits either.

skintandscared_2

Deep_In_Debt wrote: »

he basically just wants to freedom to book a mediterranean cruise, buy a decent second hand car and buy half a caravan with his sister (an absolute total cost of £15,000) and a new fridge.

I'd love all that too.

Me too!! And if someone else could pay my rent, council tax and other expenses while they're at it, brilliant!!

Sorry, but these are the kinds of thread that irk me the most of all. "I've just got all this free money that I've done absolutely nothing to actually earn, but I want to blow it on enjoying myself while taxpayers still pay all my bills, yeah?!" Er, NO!

rachyroundbum

Edale + Oldernotwiser + Deepindebt + Skintandscared - I CANNOT believe your sheer ignorance, but please forgive my failure to mention that my dad has worked as a self employed labourer for 45 years. He used to take 8 days holiday a year. 7 days in the 6 weeks holidays for us and Christmas day. He has, and continued to work himself to death. He payed his taxes and his national insurance, and he worked 12-18 hours a day. So don't sit there from the protection of your computer screen and the protection of your ignorance (or stupidity) and tell me that he hasn't earned his money. The ONLY reason he retired was because of a work related illness that has slowly beaten him over the years, and even after that advice, he STILL continued to work until he couldn't get up in the morning. HE IS 70 YEARS OLD ON WEDNESDAY.

You also seem to have conveniently skipped over the fact that my mother (in her 60's) WORKS PART TIME. Not the sort of part time that qualifies them for full benefits, but the sort of part time that means they are only allowed basic support.

As for the "free" money - I personally don't think his mother, a lifetime, hard working, tax paying responsible adult bought her house for my dad to enjoy at the tax payers expense. And, quite frankly, if any of you got your heads out of your !!!!!! you would realise that my dad has paid MORE TAX THAN ALL OF YOU PUT TOGETHER.

So thanks for the help, I can see I came to the intellectual place for advice about inheritance. BTW Deep In Debt and Skint and Scared - if you hadn't bought what you couldn't afford then you wouldn't be in your situation...something to think about while you sit there judging others. Why should everybody else in the economy foot the bill of rising costs because people like you can't understand the value of money, and the fact that if you can't buy/pay for something with cold hard cash then you have no right to buy it at all.

To those couple of posters that offered actual advice, thank you, it is very much appreciated. I would like to clarify that my dad is happy to pay his rent and his council tax, I was just enquiring because he didn't want to spend ANY of it at all, incase he was forced to spend it all on those outgoings.

welshmoneylover

rachyroundbum wrote: »

Edale + Oldernotwiser + Deepindebt + Skintandscared - I CANNOT believe your sheer ignorance, but please forgive my failure to mention that my dad has worked as a self employed labourer for 45 years. He used to take 8 days holiday a year. 7 days in the 6 weeks holidays for us and Christmas day. He has, and continued to work himself to death. He payed his taxes and his national insurance, and he worked 12-18 hours a day. So don't sit there from the protection of your computer screen and the protection of your ignorance (or stupidity) and tell me that he hasn't earned his money. The ONLY reason he retired was because of a work related illness that has slowly beaten him over the years, and even after that advice, he STILL continued to work until he couldn't get up in the morning. HE IS 70 YEARS OLD ON WEDNESDAY.

You also seem to have conveniently skipped over the fact that my mother (in her 60's) WORKS PART TIME. Not the sort of part time that qualifies them for full benefits, but the sort of part time that means they are only allowed basic support.

As for the "free" money - I personally don't think his mother, a lifetime, hard working, tax paying responsible adult bought her house for my dad to enjoy at the tax payers expense. And, quite frankly, if any of you got your heads out of your !!!!!! you would realise that my dad has paid MORE TAX THAN ALL OF YOU PUT TOGETHER.

So thanks for the help, I can see I came to the intellectual place for advice about inheritance. BTW Deep In Debt and Skint and Scared - if you hadn't bought what you couldn't afford then you wouldn't be in your situation...something to think about while you sit there judging others. Why should everybody else in the economy foot the bill of rising costs because people like you can't understand the value of money, and the fact that if you can't buy/pay for something with cold hard cash then you have no right to buy it at all.

To those couple of posters that offered actual advice, thank you, it is very much appreciated. I would like to clarify that my dad is happy to pay his rent and his council tax, I was just enquiring because he didn't want to spend ANY of it at all, incase he was forced to spend it all on those outgoings.

I thought you was a troll..