Inheritance + CT/HB Pension Credit

Mojisola

rachyroundbum wrote: »

He has no problem paying his way, it sort of comes with being self employed for so long. But what is stressing him out is not knowing whether he is allowed to spend any of it at all, on anything. Is he going to get into trouble if he books a holiday? Is he going to get into trouble if he buys a fridge or a car? 95% of it will go on the bills, but what is he "allowed" to buy, and what isn't he allowed to buy?

AgeUK has a useful fact sheet -
https://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true
See Section 10 in particular.

Also https://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS53Capital_income_and_means_tested_benefits_fcs.pdf.pdf?dtrk=true
"For Pension Credit there is no limit to the amount of capital you can have. Capital up to £10,000, and any income you receive from it, is ignored. You are treated as having ‘assumed income’ of £1 for every £500 (or part of £500) of capital you have above £10,000.

For Housing Benefit and Council Tax Benefit, the same amount of capital, £10,000, is ignored. You are treated as having assumed income on capital above £10,000 as set out above.

But, unlike Pension Credit, HB and CTB have an upper capital limit, which is £16,000. If you have more than £16,000 you are not entitled to any HB or CTB, unless you qualify for PC Guarantee Credit. If you get PC Guarantee Credit, all of your capital is ignored for HB/CTB because PC Guarantee Credit acts as a passport to maximum HB/CTB."

My parents found the Pension Service advisors were very helpful - https://www.dwp.gov.uk/about-dwp/customer-delivery/the-pension-service/ They came out to the house and went through all their details and filled in the forms to claim what they were entitled to. They don't just look at pensions but all benefits.

Your father needs to know for certain what he can spend and how his benefits will be affected so that he can stop worrying.

rachyroundbum

GlasweJen wrote: »

I'm not seeking attention, everyone on here knows because I've been a member for years and it's the sort of thing that comes up.

My point was that you can't say that because someone has worked for however long they're entitled to x, y and z. Some people can't possibly work that long and that doesn't make them any less entitled to enjoy the perks that come with an inheritance.

It's not my problem that your dad didn't bother to get a proper pension so why should I be paying his way now that he can afford to do so?

If you google deprivation of capital then you'll see that the whole "what can i spend" is a serious sticky situation and it's best getting individual advice from your council/dwp etc. Usual rules are you can replace furniture on its very last legs with a reasonable replacement (not a 4 grand american fridge unless your last one was like that), a reasonable holiday (expensive cruise is probably out), and replace the family car if it's essential. You can't give money away or pay off bills that aren't being enforced through a court. Anything over £6,000 will decrease their benefits and if it goes over £12,000 then there will be no benefits payable until the council/dwp determine that the money should go below £12,000 with full entitlement kicking back in when the money "should" be below £6,000.

Now if you'd asked nicely you'd have been told all that ages ago.

Well, you are attention seeking, because like the big shiny banner says, I'm a newbie to this forum, so why tell a newbie your story if you don't want something from it? It's not the sort of thing that comes up in a thread about inheritance and benefit - I don't recall anybody asking anybody else whether they were dying, you just threw it in there.

Why are you getting this idea that you are paying his way now that he has money? He is due to get an unconfirmed sum, if you had bothered to read the OP, he doesn't have it now. It's not like him and his wife are sitting back, sipping martinis not doing a days work between them, they both worked their entire lives, and one does part time now to pay for what they do have. You seem to have this idea that he is CURRENTLY living a life of luxury, which simply isn't the case.

As for the perks of inheritence, that's exactly the point - what are the perks he is going to be able to enjoy? It's not my dad's problem that there are millions of people that are jealous of inheritance. What is my dad's problem is the lack of clarification and the scare tactics used by the govt regarding what he is allowed to spend. He's terrified of spending any of it, even to replace the frdige when it finally comes through because he doesn't want to get screwed over in the future.

Here's a really simple idea for you - just give the information you know to be fact. If you don't have anything constructive to offer, why do you feel the need to express anything. It wasn't an opinion based OP, I didn't ask what your favourite jelly bean was, I asked for fact. Either provide it or stay silent. Why do people find it so difficult to understand that on these sorts of forums?

rachyroundbum

mildred1978 wrote: »

I'd love to know how you can claim that!

45 years of income tax for self employment. Countless years on the books as an employee - how many years are you currently on? Not including the inheritance tax he is about to pay. Adds up to a little bit more than the average joe.

loopyloo50

Err not one to post normally but I feel that maybe I understand the consternation that rachyroundbum is experiencing - to get away from this particuar experience there is a similarity when an elderly person enters a care home - elderly father worked all his life, never claimed a penny, paid heavily into pension provision etc etc - he owns his own home and has happily been planning it's sale so his children can have a 'windfall' that he can see them spend - however as soon as the house is sold 550odd pounds will be taken each week to pay for his care. (and 200 odd pounds for each week he's already received as his pension 'only' makes 300ish) my dilemma is as yours - he wants to give his grandchildren/children at least 1,000 pounds each but as POA for him I'm concerned that this will be deemed as 'getting rid of funds' and getting to the 23,000 limit more quickly - so basically I'm denying him his right to spend his hard earned cash as he wants to - but having said that I'm grateful for the care and safety that he receives - as I have to work I cannot look after him full time - tried it but as dementia worsens he isn't safe on his own. Anyhow - I THINK that we share the same concerns.......Good Luck!(not such a quick reply eh? sorry!)

rachyroundbum

loopyloo50 wrote: »

Err not one to post normally but I feel that maybe I understand the consternation that rachyroundbum is experiencing - to get away from this particuar experience there is a similarity when an elderly person enters a care home - elderly father worked all his life, never claimed a penny, paid heavily into pension provision etc etc - he owns his own home and has happily been planning it's sale so his children can have a 'windfall' that he can see them spend - however as soon as the house is sold 550odd pounds will be taken each week to pay for his care. (and 200 odd pounds for each week he's already received as his pension 'only' makes 300ish) my dilemma is as yours - he wants to give his grandchildren/children at least 1,000 pounds each but as POA for him I'm concerned that this will be deemed as 'getting rid of funds' and getting to the 23,000 limit more quickly - so basically I'm denying him his right to spend his hard earned cash as he wants to - but having said that I'm grateful for the care and safety that he receives - as I have to work I cannot look after him full time - tried it but as dementia worsens he isn't safe on his own. Anyhow - I THINK that we share the same concerns.......Good Luck!(not such a quick reply eh? sorry!)

I work with elderly people with dementia, so I understand where you are coming from regarding the level of care they need. And thank you, our situations are similar. It's not fair, at 70, that he is terrified and under extreme stress regarding this gift from his mum, because no governing body wants to put it in writing exactly what he can and can't do. I just want my dad to be free from the stress, and do with the money that he sees fit as the best way to remember his mother, and to take the time to move through this final stage of grief.

sunnyone

rachyroundbum wrote: »

45 years of income tax for self employment. Countless years on the books as an employee - how many years are you currently on? Not including the inheritance tax he is about to pay. Adds up to a little bit more than the average joe.

Your showing even more ignorance love, your dad will not pay one penny inheritance tax ever, nor did he pay much for his self employment (more ignorance on your part)

GlasweJen

Lol where did I copy and paste?

I used to be a benefits advisor, before the dawn of "credits" unfortunately but I am clued up on the old benefits, council tax, DLA, housing benefit etc. No copy and pasting here, too much effort on an iPad.

skintandscared_2

Look, the point is, in relation to the issue at hand (the inheritance) it's totally irrelevant how many years your father has worked/paid tax/blah, blah, blah. The issue is what happens with money he is being GIVEN. Whatever lifestyle your father currently has is a reflection of the provisions he made for himself over the years.

The rules relating to inheritance/gifts are the same for everyone, no matter how old they are. The benefits pot isn't some limitless cashcow - if people have their own money (from whatever source) they are expected to use it to pay for their own living costs rather than take benefits. That's how it works!

Pollycat

Wow!

A bit heavy atmosphere on here.

I thought I add my two-pennorth as my Mum is in sort-of a similar situation and I've posted about it here:
https://forums.moneysavingexpert.com/discussion/3492707

Does anyone agree that the key question is whether the OP's Dad has an assessed income period?


From what I've read in the Pension Credit booklet, it clearly says that if you have an assessed income period, you don't have to tell them (DWP) about changes in:

• Savings & investments
• Personal or work-related pensions
• Income from annuities

So to me, that sounds like the guarantee pension credit would continue to be paid even though savings (as a result of the inheritance) have inceased.

However, if you are in receipt of housing benefit and council tax benefit you do have to tell the council about changes in your income and savings.

So, the question from me is - if you are still in receipt of guaranteed pension credit, do you still continue to get CTB & HB even though your savings are in excess of £16000?

FWIW, Mum currently gets guaranteed pension credit and CTB & HB even though her savings are in excess of £16K.

shop-to-drop wrote: »

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.

About 6 years ago Mum & Dad moved into council-owned, warden controlled senior people's accommodation and put their house up for sale (old terrace).

They were in receipt of Savings Pensions Credit at the time and the day they received the money from the house sale, I phoned up DWP to report the change in circumstances.

A few months later, I noticed they were still being paid Savings PC so I rang up again and the guy said that as they had an assessed period, any change in their savings did not affect their entitlement to Savings PC.
He actually said 'even if they win the lottery they will still get Pension Credit until the end of the assessed income period'.

So, yes it would seem that in some circumstances you can continue to claim benefits even if you've won on the lottery.

Oldernotwiser

rachyroundbum wrote: »

45 years of income tax for self employment. Countless years on the books as an employee - how many years are you currently on? Not including the inheritance tax he is about to pay. Adds up to a little bit more than the average joe.

You could argue that one would need to subtract all of the debts that were written off by bankruptcy.

NB. Why is he going to be paying Inheritance Tax if his inheritance is as small an amount as you first said? Have you been accurate in the information you've given here?