Surely you can' turn down an inheritance if you're on means tested benefits?

MrsManda

rotoguys wrote: »

bull****

Charity is an exception - read it up.

Do you have a link to back up your claim?
Payments made BY charities may be disregarded, but I've never read anywhere that giving money to charity is a way around the capital rules.

Capital rules for ESA have been provided by Rogerblack. The capital rules for JSA and Income Support are roughly the same:

http://www.dwp.gov.uk/docs/dmgch29.pdf

PoorCharleyBear

there are quite a few of these inheritance posts- due to inherit money but on means tested benefits.

Why does almost everyone say they would rather refuse/give the money away than lose their benefits?

Surely giving it away/using it to live on has the same impact....with the possibility that if you live on it AND you start work, you are massively better off. What an incentive to get any old job to just bring some money in!

So why oh why, would most of these posters prefer to give the money away just to keep receiving benefits? Am I missing something?

Mrs_Arcanum

PoorCharleyBear wrote: »

there are quite a few of these inheritance posts- due to inherit money but on means tested benefits.

Why does almost everyone say they would rather refuse/give the money away than lose their benefits?

Surely giving it away/using it to live on has the same impact....with the possibility that if you live on it AND you start work, you are massively better off. What an incentive to get any old job to just bring some money in!

So why oh why, would most of these posters prefer to give the money away just to keep receiving benefits? Am I missing something?

Some people have problems with money. Knowing that all bills are paid & they are left with X amount to live on per week is easier.

Having to think about paying rent, prescription charges, Council tax, utilities etc. would all be too much.

Mara69

And some would really, really like to be able to hide the money, spend it on what they like while continuing to have their benefits paid.

drwho2011

PoorCharleyBear wrote: »

there are quite a few of these inheritance posts- due to inherit money but on means tested benefits.

Why does almost everyone say they would rather refuse/give the money away than lose their benefits?

Surely giving it away/using it to live on has the same impact....with the possibility that if you live on it AND you start work, you are massively better off. What an incentive to get any old job to just bring some money in!

So why oh why, would most of these posters prefer to give the money away just to keep receiving benefits? Am I missing something?

This is a generalisation but someone on benefits is more likely to have a history of defaulting on credit, have debts that are hard to manage and have difficulties budgeting.

One of the problems that can arise if if you owe money and come into an inheritance then creditors have something to chase and threats of court action become more likely. Or if you have credit card debts and bank the money with your creditor then you could fall foul of the setting-of rules and suddenly a chunk is gone.

Possibly people are worried about reclaiming sickness related benefits and worry that they will have to appeal or the rules will change to make it harder to reclaim.

pstuart

rotoguys was initially correct in the fact that unless someone reports (or the recipient comes under investigation) the case to the DWP then the fraud will not be discovered.

As an administrater, 5 years ago, I distributed £80k between four people, two of which wanted and received cash.

If I was asked at a later stage who got what and by what means, would I have to tell ?

We all seem to be under the impression that there are thousands of Civil Servants constantly trawling through our records, when in fact its generally only those who are reported on by 'good minded' citizens.

BigAunty

PoorCharleyBear wrote: »

there are quite a few of these inheritance posts- due to inherit money but on means tested benefits.

Why does almost everyone say they would rather refuse/give the money away than lose their benefits?

Because they are not used to spending their own money on their own living expenses and greatly resent that a nest egg has to be used to pay their rent, council tax and daily living expenses.

Because they are so benefit dependent, that any significant change disturbs them - they prefer to be cushioned on a modest income for the forseeable future than be disturbed with wealth that they can't blow on luxury items due to the 'deprivation of capital' rules that stop them from being able to squander it.

They have lost sense of personal responsibility and crave the security of indefinate benefits.

I recall a lady in scotland who won around £50k on the bingo whose social housing landlord was taking her to court to repossess the property for rent arrears as her housing benefit was cancelled due to her new income. Asked by the judge why she hadn't used it to pay her rent and why she had arrears she said something like 'They cancelled my housing benefit'. I think this shows how deeply attached people get to their benefits - they'd risk the loss of their council house rather than dig into their substantial savings!

cit_k

rogerblack wrote: »

Charity is not an exception.
http://www.dwp.gov.uk/docs/dmgch52.pdf

These are the ESA rules on capital. (most other benefits are similar or identical)
Nowhere (other than mentioning some charities from which payments to the claimant are exempt from consideration as savings) are charities mentioned in this guidance.

In short - capital is anything you have, which you can sell, or can apply to the courts to get.
With some exceptions for personal possessions.

Specificaly, see 52175 in the above document.

If a person gives away their rights to an inheritance, then they are guilty of deprivation of capital.

And of benefit fraud, if they do not declare this capital, as it would eliminate their rights to benefit.
(if a large amount)

Im not convinved it would be deprivation of capital, is there any case law on the matter?

The DM guide does not seem to mention inheritance anywhere, and it clearly states that its only deprivation of capital if the purpose was to obtain benefits, which in the opening post it does not appear to be

I know he's on means tested benefits but because he fell out with the person who died he says he's told the solicitors he doesn't want to be included.

It may or may not be regarded as deprivation of capital, I would be interested to see any previous decisions/case law on the area.

bored_at_home

heres another question along the same lines, just say eg the person on means tested benefits inherited 20k but had debts for 14k they had previously had interest stopped on by sending income and expenditure form to the creditors. would they be guilty of deprivation of capital in using the inherited money to pay the creditors off?
i ask due to someones comment made regarding banking inheritance and a chunk being swallowed by the bank....

pineapple

Is the person actually dead yet? It wasn't clear! If not the OP could ask about getting the will altered - simples. Let me say here and now, I'm happy to put my name forward as a substitute. Sometimes one just has to step up to the plate - sigh....