Pending Inheritance

cmos

A friend of mine needs to claim housing benefit. She currently has no savings or available cash. She has been left an inheritance of over £16000. Probate has been granted but the executors are are not paying out due to some dispute. She has been told that she cannot claim benefits because this inheritance is classed as a capital asset. How can this be if she cannot get or use the money to support herself ?
Anybody got opinions on this ?

benefitbaby

If probate has been granted then the money is hers so it will depend on the reasons for the money being witheld by the executors.

The DWP and LA's can treat someone as having capital when they can't actually lay their hands on it so I strongly advise your friend seeks specialist advice.

Mojisola

cmos wrote: »

A friend of mine needs to claim housing benefit. She currently has no savings or available cash. She has been left an inheritance of over £16000. Probate has been granted but the executors are are not paying out due to some dispute.

She has been told that she cannot claim benefits because this inheritance is classed as a capital asset. How can this be if she cannot get or use the money to support herself ?

Her current state is that she has no savings. Until the inheritance is in her bank, it's not hers.

She needs to claim using her current situation. When that changes, she can notify the authorities.

JimmyTheWig

Can she apply for some sort of crisis loan?

Mojisola

benefitbaby wrote: »

If probate has been granted then the money is hers so it will depend on the reasons for the money being witheld by the executors.

The DWP and LA's can treat someone as having capital when they can't actually lay their hands on it so I strongly advise your friend seeks specialist advice.

That's crazy! Sometimes payouts don't happen for years. What is someone meant to do while they are waiting for the money?

cmos

Thank you benefitbaby, that is what the welfare rights and CAB have told her.
Mojisola, I agree that would be the logical assumption. Once the inheritance has been cleared, she won't need the benefits anymore.
JimmyTheWig, I'll suggest it, currently that's me.

Thank you all.

Mojisola

cmos wrote: »

Thank you benefitbaby, that is what the welfare rights and CAB have told her.

Mojisola, I agree that would be the logical assumption. Once the inheritance has been cleared, she won't need the benefits anymore.

I could understand it if the benefits could be reclaimed after the inheritance actually comes through - as it is with some compensation payouts - but she should be entitled to help when she needs it.

poppasmurf_bewdley

The money is not counted as hers until it is actually in her account.

Her best bet would be to apply to the Executors of the will for an interim payout from the estate, assuming the dispute does not cover the whole of the amount of the estate.

This happened for my brother and myself after my Mum died two years ago. We got an interim payment, then a main payment, followed by a final payment spread out over four months.

rogerblack

The inheritance is a capital asset, and if she had access to it, she would not be due means tested benefits.
There are circumstances in which the executors legally cannot distribute the cash, until certain conditions are met.
For example, there might be a challenge to the will, or a doubt that a significant sum may need to be taken out of the estate due to a benefit overpayment.

If the executors pay out early, they are personally liable.
http://www.dwp.gov.uk/docs/dmgch29.pdf - see 27619 and on.
(This is for JSA, the rules for HB are I believe similar, though this should be checked).


The rules in this area are complex, and details will depend on why the executors are not distributing the money.

If there is doubt that any money will be available, as there are priority claims on it, then that's one thing.
If there is merely a dispute about the amount, an interim payment could be made to her.
See 29713 in the above guides for timescales the executors should have distributed by.

At the least, she would need a letter from the executors saying why they will not distribute the money.
If they are proceeding reasonably, and the reason for not distributing is good, then hopefully the council will accept this.

However, they may take the harder line that she can sell the rights to her inheritance, and get money now.

cmos

There will be no intrim payout unfortunately, it's already been requested. The dispute of what should have been a straight forward division is in the hands of the solicitors. Specialist advice will be her best bet.
Thank you rogerblack, I'm going to read through that document.

dodger1

Mojisola wrote: »

That's crazy! Sometimes payouts don't happen for years. What is someone meant to do while they are waiting for the money?

You don't tell the benefits office of any inheritance until you actually receive it. That way the benefits won't stop.