HELP - Inheritance - can it be refused?

Middledyke

Hi all

My Dad died recently aged 87 and wrote his version of a 'will' on a scribbled bit of paper which was never witnessed or signed so as far as I'm aware it is void and he is regarded as dying 'intestate'.

My Mum is still alive and kicking but she has lived separately from him (in a council flat) for over 22 years and during that time they have had no direct contact as such, just been in the 'same room' at the odd wedding etc, however they never legally divorced or separated.

Dad's assets consist of the contents of his rented council house (very little furniture etc and nothing of value) and his savings probably totalling around £40k.

Now for the 'fun' bit!

Dad has left the money in his scribbled 'will' to 3 of his children (my 2 sisters and elder brother), however as I understand it as this is not an official will all the money will go to my Mum ... but she DOESN'T WANT IT (if he was still alive she would kill him for not making a proper will!!! :eek:). She's already having to reluctantly accept his pension (even though she had my brother tell the company that she didn't want it!:o).

Now don't get me wrong, I'm NOT after any of the money and don't need it, but wondered if there is a way that my Mum can claim that, due to the length of time they've been apart, they should be regarded as separated, so that my siblings CAN received it rather than her as per the rules of intestacy.

My Mum (aged 87) is getting very, very wound up about all of this and it is starting to affecting her health so I'm trying to find out the 'ins and outs' of it all for her.

Thanks for taking the time to read this.

Mel

Mojisola

Middledyke wrote: »

My Mum (aged 87) is getting very, very wound up about all of this and it is starting to affecting her health so I'm trying to find out the 'ins and outs' of it all for her.

If your Mum claims any means tested benefits and refuses this inheritance and that comes to light, she would be assessed as having the capital.

If she has enough money of her own, she could make a deed of variation - see "Rearranging the way the estate is shared out" https://www.adviceguide.org.uk/england/relationships_e/relationships_death_and_wills_e/who_can_inherit_if_there_is_no_will___the_rules_of_intestacy.htm

getmore4less

Don't bother with a deed of variation unless her estate is over £650k, she can just gift it.

Someone(one of the kids) need to pick this up, administer the estate ask her what she want and make it happen.

Kore_Arabin

getmore4less wrote: »

Don't bother with a deed of variation unless her estate is over £650k, she can just gift it.

Someone(one of the kids) need to pick this up, administer the estate ask her what she want and make it happen.

I'm sorry, but this makes no sense. It is *always* better to vary the terms of a Will or intestacy by way of a deed of variation, rather than just gifting the money you would otherwise receive.

What if Mum comes in to some money, or wins the lottery? She will have used up some of her available nil rate band needlessly.

Kore_Arabin

It is also possible to 'disclaim' the inheritance. The downside of this is that, under a disclaimer, your Mum cannot specify to whom the inheritance should be given; it will pass according to the intestacy rules.

A deed of variation seems to be the best way forward, subject to the caveat by Mojisola about means-tested benefits.

In addition, is there any reason why your Mum can't just arrange for the widow's pension she is reluctantly receiving to be forwarded on to be paid into one of the children's bank accounts each month?

anmarj

Kore_Arabin wrote: »

In addition, is there any reason why your Mum can't just arrange for the widow's pension she is reluctantly receiving to be forwarded on to be paid into one of the children's bank accounts each month?

there lies another problem, because if she is on means tested benefits and then gives the pension away, she can still be treated as having that income, and would still be taken into account.

getmore4less

Kore_Arabin wrote: »

I'm sorry, but this makes no sense. It is *always* better to vary the terms of a Will or intestacy by way of a deed of variation, rather than just gifting the money you would otherwise receive.

What if Mum comes in to some money, or wins the lottery? She will have used up some of her available nil rate band needlessly.

Not any more.

The spouse nill rate band is transferable and it is better to take the money, and use it or gift it, as the transferable portion may get increased.

After 7 yers the gifts don't count so you are actualy increasing the potential future nill rate band for the lottery win.

madbadrob

Even though your mother and father have not lived together for a long time the fact they are still legally married she would get all the estate to a value of £250,000 and then a half life interest in 50% of the remainder. Basically this means if an estate is worth £350,000 your mother would get 250k +50k plus the interest from the other 50k. Upon her death this would pass to you and your siblings no matter whether she leaves a will or not. If she so wished she could sign away her entitlement to the estate and this would then pass to you and your siblings but as others have stated if your mother is getting means tested benefits then she would encounter problems with the DSS. (This is then time consuming as we found out when my own mother passed on her share of my grandfathers estate to my brother and I).

I would advise you and your mother to use the free half hours advice from a solicitor as to what is the best course of action for you all.

Many people think that the piece of paper at the side of the bed is sufficient for where you want your estate to go after their death. Unless this is signed and witnessed by two independent people its not worth the time and effort it took to write.

Rob

Kore_Arabin

getmore4less wrote: »

Not any more.

The spouse nill rate band is transferable and it is better to take the money, and use it or gift it, as the transferable portion may get increased.

After 7 yers the gifts don't count so you are actualy increasing the potential future nill rate band for the lottery win.

This is the reason I really dislike self help fora. People happily post when they do not know what they're talking about.

The transferable nil rate band MAKES NO DIFFERENCE to using up a portion of your own nil rate band.

To the OP - ignore getmore4less' gibberish - use a Deed of Variation!

Kore_Arabin

anmarj wrote: »

there lies another problem, because if she is on means tested benefits and then gives the pension away, she can still be treated as having that income, and would still be taken into account.

Yup. That's why I referred to Mojisola's caveat in my post.

getmore4less

Kore_Arabin wrote: »

This is the reason I really dislike self help fora. People happily post when they do not know what they're talking about.

The transferable nil rate band MAKES NO DIFFERENCE to using up a portion of your own nil rate band.

To the OP - ignore getmore4less' gibberish - use a Deed of Variation!

I suspect you don't understand how the transferable Nill rate band works.


You need to explain where I said this effects the nillrate band of the living individual down transfering all assets to spuse increases their nill rate band 100%.a DOV reduces the %.

Doing a dOV uses up the transferable band so it is not available in the future which reduces the potential available band(currently £650k).

As the transfered part is a % this could increase(unlikely to decrease) the future nill rate band for the living person.

If you believe a DOV is the right thing do an example that shows the working.

here is mine(subject to changes in allowances)

Lliving spouce no assets, dead spouse £325k

all transfers and then gifted

Living spouse nill rate band £325k after 7 years £650k
(the gifts use up the transferd band for 7 years)

DOV the nill rate band stays at £325k never gets to £650k


Also asumes the living don't end up with multiple spouses, when you have one die young it can be worth considering because you can combine bits from multilple dead spouses.