Endowment

nelsonsix

Hi,

My Parents ( Dad 68, Mum 63) are due to receive a payout on their maturing endowment Approx £16,000 + Bonuses.

They have for a long time been unable to work through disability, so are in receipt of benefits, state pension, pension credit and disability living allowance and carers allowance. They get their rent paid by the council and have no other savings.

They are due to receive this within the next year but are worried how the money will affect there normal benefits. They are already on the poverty line and are not really up to the job of dealing with all the changes and confusion.

Is there any way that this endowment can be given away to family or be put somewhere and not affect there current benefits?

Thanks for the help.
Neil

Mara69

nelsonsix wrote: »

Hi,

My Parents ( Dad 68, Mum 63) are due to receive a payout on their maturing endowment Approx £16,000 + Bonuses.

They have for a long time been unable to work through disability, so are in receipt of benefits, state pension, pension credit and disability living allowance and carers allowance. They get their rent paid by the council and have no other savings.

They are due to receive this within the next year but are worried how the money will affect there normal benefits. They are already on the poverty line and are not really up to the job of dealing with all the changes and confusion.

Is there any way that this endowment can be given away to family or be put somewhere and not affect there current benefits?

Thanks for the help.
Neil

They must be so pleased and relieved that they had the foresight to save. At last, they will be off the poverty line. Sadly, they are not able to hide the money, or give it away so that they might hang on to their benefits. Still, all is not lost, they might be able to retain some of their benefits. Call the DWP and ask.

Horseunderwater

If they give it away it will still be treated as deprivation of capital I think. If they could buy some normal everyday needed items and keep the receipts to bring that amount to under £10k - then they may well be able to keep the benefits that they now have, but there will obviously be a period when they will lose some while they are spending the £6k. Am sure that there are other people on here who know way more than myself.

rogerblack

Not all of the benefits will be affected.
As I understand it.
Pension, DLA, carers allowance are not affected at all.
Pension credit will be reduced by about 16000-10000 /500 = 32/week.
HB will be eliminated until it falls below 16000, as will council tax benefit.
You can if you choose, become an appointee and deal with the DWP and council on their behalf.

krisskross

nelsonsix wrote: »

Hi,

My Parents ( Dad 68, Mum 63) are due to receive a payout on their maturing endowment Approx £16,000 + Bonuses.

They have for a long time been unable to work through disability, so are in receipt of benefits, state pension, pension credit and disability living allowance and carers allowance. They get their rent paid by the council and have no other savings.

They are due to receive this within the next year but are worried how the money will affect there normal benefits. They are already on the poverty line and are not really up to the job of dealing with all the changes and confusion.

Is there any way that this endowment can be given away to family or be put somewhere and not affect there current benefits?

Thanks for the help.
Neil

Without sounding miserly I would suggest that being in receipt of a fair amount of benefit income with no rent or council tax to pay that they could hardly be considered to be on the poverty line.

However if they truly consider themselves to be poverty stricken then this little windfall will come in handy to buy the things for themselves that they haven't been able to afford previously.

I was under the impression that Carers Allowance and State pension couldn't both be paid to one person.

pmlindyloo

rogerblack wrote: »

Not all of the benefits will be affected.
As I understand it.
Pension, DLA, carers allowance are not affected at all.
Pension credit will be reduced by about 16000-10000 /500 = 32/week.
HB will be eliminated until it falls below 16000, as will council tax benefit.
You can if you choose, become an appointee and deal with the DWP and council on their behalf.

As I understand it

DLA and Carer's Allowance will not be affected.


They should inform Pension Credits but it is probable that your father has an assessed income period (if you can find the original letter it should tell you this)

This means that some changes do not have to be notified.

However, in my opinion it is always best to inform of change of circumstances.

If an assessed income period is not applicable then any money over £10000 will be deducted from the pension credit at the rate of £1 for each £500 (or part of).

But your parents will still be entitled to some pension credit which automatically gives them full HB and CTB (even if they only have £1 a week in Pension Credit!)

So, it is likely that your parents have an assessed income period and nothing will change or they will lose a little but still be entitled to full HB and CTB.

If they do lose a little amount of pension credit it will be balanced out by their new savings and I am sure some of this can be spent wisely to ensure a more comfortable life style getting them below the £10000 threshold.

Do get in touch with Pension Credit asap and ask whether they will need to inform them of the change of circumstances.

A link to help:

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/pc10s-guide-to-pension-credit/assessed-income-period/#capital

shedboy94

nelsonsix wrote: »

Hi,

My Parents ( Dad 68, Mum 63) are due to receive a payout on their maturing endowment Approx £16,000 + Bonuses.

They have for a long time been unable to work through disability, so are in receipt of benefits, state pension, pension credit and disability living allowance and carers allowance. They get their rent paid by the council and have no other savings.

They are due to receive this within the next year but are worried how the money will affect there normal benefits. They are already on the poverty line and are not really up to the job of dealing with all the changes and confusion.

Is there any way that this endowment can be given away to family or be put somewhere and not affect there current benefits?

Thanks for the help.
Neil

How can they possibly be on the poverty line with at least a couple of hundred pounds a week disposable income for just the 2 of them with no rent to pay??

seven-day-weekend

So they have £217 a week Pension/Pension Credit, and at least £40 a week DLA and no rent or Council Tax to pay. Poverty line, really?

There is no way they can give their money away/ hide it/burn it/throw it away/paper the walls with it/otherwise dispose of it in order to cheat the means test as this is classed as fraud.

It will not affect State Pension or DLA. It will affect Pension Credit which will be reduced. However, as long as they are entitled to some they will get their rent and CT paid.

Hope this helps