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ON ESA and PIP. Due an inheritance
kopgirl
Posts: 1 Newbie
MY lovely little mum is on end of life care. When she passes away she will leave £50K in bonds. Her house £100K. Both to be split between me and my 3sisters.
I get ESA income based support group and PIP. I understand that I will loose my ESA housing benifits and CTax ben.
I am thinking of pre paying for my own funeral so my boys wont have the worry when my time comes. I also could do with buying a new car and upgrading some of my electrical appliances. And may be replace my second hand furniture. I'm just very worried in case I'm going to get in trouble if I do these things.
I get ESA income based support group and PIP. I understand that I will loose my ESA housing benifits and CTax ben.
I am thinking of pre paying for my own funeral so my boys wont have the worry when my time comes. I also could do with buying a new car and upgrading some of my electrical appliances. And may be replace my second hand furniture. I'm just very worried in case I'm going to get in trouble if I do these things.
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Comments
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She, or her legal representatives can set up a trust, which will not be taken into account for benefits purposes.
This can only happen _before_ death.
It cannot be arranged by you.
It is quite legal for the money to be arranged so that it all goes into trust, you never see a penny of it directly - and it does not affect your ESA/HB at all.
The trust would then be able to pay for - for example - heating, or whatever its purpose was.
This cannot be done once the death has occurred.
Any money 'given away' once that happens risks what you mention above.
There are essentially no hard and fast rules as to what's 'allowed'. The best you can do is to ask them beforehand.0 -
[QUOTE=kopgirl;64687143
I am thinking of pre paying for my own funeral so my boys wont have the worry when my time comes.
I also could do with buying a new car and upgrading some of my electrical appliances. And may be replace my second hand furniture.
I'm just very worried in case I'm going to get in trouble if I do these things.[/QUOTE]
Most of those things would be considered legitimate expenses as long as you buy reasonably priced goods and not top of the range white goods or a brand new car rather than a good second-hand one.
It would make life less stressful if the DWP would either put in writing what you are allowed to spend on or would give people permission in writing to spend on particular items. Instead, it's usually a case of spend it and keep your fingers crossed that it isn't counted as deprivation of capital.
I would take photos of the old stuff showing any problems with them and keep all receipts of the new items.0 -
rogerblack wrote: »She, or her legal representatives can set up a trust, which will not be taken into account for benefits purposes.
This can only happen _before_ death.
It cannot be arranged by you.
It is quite legal for the money to be arranged so that it all goes into trust, you never see a penny of it directly - and it does not affect your ESA/HB at all.
The trust would then be able to pay for - for example - heating, or whatever its purpose was.
This cannot be done once the death has occurred.
Any money 'given away' once that happens risks what you mention above.
There are essentially no hard and fast rules as to what's 'allowed'. The best you can do is to ask them beforehand.
Surely you are not suggesting the OP puts her mother, who is receiving palliative care, to the hassle of varying her will? That's a bit sick.
OP, what is important with deprivation of capital is your intent. If these are items that legitimately need replacing and you would replace them if you were not on benefits, then there should not be a problem. If you are spending money in order to get below the capital limits, the DWP will treat you as if you still have the money (notional capital). Seeking approval before spending is always good advice.0 -
MY lovely little mum is on end of life care. When she passes away she will leave £50K in bonds. Her house £100K. Both to be split between me and my 3sisters.
I get ESA income based support group and PIP. I understand that I will loose my ESA housing benifits and CTax ben.
I am thinking of pre paying for my own funeral so my boys wont have the worry when my time comes. I also could do with buying a new car and upgrading some of my electrical appliances. And may be replace my second hand furniture. I'm just very worried in case I'm going to get in trouble if I do these things.
Sorry to hear about your mum. It is a very hard time for you all.x
I was in a similar situation a year or so ago. Claiming ESA support and DLA. My dad left 33K and no will so it all became mine. It was a nightmare and I lived in fear of the way I spent it. I did buy a 7K car and new white goods and new sofa chairs and floor coverings. I then had to live on the rest until it was below 16K. It was a nightmare from start to finish.
When reclaiming it took 3 months before I got a payment. It was all checked. My HB was suspended because ESA was not paying. Total mix-up!
Both my sons work and always have.They are in their 30's. If I had known that I would inherit it all. I would have asked that my dad leave it all to my eldest son. He would have then made sure I and his brother had a fair share!
I do not know how old your sons are or how much you can put your trust in one of your sisters, but if there is any possible way of stopping the money coming to you. My advice would be to do so!
Take care.Benefit fraud costs £1.2b per year. Tax evasion (illegal) costs £70b, tax avoidance (legal) costs £25b, overdue receipts amount to £25b. Every year we lose 120 times more on tax than we do to benefit fraud.0 -
Surely you are not suggesting the OP puts her mother, who is receiving palliative care, to the hassle of varying her will? That's a bit sick.
Death isn't kittens all the way down.
Actually properly making a will is one way of ensuring that things will be done as we desire them.
Not doing so risks at the best extra costs, and in many cases the state entirely subverting a gift.
The reasonable question may be asked 'why aren't they grateful to be off benefits'.
I think very few people would not be.
The problems arise especially for those who are not likely to be getting much better.
Great.
They have an inheritance.
Which if they spend as if it was actually theirs - without careful thought as to if a decisionmaker will approve - they will end up at the end of the money and being treated as if they still have much of it.
There are almost no written rules as to what is allowable.
One DM may decide that a once-in-a-lifetime trip to see family is acceptable. Another may question Tesco Finest Biscuits.
A properly written will can - for example - pay someones heating bill, or actually do meaningful positive things for the person - without them having to account for every penny.
Actually write a will - now - if someone you want to give money to in your will is likely to be on means tested benefits for a long time.
Consider the appropriate form of trust so that certain expenses can be paid for them.0 -
belladonna13 wrote: »Sorry to hear about your mum. It is a very hard time for you all.x
I was in a similar situation a year or so ago. Claiming ESA support and DLA. My dad left 33K and no will so it all became mine. It was a nightmare and I lived in fear of the way I spent it. I did buy a 7K car and new white goods and new sofa chairs and floor coverings. I then had to live on the rest until it was below 16K. It was a nightmare from start to finish.
When reclaiming it took 3 months before I got a payment. It was all checked. My HB was suspended because ESA was not paying. Total mix-up!
Both my sons work and always have.They are in their 30's. If I had known that I would inherit it all. I would have asked that my dad leave it all to my eldest son. He would have then made sure I and his brother had a fair share!
I do not know how old your sons are or how much you can put your trust in one of your sisters, but if there is any possible way of stopping the money coming to you. My advice would be to do so!
Take care.
Why was it a nightmare paying your own way for a few years? surely it would have been a welcome event not needing benefits.0 -
belladonna13 wrote: »Sorry to hear about your mum. It is a very hard time for you all.x
When reclaiming it took 3 months before I got a payment. It was all checked. My HB was suspended because ESA was not paying. Total mix-up!
Both my sons work and always have.They are in their 30's. If I had known that I would inherit it all. I would have asked that my dad leave it all to my eldest son. He would have then made sure I and his brother had a fair share!
I do not know how old your sons are or how much you can put your trust in one of your sisters, but if there is any possible way of stopping the money coming to you. My advice would be to do so!
Take care.
But you were the next of kin and that money belonged to you and not to your sons.
It meant you came off Income Based ESA for a while but you got to enjoy your Dads money and that is what he would have wanted.
Why would you want to deny yourself this ?
It was your dads legacy to you..
Just because your sons work it doesn't mean that they are more entitled to it then you.
put yourself first now and again..0 -
mikey_bach wrote: »
It meant you came off Income Based ESA for a while but you got to enjoy your Dads money and that is what he would have wanted.
Why would you want to deny yourself this ? It was your dads legacy to you..
You could well look at it another way.
You inherit what your father worked hard for, paid tax on it and putting something aside as savings was more important than having a good and more comfortable lifestyle.
Then came the DWP telling you that your benefits are to be removed until most of what you inherited has been used to live on.
Only then can you go back on those benefits and once again be supported by the state.
To me there is absolutely no difference where a beneficiary is on means tested benefits for a tax to be levied by the state on your inheritance at the rate of 100%.
Because the only person that will actually benefit financially is the state be it by a 100% tax or removing the financial support you were receiving until you had spent it all on living costs!
Where does the beneficiary see any benefit of the money he inherited by virtue of the self sacrifice of his father?0 -
Only then can you go back on those benefits and once again be supported by the state.
Where does the beneficiary see any benefit of the money he inherited by virtue of the self sacrifice of his father?
Her father was lucky in that he could work and support himself and so can her sons.
She is unable to work because of illness so scrapes by on a means tested benefit that has strict capital limits. ESA IB, this just meets basic living costs. The money has meant a few luxuries for her, new car etc.
You can't have both0 -
PIP will not be affected, only any means tested benefits you are on.
Check with the DWP, before you spend any of it, as you don't want them applying a 'deprivation of assets' regulation on you.
Lin
You can tell a lot about a woman by her hands..........for instance, if they are placed around your throat, she's probably slightly upset.
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