Benefits, Inheritance and Gifting Money

FBaby

I understand how your parents feel, but what they want to do is what many people wish they could but can't. The priority is for them to support themselves.

Your argument is that they will be off benefits for 3 years, so it is ok, but if they keep all the money, then they could be off benefits for another two years so it is still deprivation.

You say you don't need the money, so maybe the best thing to do is to provide reassurance to your parents that you would be happier knowing they are able to live comfortably without the stress of being on benefits than getting the money and risking them to be in trouble which would mean you and your sibling having to support them during that time anyway.

Cheeky_Monkey

It's really quite simple - she can't do it and expect to get away with claiming benefits again long before she would have needed to if she'd not given away £24k for no reason at all.

They can just leave you and your brother their house can't they or are they in social housing?

Mojisola

adaesther wrote: »

My mother is due to inherit approx. £60K from my grandmothers estate.

FBaby wrote: »

Your argument is that they will be off benefits for 3 years, so it is ok, but if they keep all the money, then they could be off benefits for another two years so it is still deprivation.

If the problem was that the legacy would lead to inheritance tax being paid on your mother's estate when she died, she would be able to make a deed of variation, pass the money directly to you and avoid paying inheritance tax.

Doesn't seem fair, does it?

Ames

There's also the issue of care home fees if they're needed within the next seven years, they'll also look back at money being gifted and act as if she still had it.

TELLIT01

There is something called a deed of variance or something similar whereby the content of a will can be changed if all parties agree. Your mother would need to speak to a solicitor to find out if something can be done by that method to have monies go directly to yourself & your brother without her having access to it at all.
I'm no expert so certainly wouldn't like to suggest whether or not it is a practical option.

poppy10_2

adaesther wrote: »

she is heartbroken that she cannot give her children what she wants.

She can. She just can't expect the taxpayer to give her lots of money afterwards.

Mojisola

TELLIT01 wrote: »

There is something called a deed of variance or something similar whereby the content of a will can be changed if all parties agree. Your mother would need to speak to a solicitor to find out if something can be done by that method to have monies go directly to yourself & your brother without her having access to it at all.

I'm no expert so certainly wouldn't like to suggest whether or not it is a practical option.

It isn't an option if you are receiving means tested benefits. You will be assessed as if you still have the money you've given away.

Torry_Quine

Ames wrote: »

There's also the issue of care home fees if they're needed within the next seven years, they'll also look back at money being gifted and act as if she still had it.

The seven years is for inheritance tax, there is no time limit in regards to care home fees.

GirlFromMars_2

Have your parents thought about buying a home to live in instead of renting?

Buying isn't for everyone, but it is something they should be able to use the money for, and if they are only claiming Housing Benefit at the moment it should bring them out of the benefits system altogether.

And no, they can't give you any money and expect to receive it back from the tax payer at a later date. If they give you money that is their business, but they will continue to be assessed as having it, even though they do not.

SandraScarlett

It's good that you've posted this, because nobody wants to discuss death or wills with family members, but the situation could have been avoided.


If your Nan had left the money directly to you and your brother, reducing the amount your Mum would get, there wouldn't be a problem. Over 30 years ago, I couldn't even discuss with my parents whether they wanted to be buried or cremated.


I think the suggestion that your Mum uses the money as a deposit on a home, is a good one.


xx