Beneficiary does not want inheritance.

6022tivo

I am acting as a executor, one of the Beneficiary's does not want their share of the estate, but wants her children to have it.
I think it is because she gets some benefits that are means tested but not sure.

My understanding as a executor, if she refuses formally, the money gets put back into the estate and is sheared between the other Beneficiary's?

Correct?

System

That is correct. If she wants it to go to the children then there needs to be a DoV.

However it could/would affect her benefits if above the relevant threshold as it would still be considered when calculating them as she has intentionally deprived herself of assets

G6JNS

6022tivo wrote: »

I am acting as a executor, one of the Beneficiary's does not want their share of the estate, but wants her children to have it.
I think it is because she gets some benefits that are means tested but not sure.

My understanding as a executor, if she refuses formally, the money gets put back into the estate and is sheared between the other Beneficiary's?

Correct?

If she is getting means tested benefits she cannot legally avoid the inheritance affecting them even if she executes a DOV. How old are the children? If they are under 18 then if a DOV was done it would create a trust until they were 18.

cte1111

We've already had this thread once, not sure why they are asking again with a different user name
http://forums.moneysavingexpert.com/showthread.php?t=5256858

DandelionPatrol

cte1111 wrote: »

We've already had this thread once, not sure why they are asking again with a different user name
http://forums.moneysavingexpert.com/showthread.php?t=5256858

OP on this thread joined in Aug 2005. I dare to suggest that the 2 users are not one and the same person.

6022tivo

No, we are not..

Not as complicated an estate as that one. Just about 70k cash to split between two gandchildren (aged 20+).

As I said one of the grandchildren has two young children, and would like the money to bypass her to the two young kids.

Unfortunately, I don't see a way out of it. They do work between them and earn about 15k, but do get some help with their housing benefit and council tax (About £300 a month), as it is not a taxable income, it won't affect any child tax credits they may receive.

My advice, is use it towards a deposit for a mortgage, but banks are not going to allow them to lend much on a wage of 15k with two kids..

Catch 22.

Keep_pedalling

The amount of money she will receive is around 10 years worth of benefit, but she would not be expected to exclusively use the money to make up the losses for those. Assuming she lost all her benefits (and that may not be the case) then she has the means to make up for it plus the ability to treat children to the odd holiday and trips out. If they need to they can spend some on a decent car, and will have spare funds for unexpected big bills like a new washing machine being required.

If the money has all gone within 5 years they could well be bringing in a higher income and not need to rely on benefits so much, and in the mean time they have been able to improve their lifestyle thanks to the inheritance.

I can understand that she wants her children to benefit but indirectly they will through holidays and treats. If the money went straight to the kids it could not be touched for years, and if she had anymore children they would get nothing.

6022tivo

Yeah, that makes sense.

Her pain is paying £650 a month rent. We will look for a house as 30k is a good deposit, bank of daddy may have to help as the mortgage they will get will be about 80k based on 30 years at £400 pay back. They may need a little more than £110k to get something decent for the kids with a decent school catchment area.

Thanks all.

Keep_pedalling

Sounds like a good plan if the bank of mum and dad can afford it, and unlike leaving it until you die you get the benefit of seeing your spare money being put to good use.