Inheritance problem

Bomopu

My mother died 5 years ago, pre-deceasing my grandmother (her mother). Before she died she asked me to give 50% of the inheritance that I will receive from my grandmother to my step-sister. This made sense to me because if my mother had still been alive she would have got all the inheritance and would have left 50% to both me and my step-sister when she died.


Now my grandmother has just died but we have a problem. I am a single mum of 2 pre-school children and I am not working. I am in receipt of ESA benefits and child support credits. The inheritance I will receive is £20k.


Receiving more than £16k will cut off my benefits entirely and I am slightly aware of the 'deprivation of benefits' thing (although don't know much about it) but I also cannot just keep this money, I want to give my step-sister her £10k.


Is there anything we can do? Currently the estate has not yet been settled and I have received nothing.

calleyw

Bomopu wrote: »

Is there anything we can do? Currently the estate has not yet been settled and I have received nothing.

Nope. No matter what you do it will be seen as deprivation of capital.

The inheritance will only effect means tested benefits.

Once you are below £16K you can start to claim again.

Yours

Calley

bloolagoon

Bomopu wrote: »

My mother died 5 years ago, pre-deceasing my grandmother (her mother). Before she died she asked me to give 50% of the inheritance that I will receive from my grandmother to my step-sister. This made sense to me because if my mother had still been alive she would have got all the inheritance and would have left 50% to both me and my step-sister when she died.


Now my grandmother has just died but we have a problem. I am a single mum of 2 pre-school children and I am not working. I am in receipt of ESA benefits and child support credits. The inheritance I will receive is £20k.


Receiving more than £16k will cut off my benefits entirely and I am slightly aware of the 'deprivation of benefits' thing (although don't know much about it) but I also cannot just keep this money, I want to give my step-sister her £10k.


Is there anything we can do? Currently the estate has not yet been settled and I have received nothing.

You can still give your step sister 10k if you think that's right. You will be treat as deprivation of capital but you can still do this if morally it's what you think is right.

Topcat1982

You will be treated as still having the money if you give it away.

You could spend the inheritance at the normal rate until it goes down to £6k, therefore not affecting means tested benefits, then give her the £6k.

mark55man

so yes. when you have the capital you are expected to support yourself.

However you are (from what has been posted) only a little over the limit. So it should not be too hard to spend what you need to get under the limit - I am sure there are legitimate things that are not regarded as deprivation. Then the moment you are under the 16K barrier you can share with your step sister according to what you think is right

EDIT - this looks interesting only 18 months ago so should still be relevant - plenty more google is your friend http://www.netmums.com/coffeehouse/house-garden-194/money-finance-entitlements-267/1050593-hi-all-just-wanted-bit-advice-if-anyone-can-help-all.html

nikki1520

You should be able to vary the will. I'm sure you can do this- who is the executor? Then the money never passes to you in the first place.mnot quite sure how to go about it, but I know it is possible.google is your friend, followed by a quick chat with a friendly will specialist solicitor

midnight_express

nikki1520 wrote: »

You should be able to vary the will. I'm sure you can do this- who is the executor? Then the money never passes to you in the first place.mnot quite sure how to go about it, but I know it is possible.google is your friend, followed by a quick chat with a friendly will specialist solicitor

This is still deprivation.

Torry_Quine

nikki1520 wrote: »

You should be able to vary the will. I'm sure you can do this- who is the executor? Then the money never passes to you in the first place.mnot quite sure how to go about it, but I know it is possible.google is your friend, followed by a quick chat with a friendly will specialist solicitor

Even if you vary the will you are still treated for benefit purposes as if you still have it

SandraScarlett

Is the £20,000 the amount you will receive after the funeral costs have been paid? You say the estate hasn't been settled, so I wondered if the funeral costs have been taken into account.


Believe me, they are eye watering!


xx

Bomopu

Thanks for all the advice and very quick replies!


£20k is the figure that I will receive. It's rounded to make this illustration easier though. Also, I realise I am going to lose some benefits anyway because I will still be in receipt of £10k, I just don't want to lose my benefits for money which I am giving away (legitimately - i.e. not just to get more benefits)


I wondered if I explained the situation to the DWP and vary the Will so the money was not paid to me at all, would they be likely to accept that I have only received the £10k?


Also, if the Will was varied and not paid to me how would they even find out about it at all?

calleyw

Bomopu wrote: »

I wondered if I explained the situation to the DWP and vary the Will so the money was not paid to me at all, would they be likely to accept that I have only received the £10k?

Also, if the Will was varied and not paid to me how would they even find out about it at all?

No they won't accept it. it is deprivation of capital. As you are doing it you so you can keep claiming benefits.

They have departments that look at wills so they will find and out. And they do check bank accounts as well.

As has been said once you are below £16K you can start to claim again. What so wrong with paying your way for a few a months?

Yours

Calley