Inheritance and benefits

Nikki-s

Hello all I have been scouring the web most of the afternoon on behalf of my mum so I just thought I would post here to hopefully find some advice!

My nan passed away recently and she has stated in her will that her house is to be sold and the money split between her 5 children, therefore my mum stands to receive between 30-40 grand inheritance.

My mum has mental health issues and so relies on the benefit and housing systems to live. I understand the limit where they cut off the benefits is 16,000 so when the money enters her account her benefits will be taken away and so she will have to live off the inheritance money and to be honest it won't last very long and really won't improve her quality of life however my nan bless her thought this would help mum as she had always struggled but it seems she didn't take into account her benefits would stop

My mum planned to give me and my sister some of the money when she inherits it so my biggest question is can she give it to us or will it be classed as fraud and deprivation on Capitol? If she can prove she is giving it to us and not spending it?

Also I have heard of a document called deed of variation? Iv heard it can be used
To change the amount my mum inherits and she can pass on a share of to her children.... But will this money in the DWPs eyes still be classed as hers?? She is stressing over it as well as grieving for her mum and I just want to be able to help!

It's sad really that my nan is just trying to help her but in a way it's ended up the other way

Any advice welcome

Thanks so much xx

I have heard

tomtontom

Surely nan is helping mum by giving her the opportunity to have some independence? I'm not sure how it is more helpful to give it to you?

In answer to your questions either plan will be deemed intentional deprivation of capital. As such she will be treated as if she still has the money.

cloudydays

It must be satisfying to know you have enough money in the bank not to rely on benefits.

Your mother cannot give the money away as that will be seen as deprivation of capital. When the money hits her account she will have to declare it.

marliepanda

So lovely Nan wanted to help your struggling mum, by giving you money? Not sure how that helps struggling mum.

Why on earth would 24grand not last long? It should last at least a couple of years.

What you really mean is 'why should mum spend this money on stuff she's already getting for free.'

iammumtoone

Am I the only one who feels for the OPs mother and her late mother?

Whist I agree she should not be able to claim benefit with that amount of money. I do think she should be allowed to keep a percentage of it to spend how she pleases and live off the rest. She will have to use the whole lot to live off and not be able to spend any on herself as a treat what her mother intended.

Her mother left her that money in the hope it would make her life more comfortable. Many who are more 'savvy' would have probably left the money to someone else they trusted who would then spend it on what she wanted, meaning she could keep claiming benefits.

marliepanda

Maybe, until 'treats for mum' became 'money to children'

She can spend it 'how she wants' as long as it's reasonable. Treats could be possible.

Giving it to her children is not reasonable.

tomtontom

iammumtoone wrote: »

Am I the only one who feels for the OPs mother and her late mother?

Whist I agree she should not be able to claim benefit with that amount of money. I do think she should be allowed to keep a percentage of it to spend how she pleases and live off the rest. She will have to use the whole lot to live off and not be able to spend any on herself as a treat what her mother intended.

Her mother left her that money in the hope it would make her life more comfortable. Many who are more 'savvy' would have probably left the money to someone else they trusted who would then spend it on what she wanted, meaning she could keep claiming benefits.

She can have up to £6,000 to do with as she wants. She can also use any of the money to reasonably improve her life, perhaps through counselling or someone to help her with day to day living.

Poppie68

Any income related benefits will be lost....giving money away will be seen as deprivation but money spent on a new washing machine for example maybe allowed.
Once she is down to the last £6000 she could reapply for benefits and still be left with a nice little nest egg as long as the money hasn't been given away or spent in a frivolous
fashion.

iammumtoone

Just out of interested what would someone have to do it this situation.

Obviously food, bills, rent etc is acceptable spending but as in the example above say she wanted to purchase a washing machine and other items in her home that needed replacing, would she have to ring and ask permission every time if is was ok?

It must be quite a stressful situation to be in not knowing what and what not you can spend on and worrying if you have done wrong therefore leaving yourself venerable to no benefits once the money has gone due to deprivation.

missbiggles1

Poppie68 wrote: »

Any income related benefits will be lost....giving money away will be seen as deprivation but money spent on a new washing machine for example maybe allowed.
Once she is down to the last £6000 she could reapply for benefits and still be left with a nice little nest egg as long as the money hasn't been given away or spent in a frivolous
fashion.

She can reapply for benefits when the capital goes down to £16k - at that point benefits are reduced on a sliding scale.

marliepanda

iammumtoone wrote: »

Just out of interested what would someone have to do it this situation.

Obviously food, bills, rent etc is acceptable spending but as in the example above say she wanted to purchase a washing machine and other items in her home that needed replacing, would she have to ring and ask permission every time if is was ok?

It must be quite a stressful situation to be in not knowing what and what not you can spend on and worrying if you have done wrong therefore leaving yourself venerable to no benefits once the money has gone due to deprivation.

No she would not.

She could buy a car. But not an Audi (for example)

She can buy an average priced washing machine.

She can't go out and buy all AGA or range master items. Replacing stuff at an 'average' cost is fine. No need to ring up and ask at all