Inheritance and benefits

seven-day-weekend

BigAunty wrote: »

The OP could try to find the DWP deprivation of capital guide for decision makers on the internet. This is the staff manual for DWP workers who investigate issues with claims. It's a dull read but gives the OP an idea of what staff look for when a person on benefits comes into capital and then claims benefits again, the type of spending which is seen as dubious.

It's a complex area, and people often overlook the fact that the DWP have to prove intentionality on the part of the claimant, but gifting capital to others when a claimant is aware of capital limits is very clearly disallowed.

I personally feel its a little sad when long-term benefit claimants come into a large sum of money and suddenly having to pay their own rent, council tax and groceries from their nest egg is seen as a nuisance and waste of their money.

Yes, it's what those of us who don't claim any Benefits have to do all the time - pay our way with our own assets. Long-term benefit claimants are not used to it and so it seems like a waste of money.

baza52

Ops mum will be able to buy a car and tax and insure it, she could also use the money to re decorate here house, new carpets, new tv etc.
She could also replace kitchen appliances and anything else that's worn out including new clothes.
Oh and a holiday.

Just keep records and receipts for what the money is used for.

wiltsguy_2

marliepanda wrote: »

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

hit the nail on the head!!

TBagpuss

OP, if your mum is stressd by the thought of managing the money, you could discuss with her whether she wwould like to set up a power of attorney so that you or another family member can help manage the money for her on a day-to-day basis.
It would also be appropriat to consider whether there is anything which would improve her quality of life or abilit to manage, which would be a good use of the money.

As others have said, she can't simply give it away to avoid losing benefits, but provided she is reasonable in her use of the money, and keeps records so she can show where it has gione of she is ever asked, she will be able to keep at least £6,000 (£10,000 if she is over pension age) before it affects benefits, and it will only be partially taken into account between £6 K and £16K.

t0rt0ise

seven-day-weekend wrote: »

Yes, it's what those of us who don't claim any Benefits have to do all the time - pay our way with our own assets. Long-term benefit claimants are not used to it and so it seems like a waste of money.

I can understand it a bit. If you work, as you and I do, and pay our own way, if we come into some money that is extra for us and it must feel good (it hasn't happened to me!) but if you're scrimping on benefits and come into some money, it isn't extra so you feel no better off.


Of course they are slightly wrong because they *can* spend it on some luxuries and new things and maybe give some small sums away as Christmas presents. But still I can see their point of view.

macman

A deed of variation can be used but will require the agreement of all 5 beneficiaries-so you need legal advice on this. If so she won't be 'passing it on', as she will never have inherited it. You have two years from the date of death to do this.
This assumes that your mum has mental competence to make such a decision, since she is effectively signing away her inheritance: the solicitor will need to be sure of that before drawing up such a deed.

p00hsticks

macman wrote: »

A deed of variation can be used but will require the agreement of all 5 beneficiaries-so you need legal advice on this. If so she won't be 'passing it on', as she will never have inherited it.

This isn't correct - it will require her to give her permission to forgo her inheritance, which to all intents and purposes (certainly in DWP's eyes) would be exactly the same as her inheriting the money and then giving it away.

Mojisola

macman wrote: »

A deed of variation can be used but will require the agreement of all 5 beneficiaries-so you need legal advice on this.

If so she won't be 'passing it on', as she will never have inherited it.

As p00hsticks says - this would be deprivation of capital.

The first part is also wrong - the only people who need to agree to a DOV are the beneficiaries adversely affected by it. If one person wants to give away their inheritance, it's nothing to do with the other beneficiaries.

seven-day-weekend

t0rt0ise wrote: »

I can understand it a bit. If you work, as you and I do, and pay our own way, if we come into some money that is extra for us and it must feel good (it hasn't happened to me!) but if you're scrimping on benefits and come into some money, it isn't extra so you feel no better off.


Of course they are slightly wrong because they *can* spend it on some luxuries and new things and maybe give some small sums away as Christmas presents. But still I can see their point of view.

They are still better off than before they had it and can keep £6k without any loss of Benefits whatsoever, and even up to £16k they are still entitled to some.

I agree it would be nice to be able to keep all of it; however if the State pays your way then it's only right that you should take as little as possible.

And it does not affect some Benefits at all, i.e State Pensions or those for disabilities.

Podge52

Just out of curiosity.

If somebody is on benefits of say £200 per week and they inherited £16000 but gave £1000 away thus depriving themselves of £1000, would they be eligible for benefits again after 5 weeks.