Inheritance and benefits

Swash

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.

I agree. I think it's a waste of my money paying benefits to people who don't wish to contribute in any way, when they have the money to do so.

My responsibility to stand on my own two feet and pay my own way is a nuisance
Maybe I'm just old fashioned.

Morglin

Nikki-s wrote: »

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

You would need to see a solicitor (or any legal bod who is acting as executor for your Nans estate), to do a Deed of Variation, as they can get complicated.

http://www.inbrief.co.uk/estate-law/deed-of-variation.htm

Lin

Mojisola

Morglin wrote: »

You would need to see a solicitor (or any legal bod who is acting as executor for your Nans estate), to do a Deed of Variation, as they can get complicated.

http://www.inbrief.co.uk/estate-law/deed-of-variation.htm

A DOV in this case would count as deprivation of capital and cause the mother problems with her benefits.

GirlFromMars_2

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.

I think the problem in the case of inheritance is that the person who leaves the bequest believes the recipient can use the money exactly as they wish, or in a way that has been agreed by the family in advance.

I'm sure the OPs grandmother's intentions weren't to make things more stressful for her daughter. And I'm sure the thought this would be a lovely bonus nest egg as it would be for anyone not in receipt of benefits.

In reality dealing with the DWP is very stressful, especially for someone with mental health problems, and this bequest will make things more complicated. £30K isn't enough to live off forever, and assuming they recipient isn't able to go back to work soon, the DWP will want to know how this money has been spent.

GirlFromMars_2

Nikki-s wrote: »

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

As you have already been told your mother cannot give away her money without it being classed as Deprivation of Capital. The same applies to a Deed of Variation.

Your mother can however use the money to improve her life, including replacing worn out items for new, buying a car or buying a home to live in. She should make sure to document her spending so that when her capital falls to £16K and she is able to receive income related benefits again she can tell them where the money went.

Your mother's inheritance probably wouldn't be enough to buy a home outright, but there are shared ownership options that may suit your mother with a Housing Association designed for people with mental health problems.

Hopefully you can help your mother navigate the benefits system and use the money to improve her life in a way that your grandmother would have wanted.

System

Depending on the Op's mother's MH problems i can understand why the OP might be worrying.

I have Bipolar and honestly i couldn't tell you what i spent most of my 5k inheritance on To a degree it was living costs and bills but some of it i don't have a clue as i was manic and god knows what it got spent on, so if the Op's mother has similar issues i can see why it might not last long. I hate to think what my grandparents would think of me.

Morglin

Mojisola wrote: »

A DOV in this case would count as deprivation of capital and cause the mother problems with her benefits.

Not always as I have heard of this being done before the Will is actually finalised, and it had no impact - but, it does need a solicitor to handle it, as it does when done for tax avoidance purposes.

Lin

Mojisola

Morglin wrote: »

Not always as I have heard of this being done before the Will is actually finalised, and it had no impact - but, it does need a solicitor to handle it, as it does when done for tax avoidance purposes.

Possibly because the DWP didn't find out about it?

I'd be very surprised if the DWP was notified that someone on means tested benefits was giving away an inheritance and continued to pay them those benefits.