Inheritance and on ESA/PIP

cheruk

My best friend has just passed away, leaving me approximately £45,000.

I am also on long-term ESA in the Support group and on PIP. My friend has stipulated in her will that I am to be paid £1,000 every 4 months to help to keep my home running.

Can anyone please advise how I stand with DWP?

Thanks in anticipation

Chrissy

NYM

I can't personally offer any advice but I'm sure that someone will be along shortly that will be able to help.

I'm sorry about your friend but what a lovely gesture she made to you.

GlasweJen

Is the money in a trust or does the will stipulate that a trust is to be set up?

Are there any provisos in the will/trust for you to access the money under other circumstances?

Who is to administer the money/trust?

cheruk

No her brother has been instructed to administrate the bequest, I have been asked to set up a bank account specifically to receive the money. every four months They decided against setting up a trust because of the cost.

cheruk

This is relevant section of the codicil to her will. I have removed names (I am XXX)...

"XXX, bequeathed 20% of my estate: I ask for my brother X to establish a bank or building society account for the cash balance due. Thereafter, by standing order, the sum of £1000 to be sent to a bank account of XXX's choosing, every four months, until the total balance is expired. Should XXX not survive the whole period to expiry of the accounts fund, any remaining balance is to be shared equally between my nephew and niece X and X. "

Torry_Quine

PIP isn't affected by any other income. its the ESA contribution or income based. IF income based then this money will be taken into account.

TELLIT01

Torry_Quine wrote: »

PIP isn't affected by any other income. its the ESA contribution or income based. IF income based then this money will be taken into account.

If the OP only has access to the money at the rate of £1k every 4 months it would seem at first glance that there isn't any issued as it's unlikely to take savings to over £6k at any time.
The questions the Decision Makers will need to consider are whether or not the OP is the "beneficial owner" of the entire £45k, or if the codicil has been created specifically to enable the OP to continue to claim benefits.
From the comment in the OP which seems to connect the fact of being on benefits with the friend's codicil, that would appear to be a possibility.

missbiggles1

TELLIT01 wrote: »

If the OP only has access to the money at the rate of £1k every 4 months it would seem at first glance that there isn't any issued as it's unlikely to take savings to over £6k at any time.
The questions the Decision Makers will need to consider are whether or not the OP is the "beneficial owner" of the entire £45k, or if the codicil has been created specifically to enable the OP to continue to claim benefits.
From the comment in the OP which seems to connect the fact of being on benefits with the friend's codicil, that would appear to be a possibility.

But surely that will count as additional income of around £60pw for means testing purposes?

getmore4less

The capital is in a trust(created by the will) and is gifted at a specific rate.

Are gifts income for benefits purposes?

pmlindyloo

cheruk wrote: »

This is relevant section of the codicil to her will. I have removed names (I am XXX)...

"XXX, bequeathed 20% of my estate: I ask for my brother X to establish a bank or building society account for the cash balance due. Thereafter, by standing order, the sum of £1000 to be sent to a bank account of XXX's choosing, every four months, until the total balance is expired. Should XXX not survive the whole period to expiry of the accounts fund, any remaining balance is to be shared equally between my nephew and niece X and X. "

Was the codicil signed and witnessed?

I think you need legal advice about this especially since it begins with 'XXX bequeathed' and then 'I ask for my brother.......'

A bit messy to be honest.

GlasweJen

This will need a lawyer. the will basically says 20% of her estate belongs to you, she wants her brother to hold it for you [decision maker would ask why, is it to allow you to keep claiming IB benefits], but her niece and nephew would inherit if you died.

Now if the money is yours then it should go to your estate upon death. It sounds like she wants her brother to be a trust holder without the legal set up and the DWP may or may not accept that.

You need a lawyer to ascertain if this is a trust, if the money is yours and to protect you should the brother run off with your £45K

ETA did a professional write this will?