Benefits and Inheritance - when do they stop?

Pricivius

I've seen a few threads relating to this issue but I've been unable to find any definitive answers - maybe there aren't any!

It's an entirely hypothetical query: If I inherit £100,000 in my grandma's will, when will the various benefit agencies (HMRC, DWP, LA) deem me to have received it so that my means-tested benefits stop?

Is it when the money hits my account, or when the executor is ready to distribute or when probate is granted or some other date?

When am I obliged to inform the benefit agencies of my change in circumstances? Upon learning of the inheritance or upon payment or some other time?

Thank you in advance.

Ames

It's when you get the money, which should be within days of the executor being ready to distribute.

I told them when my mum died that I'd be getting an inheritance. My benefits advisor took over from then, keeping the DWP up to date with what was happening with the estate as it took four and a bit years for me to actually get the money, mainly because of problems selling the house.

teddysmum

If you advise them when you know the date you will you actually get the money, you should be less likely to have benefit payments made, which you have to return.

konark

Ames wrote: »

It's when you get the money, which should be within days of the executor being ready to distribute.

I told them when my mum died that I'd be getting an inheritance. My benefits advisor took over from then, keeping the DWP up to date with what was happening with the estate as it took four and a bit years for me to actually get the money, mainly because of problems selling the house.

So that's within a few days of 4 and a bit years.

I'd tell them nothing until the money hit my account, you can't bank on it till then, your grandma might not have £100,000 , or she may have large debts.

baza52

When I got my cheque from the solicitor I waited until it cleared in my bank and notified them the same day.

Ames

In my case I was administrator, so it was essential everything was transparent and above board. Otherwise it could have looked as though I was deliberately slowing things down to hang on to benefits. There's nothing to lose by being upfront, benefits won't be affected until the money is released.

tomtom256

You can be deemed as having it once probate has been awarded.

As you are entitled to it upon application, regardless of any other issues.

LA's tend to be more leniant with dates then HMRC/DWP but advise them of the situation and let them decide.