Inherited income

Susannne

Can you please advise? My mother, 78 years old, receives housing benefit of approximately £2,500 a year. She has inherited about 25k from the death of a family member. She has very little in savings, otherwise.

Due to the value when she receives this, she will no longer be entitled to receive housing benefit help, which seems unfair as she will not gain any benefit from the inheritance until it reduces to below £16,000.

Can you advise how she can use/distribute this inheritance so that she gains some benefit from it. Can she gift it to her children/grandchildren? How will this affect her housing benefit claim?

Browntoa

I've moved this to the benefits board as the experts are here

I'm thinking possibly "deprivation of assets" though

Torry_Quine

Susannne wrote: »

Can you please advise? My mother, 78 years old, receives housing benefit of approximately £2,500 a year. She has inherited about 25k from the death of a family member. She has very little in savings, otherwise.

Due to the value when she receives this, she will no longer be entitled to receive housing benefit help, which seems unfair as she will not gain any benefit from the inheritance until it reduces to below £16,000.

Can you advise how she can use/distribute this inheritance so that she gains some benefit from it. Can she gift it to her children/grandchildren? How will this affect her housing benefit claim?

No she can't give it away or she can but will be treated as if she still has it. It's classic deprivation of assets.

Alice_Holt

It is likely her local council will decide she has deliberately deprived herself of capital in order to maintain HB / CTr payments by gifting money to you or your children.
They will then assess her for HB as if she still had that capital / income - google "notional capital and means tested benefits".

She must tell her LA of her change of circumstances.

Is she in receipt of Pension Credit?

I would suggest she uses the inheritance to enable her to join some social groups / clubs.
For taxi costs and costs of activities etc, and build a supportive group of friends who will help her look after her interests.

borkid

Susannne wrote: »

Can you please advise? My mother, 78 years old, receives housing benefit of approximately £2,500 a year. She has inherited about 25k from the death of a family member. She has very little in savings, otherwise.

Due to the value when she receives this, she will no longer be entitled to receive housing benefit help, which seems unfair as she will not gain any benefit from the inheritance until it reduces to below £16,000.

Can you advise how she can use/distribute this inheritance so that she gains some benefit from it. Can she gift it to her children/grandchildren? How will this affect her housing benefit claim?

Independence/ paying ones way for a few years and no form filling is something positive

TELLIT01

Susannne wrote: »

Can you advise how she can use/distribute this inheritance so that she gains some benefit from it. Can she gift it to her children/grandchildren? How will this affect her housing benefit claim?

She cannot give away the money in order to retain entitlement to Income Related benefit. That would be treated as deprivation of capital. End of story.

If she does she will be treated as if she still has that money for the purpose of calculating benefit entitlement.

She can legitimately replace worn out items in the home without any worry.

poppy12345

Susannne wrote: »

Can you please advise? My mother, 78 years old, receives housing benefit of approximately £2,500 a year. She has inherited about 25k from the death of a family member. She has very little in savings, otherwise.

Due to the value when she receives this, she will no longer be entitled to receive housing benefit help, which seems unfair as she will not gain any benefit from the inheritance until it reduces to below £16,000.

Can you advise how she can use/distribute this inheritance so that she gains some benefit from it. Can she gift it to her children/grandchildren? How will this affect her housing benefit claim?

Why is it unfair? Housing benefit is tax payers money and £25,000 is a lot of money. Most people would give anything to have that kind of money.

kingfisherblue

I can't understand why you think that your mother won't have any benefit from receiving the inheritance - she certainly wouldn't if she gave it away! I know that when my mum received some money (nowhere near this amount), she decided to refit her kitchen (own home) because it hadn't been updated in thirty years and badly needed repair or replacement.

You mum can now pay her own rent, plus she can legitimately purchase replacement carpets, white goods, or other household items if necessary. She should keep receipts for any large purchases though. She might also be able to buy a pre-paid funeral plan - sounds terrible, but it would mean that her family wouldn't have to worry about it when the time comes. She should take advice before spending any large amounts though.

Personally I think that your mum is in an enviable position. Surely paying her own bills when you can is important, rather than relying n tax payers when you have inherited such a large amount?

xylophone

It is obvious from your post that your mother's " significant operative purpose" in giving away the cash would be "to retain entitlement to a means tested benefit".

http://safeadvice.org.uk/main/notcap.php

parkrunner

Susannne wrote: »

Can you please advise? My mother, 78 years old, receives housing benefit of approximately £2,500 a year. She has inherited about 25k from the death of a family member. She has very little in savings, otherwise.

Due to the value when she receives this, she will no longer be entitled to receive housing benefit help, which seems unfair as she will not gain any benefit from the inheritance until it reduces to below £16,000.

Can you advise how she can use/distribute this inheritance so that she gains some benefit from it. Can she gift it to her children/grandchildren? How will this affect her housing benefit claim?

Benefits are for people who are in need, with £25,000 in the bank your mother won't be in need.

Teahfc

🤐 Can she not go on that dream holiday now ? Or will she be spending your inheritance is that why you are saying it’s Unfair?