Asset received in a will, worried about impact on benefits

time2deal

Hi,
Sorry, this isn't for me, but I'm hoping for some help.

My friend has inherited 1/4th of a house and some assets, which is probably about £30k. Most of which is in the house value, about £28k.

She's on benefits for a disability, and is concerned that the asset will mean she loses her benefits, even though she can't actually get the cash for the house. The other 3/4 is owned by siblings and her dad who don't want to sell for the moment.

I've told her that I assume it wouldn't impact her, as the DWP surely won't stop her cash benefits when she just has an asset which she can't sell. At the moment she is refusing to sign the papers to transfer the asset into get name, but I worry that the DWP will see this as deprivation of assets.

This must be a common problem with inheritance. Does anyone know how this is dealt with. With all the procrastination its been almost 2 years since her mums death and she's getting lots of pressure to sign as she is preventing the estate from being settled. But it's so hard to get advice!

Thanks in advance.

elsien

Has she told them that if they don't want to sell they need to buy her out?
What is their response when she asks them how else she's meant to live when her benefits stop?
i can't see the DWP ignoring a 30K inheritance, and nor should they. She does indeed need to be aware of deprivation of assets. Your friend may need legal advice. She could try a free half hour with a solicitor as a starting point.

Ames

Are any of the siblings or father disabled?

Has she actually inherited a quarter of a house, or a quarter of the estate which includes a house? Has the executor finished dealing with the estate, ie has all the paperwork been finalised so she's officially part owner of the house?

Mojisola

time2deal wrote: »

My friend has inherited 1/4th of a house and some assets, which is probably about £30k. Most of which is in the house value, about £28k.

If the other beneficiaries are willing, the distribution can be varied so that she receives cash assets up to a quarter of the total estate and the others take on the house between them.

That way she will have the cash to live off and can stop any means tested benefit claims.

time2deal

To answer a few questions. It is a quarter of an estate and the paperwork isn't complete as she refuses to sign what's needed. Its overseas so it's a bit complex but I know she is holding it all up.

No specific disability in the dad, but he is very elderly and gets the age pension. The law in the country he is in protects a widower so he can't be forced to sell the family home on the death of his spouse.

There was talk of finding a way to get her the cash, but she just doesn't want to deal with it, and anyway that option is currently off the table. Even if they did agree to sell it would take a while. Nothing can be done or even started now while the title to the property is still in the mums name. Sounds a bit of s legal mess.

My worry is that she may be deemed to have already received it and once the DWP find out they fine her! I know DWP will claim from your estate in some cases if you die, can they also do that when your are the beneficiary?

marliepanda

Her refusing to sign doesn't acutally make much difference as its hers, just refusing to sign will not 'help' anyone.

If the laws of that country state he has a life interest then I do not think this will affect her benefits as until he dies she hasn't really got anything.

Ames

I know that if someone disabled lives in the property benefit rules say that it can't be sold, so isn't counted as capital. Something at the back of my mind is saying it's the same for elderly people but I'm not sure, and it might be over a particular age.

If it can't be sold then I don't think it can be counted - but it would be worth getting proper advice from CAB.

If she's holding up paperwork because of benefits that's fraud. (Based on legal advice I was given when I inherited whilst on benefits).

This is quite complicated, especially since the property is abroad with different laws to ours. I think she needs to speak to CAB.

pmlindyloo

Which benefits is she receiving?

Hopefully we can then find the relevant information for you to show her.

TELLIT01

If the father has a 'lifelong interest' in the property. i.e. he is allowed to continue to live there, it shouldn't have any effect on her benefits at this time. It will only become a factor after his death.