Inheritance

SPatterson

Hello and thanks for reading this, if you do.

My mother died a few months ago, and left me an amount of money. I'm wanting to notify whoever I need to once I get confirmation of when the inheritance is incoming, as I currently receive income-based ESA (support), PIP, housing benefit and council tax support. My partner, who cares for me full-time, receives carer's allowance.

Unaware of the conditions to do with inheritance when receiving benefits, I've been researching it online and want everything to be above board. The amount I'm due is a 5-figure sum over the amount of £16,000 - which I'm aware is the limit for savings in order to keep receiving payments. I'm aware of the term "deprivation of capital", and know of a few examples of it. I agree with what I've read wholeheartedly, but know that it's kind of a grey area.

I'm basically here typing this out on MSE as I want to know the answers to some questions:

Can I pay, from my inheritance, for any of the following?
- My mother's funeral in full, rather than split the cost with my father who has no savings and is struggling to make ends meet
- Reimburse my father for the sum of around £1,000, for loans over the past few years.
- Put money straight into JISA's for both of my daughters. I was thinking £10,000 split between them, however I'm not sure if there's a limit.
- Pay off a year's rent on my home (a council property) in advance. I would guess at this being unacceptable - but I merely want to show that I'm not wanting to bleed the system for all it's worth. Bringing me on to the second point...

If, after being able to use the inheritance for the means above, if allowed, and I end up within the £6k-16k bracket, how would my benefits be affected?
- I understand there is a rule for savings between £6,000 and £16,000. How each £250 over the £6,000 limit would reduce my HB by £1 each week. Is this correct, and does it also apply to ESA and council tax support?
- If not, how are they affected?

This is a difficult time for me at the moment as I have my own health problems mounting up. With this unexpected inheritance, I merely want to do the right thing, i.e. put towards my mother's grandchildren's futures, as she wished. She was never bothered about doing a will, it was all spoken wishes.

Thanks for reading, and especially if you can offer some answers.

elsien

The funeral costs should come out of her estate before any bequests are made. Who is the executor?

I don't think you'd get away with giving your daughters 10k between them to get below the benefits limit, if this hasn't been left to them in any will.

ETA - just seen there isn't a will. Who is administering the estate and why is it coming to you not to dad? Are the intestacy rules being followed?

kingfisherblue

SPatterson wrote: »

Hello and thanks for reading this, if you do.

My mother died a few months ago, and left me an amount of money. I'm wanting to notify whoever I need to once I get confirmation of when the inheritance is incoming, as I currently receive income-based ESA (support), PIP, housing benefit and council tax support. My partner, who cares for me full-time, receives carer's allowance.

Unaware of the conditions to do with inheritance when receiving benefits, I've been researching it online and want everything to be above board. The amount I'm due is a 5-figure sum over the amount of £16,000 - which I'm aware is the limit for savings in order to keep receiving payments. I'm aware of the term "deprivation of capital", and know of a few examples of it. I agree with what I've read wholeheartedly, but know that it's kind of a grey area.

I'm basically here typing this out on MSE as I want to know the answers to some questions:

Can I pay, from my inheritance, for any of the following?
- My mother's funeral in full, rather than split the cost with my father who has no savings and is struggling to make ends meet Funeral costs usually come out of the estate before any beneficiaries are paid
- Reimburse my father for the sum of around £1,000, for loans over the past few years. Is there any evidence of these loans?
- Put money straight into JISA's for both of my daughters. I was thinking £10,000 split between them, however I'm not sure if there's a limit. Almost certainly Deprivation of Capital
- Pay off a year's rent on my home (a council property) in advance. I would guess at this being unacceptable - but I merely want to show that I'm not wanting to bleed the system for all it's worth. Bringing me on to the second point...

If, after being able to use the inheritance for the means above, if allowed, and I end up within the £6k-16k bracket, how would my benefits be affected?
- I understand there is a rule for savings between £6,000 and £16,000. How each £250 over the £6,000 limit would reduce my HB by £1 each week. Is this correct, and does it also apply to ESA and council tax support?
- If not, how are they affected?

This is a difficult time for me at the moment as I have my own health problems mounting up. With this unexpected inheritance, I merely want to do the right thing, i.e. put towards my mother's grandchildren's futures, as she wished. She was never bothered about doing a will, it was all spoken wishes. Unfortunately, if your mother's wishes were not specified in a Will, then it is likely that any money given by you to her grandchildren will be classed as Deprivation of Capital.

Thanks for reading, and especially if you can offer some answers.

Answers in red. I'm not an expert on inheritances, but presumably as there was no Will, you have the relevant documentation and have inherited as next of kin? I assume that she was not married to your father or anyone else?

SPatterson

Hello. I appreciate the quick response.

My parents never married, and seperated when I was young. However, they remained good friends and my father would help her during what was many years of worsening health.

There was no Will, and I was her only child. The money is coming from a private pension, which I was only made aware of last week.

I'm guessing there is no amount I could put into JISAs for my daughters, from the inheritance. I really wish my mother had done her will. She did get coaxed into doing one following nearly dying a few years ago, but it turned out she'd just written some things on a sheet of paper. And that was disposed of.

Evidence of loans, no. It's sadly just a simple thought that my father's loyalty and continued scraping of his barrel deserved repayment. I can understand if there'd need to be proof somehow though. Of that, there is none.

The funeral hasn't been paid for yet. It was only just billed to us last week, coincidentally.

I'm naturally grateful and touched, for being left these funds by my Mum. However I don't want to have my claims for benefits stopped or paused, and then have to be re-assessed. I've had years of heavy-handed treatment and many assessments. Just want to do whatever is best that causes the least hassle.

Thanks again.

poppy12345

SPatterson wrote: »

Hello. I appreciate the quick response.

My parents never married, and seperated when I was young. However, they remained good friends and my father would help her during what was many years of worsening health.

There was no Will, and I was her only child. The money is coming from a private pension, which I was only made aware of last week.

I'm guessing there is no amount I could put into JISAs for my daughters, from the inheritance. I really wish my mother had done her will. She did get coaxed into doing one following nearly dying a few years ago, but it turned out she'd just written some things on a sheet of paper. And that was disposed of.

Evidence of loans, no. It's sadly just a simple thought that my father's loyalty and continued scraping of his barrel deserved repayment. I can understand if there'd need to be proof somehow though. Of that, there is none.

The funeral hasn't been paid for yet. It was only just billed to us last week, coincidentally.

I'm naturally grateful and touched, for being left these funds by my Mum. However I don't want to have my claims for benefits stopped or paused, and then have to be re-assessed. I've had years of heavy-handed treatment and many assessments. Just want to do whatever is best that causes the least hassle.

Thanks again.

There's no ways to avoid that with a large sum of money that takes you over the £16,000 maximum for Income related benefits. Giving your money away to your children will definitely been seen as deprivation of capital and you will be classed as still having that money. Either way you won't be entitled to Income Related benefits.

Tom99

[FONT=Verdana, sans-serif]If your mother left no will and you are the only child then I think the funeral costs come out of the estate before the balance is paid to you. Why do you think your father might be liable for 50% of these costs?[/FONT]

SPatterson

The 50% split for the funeral costs was a verbal agreement between us. We're both not well off, but are the closest two people to her. She left very little money in her estate, apart from this surprising pension. My father knew nothing about it, and it's from way back when they were a couple.

kingfisherblue

SPatterson wrote: »

The 50% split for the funeral costs was a verbal agreement between us. We're both not well off, but are the closest two people to her. She left very little money in her estate, apart from this surprising pension. My father knew nothing about it, and it's from way back when they were a couple.

As it was from when they were a couple, are you sure that you are the named beneficiary? Pensions usually have a named person, and even though they weren't married, your mum might have named her partner as they were still together at the time.

SPatterson

Hi. They've told me that there was no named person, and that as I'm the legal next of kin, I am the sole beneficiary. For what its worth, she had her national insurance contributions paid straight into this pension.

Just to add, regarding the initial plan for my daughters to receive some of this inheritance when they're old enough - my youngest has a JISA, but my oldest's is actually a CTF stakeholder. Not sure if this makes any difference at all.

Another thing I pondered using some of the inheritance for was driving lessons for my partner, and then a cheap car. I doubt this would be acceptable, following what I've already read from the responses in this thread. I struggle to get around due to a chronic condition, and normally would have no chance to consider us getting our own transport. Would just be a great help for my recovery, plus hospital appointments and such, which I keep having to miss.

Mojisola

SPatterson wrote: »

Another thing I pondered using some of the inheritance for was driving lessons for my partner, and then a cheap car.

I doubt this would be acceptable

It would be okay to do this - as would buying any equipment that would make your life easier or replacing old furniture or white goods, etc - as long as you buy mid-price items rather than top of the range stuff that would give the impression that you are spending money just to be able to reclaim benefits.

Keep all receipts for new items.

Ames

skcollobcat10 wrote: »

What about using motability for your transport? That would be cheaper option as you only have to provide fuel.

And pay £55 a week. It's possible that insurance costs for a new driver would make Motability cheaper for the OP but for most people it's an expensive way of funding a car. About nine grand over the lease period with nothing to show for it.

OP, as others have said, driving lessons are unlikely to be deprivation. But it doesn't matter what type of account your child has, it's the giving away of money that's deprivation, not where it's going to.