Inheritance / stopping benefits?

HappySeagull

Hoping for some advice. In brief, non-specific terms:

Second parent died last year, estate has been sorted, final cheques have been sent out to six children with equal splits.

However, one of these children is on income support as full-time carer for two disabled children. She is worried that her benefits will be stopped - the cheque is for £20k (much more than expected), but the citizens advice bureau have advised you are only allowed £6k in savings and benefits are automatically stopped over £16k. (Even inheritance tax isn't that drastic.)

The question is - can her cheque be cancelled and split directly amongst her children? We have an unsigned hand-written addition to the will saying "We would like to feel that each family would give some to their children (our grandchildren)". I gather a "deed of variation" would cost around £600.

Is there a way for the money to go where the writer of the will intended, without benefit fraud, without the executor committing fraud, and without costing a fortune?

Thanks in advance.

swingaloo

Why would she be worried about her benefits stopping if she has £20k in the bank? Surely it would be reasonable for her to support herself with the cash rather than claiming from the taxpayer.

HappySeagull

swingaloo wrote: »

Why would she be worried about her benefits stopping if she has £20k in the bank? Surely it would be reasonable for her to support herself with the cash rather than claiming from the taxpayer.

Sorry, my original post should have pointed out that she works as "full-time carer for two disabled children". She's not a scrounger.

Yorkshireman99

HappySeagull wrote: »

Hoping for some advice. In brief, non-specific terms:

Second parent died last year, estate has been sorted, final cheques have been sent out to six children with equal splits.

However, one of these children is on income support as full-time carer for two disabled children. She is worried that her benefits will be stopped - the cheque is for £20k (much more than expected), but the citizens advice bureau have advised you are only allowed £6k in savings and benefits are automatically stopped over £16k. (Even inheritance tax isn't that drastic.)

The question is - can her cheque be cancelled and split directly amongst her children? We have an unsigned hand-written addition to the will saying "We would like to feel that each family would give some to their children (our grandchildren)". I gather a "deed of variation" would cost around £600.

Is there a way for the money to go where the writer of the will intended, without benefit fraud, without the executor committing fraud, and without costing a fortune?

Thanks in advance.

It is an offence try and do wihat you are thinking of. She just have to spend some of it until her capital drops.

HappySeagull

Yorkshireman99 wrote: »

It is an offence try and do wihat you are thinking of. She just have to spend some of it until her capital drops.

I've made it explicitly clear that I'm not intending to do anything illegal.

Yorkshireman99

Nevertheless the point is that using DOV in such a case can not legally be done. Forget the idea.

HappySeagull

Yorkshireman99 wrote: »

Nevertheless the point is that using DOV in such a case can not legally be done. Forget the idea.

Is it illegal under probate law or under benefit law?
DOV seems to be accepted for reducing capital gains tax and inheritance tax.
She simply wants the money to go to her three children. Obviously, it wouldn't be done except through a probate solicitor.

unforeseen

For benefit purposes a DOV intended to preserve benefits will be ignored and the person will still be considered as receiving that money and benefits adjusted accordingly.

The hard part then will be persuading DWP that your money has dropped below the threshold to allow benefits again as you don't have it to spend

buildersdaughter

This should really have been written into the will properly, and could have helped the family more. I wouldn't think that the note you mention would count.
I suggest that she contacts one of the major charities that deal with families and children with disabilities, or talks to the children's social worker, and asks their advice before going to a solicitor.
That is because there are things she can spend some of the money on to improve the quality of family life, which would not count as deprivation of assets. What that is exactly depends on what has already been done. It may include some adaptations to the home, a washing machine, sometimes special equipment. That is why she needs specialist advice from people who understand the system.
When the capital dips below £16k she can begin some claim again.

HappySeagull

buildersdaughter wrote: »

This should really have been written into the will properly, and could have helped the family more. I wouldn't think that the note you mention would count.
I suggest that she contacts one of the major charities that deal with families and children with disabilities, or talks to the children's social worker, and asks their advice before going to a solicitor.
That is because there are things she can spend some of the money on to improve the quality of family life, which would not count as deprivation of assets. What that is exactly depends on what has already been done. It may include some adaptations to the home, a washing machine, sometimes special equipment. That is why she needs specialist advice from people who understand the system.
When the capital dips below £16k she can begin some claim again.

Thanks for the helpful advice; will pass it on.

And yes, the will could have been better written, but I guess we don't think of all eventualities!

Yorkshireman99

HappySeagull wrote: »

Is it illegal under probate law or under benefit law?
DOV seems to be accepted for reducing capital gains tax and inheritance tax.
She simply wants the money to go to her three children. Obviously, it wouldn't be done except through a probate solicitor.

Using a DOV to redistribute assets under a will is used quite legally. Using. DOV to evade benefit caps is not. It is regarded as deprivation of assets by the DWP. There may be some room for manoeuvre if money is diverted to aid a disabled person but it is not common. The bottom line is that people on certain benefits can lose them when they receive a windfall. They may subsequently be able to restart a benefit claim if tleir funds drop. However they are not allowed to spend willy nilly to drop the cash.