Inheritance / stopping benefits?

HappySeagull

Yorkshireman99 wrote: »

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 ge able to restart a benefit claim if tleir funds drop. However they are not allowed to spend willy nilly to drop the cash.

Thanks for the extra detail. Yes, that's the conclusion I've come to from other enquiries. She needs to speak to a benefits expert.

SevenOfNine

The DoV we had done recently cost £400, but we weren't depriving ourselves of assets & not on benefits.

YM99 has summed up pretty accurately why a DoV won't work for this person. A solicitor worth their salt would refuse to do one.

74jax

Could she maybe bank the 20k in a new account and set up a standing order to her usual account for the amount of the benefit that will be stopped. That way she is no worse off?

Maybe if the 20k is 'out of sight' in another account, she can continue as normal as her money will be the same and will be easier for her?

konark

Does she have any debts which need repaying? Or household appliances that need replacing? or is her car on its last legs (wheels?)

She can soon get back under the £16,000 cut-off.

unforeseen

Paying off debts that do not need to be paid off as a lump sum e. g. A loan, can also be considered deprivation

Yorkshireman99

Likewise sudden replacing of a number of household appliances or a car will be seen by the DWP will very likely be seen by the DWP as asset deprivation.

Red-Squirrel_2

I think this is a really good time to think about how a lump sum could be used to benefit the family in a way that wouldn't be possible on a low income as a carer. Do they own the house they live in? If so what sort of condition is it in? Would it be sensible to spend the cash on repairs or updates to ensure it stays in good condition for many years to come? Is there any specialist equipment that would benefit the children but that would normally be unaffordable? How old are the children and are they likely to still need care as they get older and bigger? If so would investing in a bigger car suitable for transporting full size wheelchairs be an idea?

Red-Squirrel_2

Yorkshireman99 wrote: »

Likewise sudden replacing of a number of household appliances or a car will be seen by the DWP will very likely be seen by the DWP as asset deprivation.

Would that not depend on the necessity/rationale of the purchases?

Malthusian

HappySeagull wrote: »

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

No-one said she was. Everyone who is on benefits needs them, that's why they're there. The point is that she doesn't need them for the moment as she has just inherited £20k.

With some planning the problem (that £4k will effectively be inherited by the Government) could have been avoided, but no point crying over spilt milk.

unforseen wrote:

Paying off debts that do not need to be paid off as a lump sum e. g. A loan, can also be considered deprivation

Something like a credit card or an overdraft that is repayable at any time and should be repaid as soon as funds are available would be fine, surely? I can see how paying off a mortgage or another loan with a fixed term would be viewed as deprivation.

macman

A DOV would also require the agreement of all the beneficiaries-not just your sister. The unsigned note is not a valid part of the will: any redistribution to the grandchildren is up to the beneficiaries.