Inheritance and benefits

calcotti

I would recommend that you ask in advance how paying off your mortgage will be treated. Then you will know what to expect and whether or not you can continue to receive UC (or reclaim, depending on timing).

Spoonie_Turtle

calcotti wrote: »

I would recommend that you ask in advance how paying off your mortgage will be treated. Then you will know what to expect and whether or not you can continue to receive UC (or reclaim, depending on timing).

Or if you don't want to contact DWP just yet, in case you speak to someone undertrained who messes up for you, you could contact your local CAB for advice, or perhaps any other local benefits advisors (our local disability resource centre has them, for instance). But contacting DWP might be best - perhaps even in writing so there's no misunderstanding and proof of what exactly you've asked.

Alice_Holt

Spoonie_Turtle wrote: »

Or if you don't want to contact DWP just yet, in case you speak to someone undertrained who messes up for you, you could contact your local CAB for advice, or perhaps any other local benefits advisors (our local disability resource centre has them, for instance). But contacting DWP might be best - perhaps even in writing so there's no misunderstanding and proof of what exactly you've asked.

Really don't think it is useful to contact an advice agency. Calcotti has already supplied the OP with the relevant UC regulation.
What the OP ideally needs (IMO) is a written determination from a DWP decision maker.
An advice agency cannot second guess what a DWP DM will decide.

How the OP gets this (and how long it takes to get a determination) could be problematic.
One route might be to route the question through his MP, as this might get the question asked at a higher level in the DWP than through his work coach / phoning the UC help line.
Would be interested to hear what other forumites think might be the best way of getting an appropriate response from the DWP.
The OP could be best to start the process sooner than later, as the DWP decision making process appears very delayed atm.

xylophone

https://www.cii.co.uk/news-index/articles/impact-of-insurance-payments-on-universal-credit/68004

Although dealing primarily with insurance, the above may be of interest.

calcotti

xylophone wrote: »

https://www.cii.co.uk/news-index/articles/impact-of-insurance-payments-on-universal-credit/68004

Although dealing primarily with insurance, the above may be of interest.

Very useful. Thanks for posting this. Will be helpful if DWP get around to including the example in ADM that article says they intend to include.

Alice_Holt

calcotti wrote: »

Very useful. Thanks for posting this. Will be helpful if DWP get around to including the example in ADM that article says they intend to include.

Indeed.
"The DWP have also agreed that the next version of the Advice for Decision Makers (ADM) guide will include an example to show that paying off mortgage debt will not be treated as deprivation of capital for UC benefit claimants."
That would be very helpful.

[Deleted User]

I would agree that paying off debt under UC is different to under legacy benefits, but written advice from a DM would be best.

antrobus

calcotti wrote: »

This is a good point to raise. There is guidance here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/778104/admh1.pdf
See paragraphs H1169 to H1178.
I confess however that I’m not sure what they mean in practice!

H1174 The people named in a will or the relatives of a person who has died intestate have no interest in specific property in the estate until the executors, administrators or executors dative
1. are in a position to distribute the estate or
2. would be in a position to complete the administration of the estate if they had acted properly.

Which in practice means that the DWP do not consider people are entitled to the money at the date of death and there is no chance that there will be a benefits overpayment which would have to be later repaid,

DWP consider that an inheritance is received when it is received, unless they suspect collusion in delaying matters,

calcotti

antrobus wrote: »

H1174 The people named in a will or the relatives of a person who has died intestate have no interest in specific property in the estate until the executors, administrators or executors dative
1. are in a position to distribute the estate or
2. would be in a position to complete the administration of the estate if they had acted properly.

Which in practice means that the DWP do not consider people are entitled to the money at the date of death and there is no chance that there will be a benefits overpayment which would have to be later repaid,

DWP consider that an inheritance is received when it is received, unless they suspect collusion in delaying matters,

That seemed clear but I was then unclear about the implications of the note that follows this clause

Note: This does not apply to property specifically bequeathed in a will. Such property belongs to the person who inherits the property from the date of death of the person whose estate is being administered and is actual capital. This is subject only to the right of the executors or executors dative to resort to the asset if the remainder of the estate is insufficient to meet the outstanding debts of the deceased

.

Owain_Moneysaver

calcotti wrote: »

That seemed clear but I was then unclear about the implications of the note that follows this clause

Note: This does not apply to property specifically bequeathed in a will. Such property belongs to the person who inherits the property from the date of death of the person whose estate is being administered and is actual capital. This is subject only to the right of the executors or executors dative to resort to the asset if the remainder of the estate is insufficient to meet the outstanding debts of the deceased

.

Yes, if the deceased left "my house to my son" then son is treated has having the capital from the date of death.

If the deceased left "all I own to my son" then it's not specifically bequeathed.

The actual wording of the Will appears important, and the OP themselves may not be completely clear if a property is being sold from the estate to pay the OP a pecuniary bequest (money) or if the property is being sold by the estate to pay the OP's specific bequest (property) as money rather than handing over a house itself.