Legitimate Ways to Inherit money and not lose benefits?

Enigmaman

I am expecting to lose all my benefits when I inherit some money that would put me comfortably over 16 K in capital. The benefits are PIP,  Working Tax Credit, HB and CTB.
I would expect to lose all benefits and am wondering how I (or more to the point the person making the request) would go about trying to ensure I keep some of my benefits at least). I imagine that buying a property, if I inherit enough capital, might be the answer (at the moment I am renting) or would that the bequeather's setting up a Trust Fund be the answer? Or would that not simply delay the moment when I lose my benefits? Is there some other legitimate workaround?

calcotti

You will not lose PIP because it is not means tested.
Working Tax Credits has no capital limits so an inheritance does not affect them either. You will, in future, have to declare any interest/return on your capital over £300/annum.
HB and CTB will end.
If you then buy a property and you capital falls below £16,000 (or whatever limit your local authority has set as they can vary the rules) you may be able to claim CTB again - obviously HB would not be applicable.

poppy12345

If you don't buy a property with the money, if you need to claim for help with the rent again when your savings drop below £16,000 then you'll need to claim Universal Credit, new claims for housing benefit are no longer possible.  Once you claim UC your tax credits will end.

khorne

The Executor can sometimes take a very long time to distribute the money from a will.  I do not believe there is a time limit, and sometimes the beneficiaries can take action to hurry them along when it drags on for years.   During this time the money can be invested so that it isn't sat doing nothing or might be left where it is, for example if it is already in the form of shares or is on deposit.    It is also not necessary to receive all your money in one go.   For example, there might be some cash available which can be distributed immediately but there may also be a house to sell which might take months or years.   In your case you might think about how much of a rush you are in for all of it and if it would be a problem if the Executer took a long time to send you it all?

Comms69

khorne said:

The Executor can sometimes take a very long time to distribute the money from a will.  I do not believe there is a time limit, and sometimes the beneficiaries can take action to hurry them along when it drags on for years.   During this time the money can be invested so that it isn't sat doing nothing or might be left where it is, for example if it is already in the form of shares or is on deposit.    It is also not necessary to receive all your money in one go.   For example, there might be some cash available which can be distributed immediately but there may also be a house to sell which might take months or years.   In your case you might think about how much of a rush you are in for all of it and if it would be a problem if the Executer took a long time to send you it all?

Is the forum really advising ways of abusing the benefits system?

strawb_shortcake

Its established you'd only lose two benefits. But if you are able to buy a house losing the HB is a a moot point anyway. 
Depending how much capital you had left you may still be able to claim CTB. 
It does seem a lot of effort to try and cheat the system for little or no council tax

TELLIT01

Comms69 said:

khorne said:

The Executor can sometimes take a very long time to distribute the money from a will.  I do not believe there is a time limit, and sometimes the beneficiaries can take action to hurry them along when it drags on for years.   During this time the money can be invested so that it isn't sat doing nothing or might be left where it is, for example if it is already in the form of shares or is on deposit.    It is also not necessary to receive all your money in one go.   For example, there might be some cash available which can be distributed immediately but there may also be a house to sell which might take months or years.   In your case you might think about how much of a rush you are in for all of it and if it would be a problem if the Executer took a long time to send you it all?

Is the forum really advising ways of abusing the benefits system?

The OP specifically asked for legitimate methods.  If there are routes to do this which are accepted by the Government is it not abusing the system.

Comms69

TELLIT01 said:

Comms69 said:

khorne said:

The Executor can sometimes take a very long time to distribute the money from a will.  I do not believe there is a time limit, and sometimes the beneficiaries can take action to hurry them along when it drags on for years.   During this time the money can be invested so that it isn't sat doing nothing or might be left where it is, for example if it is already in the form of shares or is on deposit.    It is also not necessary to receive all your money in one go.   For example, there might be some cash available which can be distributed immediately but there may also be a house to sell which might take months or years.   In your case you might think about how much of a rush you are in for all of it and if it would be a problem if the Executer took a long time to send you it all?

Is the forum really advising ways of abusing the benefits system?

The OP specifically asked for legitimate methods.  If there are routes to do this which are accepted by the Government is it not abusing the system.

The same can be said for Amazon etc then too? Right...

TELLIT01

Comms69 said:

TELLIT01 said:

Comms69 said:

khorne said:

The Executor can sometimes take a very long time to distribute the money from a will.  I do not believe there is a time limit, and sometimes the beneficiaries can take action to hurry them along when it drags on for years.   During this time the money can be invested so that it isn't sat doing nothing or might be left where it is, for example if it is already in the form of shares or is on deposit.    It is also not necessary to receive all your money in one go.   For example, there might be some cash available which can be distributed immediately but there may also be a house to sell which might take months or years.   In your case you might think about how much of a rush you are in for all of it and if it would be a problem if the Executer took a long time to send you it all?

Is the forum really advising ways of abusing the benefits system?

The OP specifically asked for legitimate methods.  If there are routes to do this which are accepted by the Government is it not abusing the system.

The same can be said for Amazon etc then too? Right...

Unfortunately that is true.  Companies and individuals are following the letter of the law.  If Government have left gaps in the system which allow companies and individuals to minimise their liabilities that is something for Government to address.  I don't like it but it is legal.  It could also be argued that people taking money out of the system when they haven't paid into it are abusing it, but there we are moving into the area of discussion rather than providing assistance to questions.

Enigmaman

Comms69 said:

khorne said:

The Executor can sometimes take a very long time to distribute the money from a will.  I do not believe there is a time limit, and sometimes the beneficiaries can take action to hurry them along when it drags on for years.   During this time the money can be invested so that it isn't sat doing nothing or might be left where it is, for example if it is already in the form of shares or is on deposit.    It is also not necessary to receive all your money in one go.   For example, there might be some cash available which can be distributed immediately but there may also be a house to sell which might take months or years.   In your case you might think about how much of a rush you are in for all of it and if it would be a problem if the Executer took a long time to send you it all?

Is the forum really advising ways of abusing the benefits system?

Where's the abuse? if there is a legal workaround why not ask about it?
There always seems to be someone who feels the need to start moralising when someone asks about benefits. 

Enigmaman

khorne said:

The Executor can sometimes take a very long time to distribute the money from a will.  I do not believe there is a time limit, and sometimes the beneficiaries can take action to hurry them along when it drags on for years.   During this time the money can be invested so that it isn't sat doing nothing or might be left where it is, for example if it is already in the form of shares or is on deposit.    It is also not necessary to receive all your money in one go.   For example, there might be some cash available which can be distributed immediately but there may also be a house to sell which might take months or years.   In your case you might think about how much of a rush you are in for all of it and if it would be a problem if the Executer took a long time to send you it all?

Good point. In fact, it does consist of capital and a house which would need to be sold.    
On the question of an Executor, my mother (whose estate it would be) has appointed my brother and myself as Executors, with the idea of saving money.
I am not at ease about this, as (a) We have no legal training and (b) do not get on very well, and he has shown himself to have a pretty grasping attitude in the past (and his wife even more so). It seems like a recipe fr trouble to me but unfortunately, it is not my decision.   
I may post about ti on a sub-forum more geared to overtly legal matters.