Inheritance & Benefits

Bozzi

When my grandmother died, my Aunt sold my Grandmother's house which was valued at £100,000 and the sales proceeds were sent into the 'Executors Account' (in which my Aunt has control over, which was then divided between five of us in the family including my Aunt, Mother, two Brothers and me, after my Grandmother's debts which had been deducted. My share was valued at £15,359.08.

Over time, I received lump sums of the inheritance, from the Executors Account (from my Aunt) during the period of 6 months, I currently have a total of £2,199.08 remaining which is still in the Executors Account (as of 9th April 2022).

The reason why the payments were sent to me over time in lump sums is because I have issues with budgeting and I'm currently receiving support for this in the form of budgeting plans created by my Recovery Worker (who works for NIHCSS (Norfolk Integrated Housing and Community Support Service)). Therefore, it was in my best interest to receive my inheritance over time, as and when I required it.

A value of £3,978.73 out of £15,359.08 was spent on goods that improve my living conditions including furniture and new household items of which I required and to replace old items (a mattress, storage drawers, chests of drawers, coffee table, tumble dryer, chest freezer, sofa, chair, hoover and a printer). I have receipts for all these items. Also, I have bank statements, detailing the transactions, during the year of 2022. The remaining total value of my inheritance after the value of these items were deducted is: £11,380.35.

A value of £2,997.78 out of £11,380.35 was spent on personal debts including debt collection agency - TM Legal Services and Norfolk County Council. I have historic letters from TM Legal Services and all of the invoices for this year (2022) from Norfolk County Council (I no longer have the invoices for last year (2021)). Also, I have bank statements detailing the transactions to TM Legal Services and Norfolk County Council during the years of 2021 and 2022. The remaining total value of my inheritance after these debts are deducted is: £8,382.57.

The remainder (above the lower limit threshold of capital of £6,000 in terms of calculation towards means-tested benefit entitlements) of £2,382.57 out of £8,382.57 was spent on further items I required including daily living expenses (including clothing and food). Unfortunately, I do not have the receipts for this amount, however, I do have bank statement detailing what my transactions were.

As far as I believe, the first £6,000 is ignored when calculating means-tested benefit entitlements and majority of the remainder of the inheritance was spent on daily living expenses, leaving a remainder of £2,199.08 of my inheritance which is currently still in the Executors Account. This amount is well below the threshold of £6,000. The means-tested benefits I receive is Employment and Support Allowance (Income-related ESA) and Housing Benefit).

My Aunt received advice from Scope who stated that nothing has to be declared until the bulk of the inheritance has been received into my bank account from the Executors Account (in which the bulk of the inheritance was received into my bank account during the months of March 2022 and April 2022). So I am in the process of declaring this now to the Local Authority and DWP.

I am worried that they will not accept the fact that I do not have receipts for some of the amounts that have been calculated, especially that of which is over the £6,000 threshold. Do you think I will be ok in the eyes of the Local Authority and DWP? I wrote a letter state that I received it in small lump sums over a 6 month period because I have issues budgeting in which I am receiving support for this. Will they accept this in your view?

Thank you.

poppy12345

I don't know why you've posted another thread with the regarding the same thing. Your other thread is here. https://forums.moneysavingexpert.com/discussion/6349065/inheritance-and-deprivation-of-capital-rules#latest It's very confusing when starting the same thread with the same questions.

Bozzi

poppy12345 said:

I don't know why you've posted another thread with the regarding the same thing. Your other thread is here. https://forums.moneysavingexpert.com/discussion/6349065/inheritance-and-deprivation-of-capital-rules#latest It's very confusing when starting the same thread with the same questions.

I thought I would make it more detailed explaining the situation more better. I did reply to the answers on the other thread, it's just I didn't give all the information I needed on the thread

poppy12345

Which could have been done on the other thread. Yes, i seen you made the same comment 3 times on the other thread. It just causes confusion with multiple threads.