Inheritance and effect on assisted living payments and benefits

snowmen

Hi,
If I am posting this in the wrong area please just tell me...
A friend's parent has just passed away and looking at the will there will be money coming their way once probate is complete.
They are currently in receipt of Universal Credit and also get their assisted living care package paid for at the moment.
When they inherit the money will they have to use this to pay for their assisted living payments and potentially lose their UC as well or is there a way around this?

RAS

It rather depends how much they inherit? 

If their savings are increased to over £16K they will lose their UC until such time as it drops below the limit again. They need to be sensible how they spend it as some things are considered deprivation of assets. A new bed or washing machine, if needed, are OK but a round the world cruise probably not. Someone was allowed a US holiday, but not to pay for a friend.

Your friend needs to take advice from a charity specialising in their situation but this might give you a first clue.

Savings and benefits | Disability charity Scope UK

marcia_

snowmen said:

Hi,
If I am posting this in the wrong area please just tell me...
A friend's parent has just passed away and looking at the will there will be money coming their way once probate is complete.
They are currently in receipt of Universal Credit and also get their assisted living care package paid for at the moment.
When they inherit the money will they have to use this to pay for their assisted living payments and potentially lose their UC as well or is there a way around this?

 Not a clue about assisted living but for UC if over £16k they will be expected to live off the inheritance and UC will stop until below the limits. 

 No way round it really. They can spend money on reasonable things, new furniture etc but giving it away or spending it frivolously will be seen as depravation

post on the benefits board for more information on benefits. Might be someone on there who
understands care funding too.?

snowmen

Thanks for your comments.
I will post across on the benefits board also as suggested.

jonnydeppiwish!

Also, they won’t be able to do a deed of variation, as this will also be considered deprivation of assets.

elsien

If by assisted living you mean a contribution towards a care package or housing with care or supported living set up arranged by the local authority following on from a care act assessment then they will have a financial assessment with regards to their contribution. There should be information on her local authority website, but here is the starting point.

https://www.moneyhelper.org.uk/en/family-and-care/long-term-care/means-tests-for-help-with-care-costs-how-they-work