Disability benefits and Inheritance

Jurgen500

I have a profoundly disabled daughter who is currently in receipt of all applicable benefits and is being cared for in an independent living environment and we manage her assets to below the £16k limit to avoid losing any benefits.

We (her mum and dad) are currently sorting out a will whereby on our expiry she will inherit a sum. The question is simple, should we exclude her from inheritance in order that her benefits and arrangements are not impacted by any additional cash? Or is there an alternative that folk have come across?

thanks

elsien

She may have to pay some of her own way for a while, but it shouldn’t impact on her living arrangements at all. 

And may give her a better quality of life if she uses the money to do things she wouldn’t normally get the chance to do otherwise till the money came down to the 16K level.
Have you looked into setting up a trust - I think Mencap has information about that.

Although from a personal point of view, I don’t why it is unreasonable for anyone on benefits to use the money to live on if they do come into a large sum. 

marcia_

Jurgen500 said:

I have a profoundly disabled daughter who is currently in receipt of all applicable benefits and is being cared for in an independent living environment and we manage her assets to below the £16k limit to avoid losing any benefits.

We (her mum and dad) are currently sorting out a will whereby on our expiry she will inherit a sum. The question is simple, should we exclude her from inheritance in order that her benefits and arrangements are not impacted by any additional cash? Or is there an alternative that folk have come across?

thanks

 What benefits does she receive? 

Some will be affected others not. 

turnitround

If your daughter was not disabled would you be leaving your money to her on your death?
If she was not disabled but on other benefits would you be leaving your money to her after your death?

Your money will benefit her in one way or another if it is left to her so why would you consider excluding her from your will?

HappyHarry

Jurgen500 said:

I have a profoundly disabled daughter who is currently in receipt of all applicable benefits and is being cared for in an independent living environment and we manage her assets to below the £16k limit to avoid losing any benefits.

We (her mum and dad) are currently sorting out a will whereby on our expiry she will inherit a sum. The question is simple, should we exclude her from inheritance in order that her benefits and arrangements are not impacted by any additional cash? Or is there an alternative that folk have come across?

thanks

Ask your solicitor about creating a disabled persons trust in your Wills.

diystarter7

OP
Do you have other children or grandchildren?
If the amount you are to leave her is substantial and IMO that is anything over 50k, leave it to her as she could benefit from it if she has the capacity to do that. May want to go on hols, buy new/faster laptops/larger tv, etc

If there are no siblings/grandchildren, give it to your daughter as benefits have eligibility criteria for a reason and once she is below the threshold the benefits would kick in again. However, though thankfully I've never been on benefits/etc, I can imagine the set of the ILF again may encounter a few problems.

Have you considered a charity in part/etc?

Whatever your decision, I'm sure it will be one that you could rest your mind with.

Btw - I'm only trying to help and hope you are not offended by anything that I have posted as it is sincerely not my intention.

diystarter7

PS. Sorry, forgot this. You may have already doe this but consider consulting a social worker that spealizes in ILF and family in your situation and hear what they have to say. IMO, the more info you have from those in the know will make it easier for you two to decide.

Jurgen500

Thanks to those with the constructive responses. Much appreciated. I will discuss the trust option at my first meet with the solicitor.

Jurgen500

diystarter7 said:

OP
Do you have other children or grandchildren?
If the amount you are to leave her is substantial and IMO that is anything over 50k, leave it to her as she could benefit from it if she has the capacity to do that. May want to go on hols, buy new/faster laptops/larger tv, etc

If there are no siblings/grandchildren, give it to your daughter as benefits have eligibility criteria for a reason and once she is below the threshold the benefits would kick in again. However, though thankfully I've never been on benefits/etc, I can imagine the set of the ILF again may encounter a few problems.

Have you considered a charity in part/etc?

Whatever your decision, I'm sure it will be one that you could rest your mind with.

Btw - I'm only trying to help and hope you are not offended by anything that I have posted as it is sincerely not my intention.

Hi, no offense taken at all and thanks for the input, its really appreciated! I do have 2 other children (one if which is Downs syndrome but lives at home with us) so we will have to structure the most optimal 3-way split to maintain benefits. Thought i would start with daughter #1 first as this would influence the whole split. Will check out the disabled trust option as an equal split would be over 50k

bloody nightmare tbh……..

Albermarle

HappyHarry said:

Jurgen500 said:

I have a profoundly disabled daughter who is currently in receipt of all applicable benefits and is being cared for in an independent living environment and we manage her assets to below the £16k limit to avoid losing any benefits.

We (her mum and dad) are currently sorting out a will whereby on our expiry she will inherit a sum. The question is simple, should we exclude her from inheritance in order that her benefits and arrangements are not impacted by any additional cash? Or is there an alternative that folk have come across?

thanks

Ask your solicitor about creating a disabled persons trust in your Wills.

This is the best route,and as far as I am aware, you can set it up whilst you are still alive, if you wish.
This thread
 Inheritance will stop all my disability benefits. No trustee? - Page 2 — MoneySavingExpert Forum
started out on a different subject, but half way down page 2, you will see someone asked pretty much the same question as you.

Newly_retired

My mother created a disabled trust for my sister who was in an assisted living home and on benefits. Her adult daughter manages it on her behalf and it provides a certain smallish sum each year ( about £1200 I think ) which she uses for outings, clothes, spectacles, new TV, gifts etc, without affecting her benefits.  Any residue ( and it is invested so as to hopefully at least maintain its value ) will be iherited by her adult chidlren when she dies. It needed to be set up via a solicitor. I think this is proobably what you are looking for.