Friend will receive £150k inheritance soon but is on UC &HB

Keep_pedalling

p00hsticks said:

Keep_pedalling said:

theDon876 said:

I should have also said that he's on the advanced UC, he isn't required to work, he gets around £800 for this. He's also on enhanced PIP. I know PIP isn't affected but I'm showing you his situation. Does this change anything regarding deprivation of capital?

The deceased could have used their will to create a disabled person’s trust for your friend instead of leaving them their inheritance absolutely but I don't know if that can be achieved though a deed of variation. this Mencap leaflet has some info on these sorts of trust.

https://www.mencap.org.uk/sites/default/files/2016-06/Mencap%2527s%20Guide%20to%20Leaving%20Money%20in%20Trust.pdf

Even if it could have been set up as a trust, now that the death has occurred and the absolute inheritance has taken effect, a Deed of Variation would need to be agreed by the beneficiary and so I don't think would avoid it being seen as a deprivation of assets.

I thought that was probably the case, but there does seem to be the ability to do this for a disabled persons trust.

https://www.boyesturnerclaims.com/our-cases/asking-court-protection-transfer-inheritance-trust

If it is possible, it would mean the beneficiary would be handing over control of their inheritance to trustees and in their shoes I would rather not do that and would be inclined to buy myself my own place if £150k buys something suitable where they live.

theDon876

p00hsticks said:

Keep_pedalling said:

theDon876 said:

I should have also said that he's on the advanced UC, he isn't required to work, he gets around £800 for this. He's also on enhanced PIP. I know PIP isn't affected but I'm showing you his situation. Does this change anything regarding deprivation of capital?

The deceased could have used their will to create a disabled person’s trust for your friend instead of leaving them their inheritance absolutely but I don't know if that can be achieved though a deed of variation. this Mencap leaflet has some info on these sorts of trust.

https://www.mencap.org.uk/sites/default/files/2016-06/Mencap%2527s%20Guide%20to%20Leaving%20Money%20in%20Trust.pdf

Even if it could have been set up as a trust, now that the death has occurred and the absolute inheritance has taken effect, a Deed of Variation would need to be agreed by the beneficiary and so I don't think would avoid it being seen as a deprivation of assets.

Regarding buying their own flat it seems some are allowed to do this others aren't, depends on decision maker. He's been stay in a flat for around 7 years so they can say well why are you leaving a perfectly good flat to buy another etc?

Is this correct, it will ultimately depend on the decision maker?

Exodi

Keep_pedalling said:

theDon876 said:

I should have also said that he's on the advanced UC, he isn't required to work, he gets around £800 for this. He's also on enhanced PIP. I know PIP isn't affected but I'm showing you his situation. Does this change anything regarding deprivation of capital?

The deceased could have used their will to create a disabled person’s trust for your friend instead of leaving them their inheritance absolutely but I don't know if that can be achieved though a deed of variation. this Mencap leaflet has some info on these sorts of trust.

https://www.mencap.org.uk/sites/default/files/2016-06/Mencap%2527s%20Guide%20to%20Leaving%20Money%20in%20Trust.pdf

From being a party to my stepdad and his will-writer (my stepsister claims Universal Credit as a single mum and he was keen to see that she wasn't forced to slowly use up her inheritance on living costs in the future), the will-writer mentioned a vulnerable persons trust (which I believe is the same thing as used for disabled persons you mention), or even a discretionary trust would have been fine. (FWIW I disagree with the premise).

But as you say, all of this is in retrospect, I'm sure it would be considered DoC to have someone willfully convert their own absolute funds into some form of trust and then claim they no longer have access to them... but then high net worth individuals and companies have been doing a similar thing with offshore companies for decades so who knows!

TELLIT01

In theory they could purchase a property and stay on UC.  The problem is that they would have to receive the inheritance and complete the purchase of the property within one UC payment period, ie. 4 weeks.  That is close to impossible.  If they have the inheritance at the end of the period their UC would stop.  I know nothing about trusts so can't help on that.

Keep_pedalling

theDon876 said:

p00hsticks said:

Keep_pedalling said:

theDon876 said:

I should have also said that he's on the advanced UC, he isn't required to work, he gets around £800 for this. He's also on enhanced PIP. I know PIP isn't affected but I'm showing you his situation. Does this change anything regarding deprivation of capital?

The deceased could have used their will to create a disabled person’s trust for your friend instead of leaving them their inheritance absolutely but I don't know if that can be achieved though a deed of variation. this Mencap leaflet has some info on these sorts of trust.

https://www.mencap.org.uk/sites/default/files/2016-06/Mencap%2527s%20Guide%20to%20Leaving%20Money%20in%20Trust.pdf

Even if it could have been set up as a trust, now that the death has occurred and the absolute inheritance has taken effect, a Deed of Variation would need to be agreed by the beneficiary and so I don't think would avoid it being seen as a deprivation of assets.

Regarding buying their own flat it seems some are allowed to do this others aren't, depends on decision maker. He's been stay in a flat for around 7 years so they can say well why are you leaving a perfectly good flat to buy another etc?

Is this correct, it will ultimately depend on the decision maker?

Well they would be leaving a flat that required benefits to pay the rent to a flat that would require no benefit subsidy, so a win for the benefits system.

poppy12345

theDon876 said:

I should have also said that he's on the advanced UC, he isn't required to work, he gets around £800 for this.

No, that doesn’t change anything. UC is still means tested and that includes all elements. 

Muttleythefrog

FlimFlam01 said:

(Text removed by Mtf)

Many benefits are not means tested so millionaires can get them - David Cameron as example did for his son when PM. State pension.. another benefit which many wealthy pensioners get... will you be handing yours back if you don't need it.

Your point is irrelevant... this isn't about moral judgements or 'need'.. it's about benefit law and inheritance.

Regardless of the course of action taken and any Decisions made on DoC for U/C in this case the subject of the thread will continue to receive PIP as a benefit (at least while they continue to meet the disablement requirements)... inheritance will not affect it.

Post reported... people should feel safe to ask benefit related questions without getting abuse and being slurred. The subject of the thread is a potentially vulnerable person to add... they're disabled and not required to work.

HillStreetBlues

Think some members need to remember MSE stands for Money Saving Expert. not Morally Superior Expert.