Inheritance Q and A

MarzipanCrumble

I would ask on the Benefits Board about how this may or may not affect DWP.  

km1500

I think you need to tread carefully here 

I can see what you are trying to do but there's no getting away from the fact that currently have 45k in cash and you need to declare this the DWP otherwise you risk committing a criminal offence

Sarahspangles

Sorry about your loss.

I understand why you’re focussing on the benefits position right now. However do you also have an opportunity here? Either to let the house for income, or to live there yourself with a lodger or as an Air BnB. Is there a way it could lift you out of UC altogether? Probably not one for this board though.

Ayr_Rage

If you are left £45,000 and half a house but do not accept it or give it away the DWP will most likely say you had it anyway.

There shouldn't be leeway, just the law and benefit fraud is serious.

Sarahspangles

[Deleted User] said:

Sarahspangles said:

Sorry about your loss.

I understand why you’re focussing on the benefits position right now. However do you also have an opportunity here? Either to let the house for income, or to live there yourself with a lodger or as an Air BnB. Is there a way it could lift you out of UC altogether? Probably not one for this board though.

Thanks.  There is potential for letting the house for the holiday season, yes.  Its close the the welsh coast and popular beaches. I have read horror stories when letting and/or air bb so im a bit hesitant.  Had we been looking at a much bigger estate then i would have gladly come off benefits and figured out a way forward. As it stands im in a sort of in that grey area where the inheritance isnt life changing in value but it’s enough to cause a financial deficit in the long run.  Along with a house comes poll tax at D band, maintenance, insurance and energy bills.  I think it is worth the effort and is doable for the most part.  My mother did warn me this would be a headache.

Yes, I lost my dad nearly six months ago and it’s stressful having to deal with stuff on top of grief. If you don’t have dependents/descendants  yourself, would your brother be content owning part of the house and you eventually leaving it to him/his family?

[Deleted User]

Ayr_Rage said:

If you are left £45,000 and half a house but do not accept it or give it away the DWP will most likely say you had it anyway.

There shouldn't be leeway, just the law and benefit fraud is serious.

Well i was left half of an estate.  And my half of the estate will be the house which, at 200k+, exceeds the half of the estate my brother gets. So im not actually giving anything away.  If anything, my brother is the one giving away something.   The other poster mentions a Deed of Variance which may be a good way to get the things black & white for any future issues.  The DoV will make it clear who gets what and there isnt any grey area as such. 

Savvy_Sue

[Deleted User] said:

I suppose the big question is do I want to live alone in 3 bed house out in the Welsh sticks.

And that is indeed the question. Obviously I neither know nor need to know what benefits you're on, and why, but if you have any physical limitations then do bear in mind that these are likely to become more of a problem as time goes by. Even if living out in the sticks is OK now, how will it be in 5, 10, 15 years time? 

Remember, the one thing you can absolutely not change about a house is its location!

Savvy_Sue

[Deleted User] said:

As far as im aware you cannot be forced to accept an inheritance if it affects you in a negative way financially and since im 1 of 2 beneficiaries there should be some leeway, but like i said DWP may think otherwise.

I think you are wrong - completely wrong - about this. And why should there be any leeway at the expense of taxpayers?

Having said that, you might be able to inherit a house and keep your benefits, but you need proper advice. Even if you can, you need to be certain that this is the right house for you.

[Deleted User]

Savvy_Sue said:

[Deleted User] said:

As far as im aware you cannot be forced to accept an inheritance if it affects you in a negative way financially and since im 1 of 2 beneficiaries there should be some leeway, but like i said DWP may think otherwise.

I think you are wrong - completely wrong - about this. And why should there be any leeway at the expense of taxpayers?

Having said that, you might be able to inherit a house and keep your benefits, but you need proper advice. Even if you can, you need to be certain that this is the right house for you.

Yes, you are not affected if you inherit a house or part of a house if you choose to keep it as your main residence. They are fairly clear on this. Since the will names 2 people as sole beneficiaries of the 'estate' then its up to myself and my brother to come to a mutual agreement on how that should be allocated.  There is no conflict between us and he is financially quite well off and to be honest has no desire to get involved in the whole process.  This is why i have been doing it and tying up ends on this side of the pond.   I havent really discussed the liquid assets with him too much and he hasnt indicated he really has much interest in any of that or any part of the estate.  I dont blame him because there are 40+ years of my parents odds and ends at the house and its not a cakewalk trying to figure out what to do with all of it.  He indicated he might come over this summer to give me a hand, but i know my brother is not the 'pull up your sleeves' type and will just take a few things of sentimental value and leave me with the loose ends and more a less leave me to it.  I had to deal with our father dying a year ago by myself, so i think he has considered this and has not really inserted himself after our mother died.  There is a good chance he will say take the lot, and get on with your life.  I dont really know yet, so this is why im trying to see where i sit in the event that he decides to be more involved in the whole process. 

Mojisola

km1500 said:

I think you need to tread carefully here 

I can see what you are trying to do but there's no getting away from the fact that currently have 45k in cash and you need to declare this the DWP otherwise you risk committing a criminal offence

That's not so.  Only if the money was distributed would the OP have to declare it.