Children's inheritance and UC

eileenfromplaistow

My daughter's ex husband has terminal cancer and we are working out the best way to leave the boys provided for. No-one else needs to inherit.
Assuming his estate isn't riddled with debt ( a very real possibility), would any money left directly to his sons and put into savings accounts be counted as their mum's for UC purposes?

She works full time and gets working tax credits that I know of. Also he has talked(does a lot of that) of paying off her mortgage too. Would that affect benefits?

She makes every penny count, and is worried sick that after his death she will be left short each month.
He has yet to make a will or say what his pension situation is, and any information I provide is ignored. He doesn't talk to his own family, but does to my husband.

poppy12345

She won't be claiming UC and Tax credits, it's one or the other but more likely to be UC, which is means tested. 

If there's a Will and it's left to the children this way then it won't affect her UC. If he pays off her mortgage that won't affect her UC either.

If he left her money and she paid off her mortgage with it then this won't affect her UC either because paying off debt is allowed when claiming UC. She must still report the changes and tell them she's received some inheritance. 

Flugelhorn

I presume also if the children are under 18 then the money will be held in trust and probably inaccessible until they are of age 

Keep_pedalling

How old are the children?

eileenfromplaistow

10 and 12 years
What would be good is if there is a dependents element to his pension for the boys, as she needs some money for them each month. 
We are thinking now that he may have opted out years ago and isn't telling us. 
I've told my husband no way are any of us paying for his funeral if he's broke. 

peteuk

Depending on his debt and the T+Cs depends on what will need to be paid.  
Does he own a property, if so life insurance usually pays the mortgage (if he has it) is there anyone living with him?

As an example - my mums credit cards were cleared by the company, upon her death, as her estate passed to my father.  She technically had nothing as the only assess was the house he was still living in. 

As for the funeral if he has funds it will come out of those.  If he’s broke then your daughter has nothing to worry about as the kids and her wont be getting a penny.

Keep_pedalling

eileenfromplaistow said:

10 and 12 years
What would be good is if there is a dependents element to his pension for the boys, as she needs some money for them each month. 
We are thinking now that he may have opted out years ago and isn't telling us. 
I've told my husband no way are any of us paying for his funeral if he's broke. 

Anything left to the children or inherited by them through the law as of intestacy will be have to be held in trust for them until they are 18 (16 if in Scotland) at which point they can do what they like with it. This will not impact their mother’s benefits.

If his estate is actually solvent then leaving sufficient to his ex to pay off part of her mortgage would probably be the best option as the children will still benefit and the family will be better of by having more disposable income. The ex really needs to get his affairs in order and if he has assets to leave see a solicitor regarding getting an up to date will in place.

Brie

Is he still working (even if off long term sick)?  He may still have the option to sign up again to the work pension to ensure there are some benefits for his children assuming they don't bar him due to his illness.  Potentially this might mean a lump sum to his named beneficiary (to ex to pay off mortgage?) as well as "orphan" pensions that would pay towards the children potentially until they are 25 if still in education at that point.  It's a lot of "IFs" but well worth getting him to investigate.  But all dependent on him being in work and the type of pension scheme offered and it's T&Cs.  

Flugelhorn

eileenfromplaistow said:

10 and 12 years
What would be good is if there is a dependents element to his pension for the boys, as she needs some money for them each month. 
We are thinking now that he may have opted out years ago and isn't telling us. 
I've told my husband no way are any of us paying for his funeral if he's broke. 

very hard to know what his pension status is 

re the funeral - no-one has to pay for anyone else's funeral. If there is money in the estate ( and I don't mean pensions as they are usually outside the estate) - I  mean actual cash in the bank / property / assets - then that is used to pay for the funeral. If there is no money in the estate  then the local council pay - some info here https://www.gov.uk/government/publications/public-health-funerals-good-practice-guidance/public-health-funerals-good-practice-guidance

eileenfromplaistow

Thanks everyone for taking time to comment.

My husband has spent months trying to get him to talk to a solicitor and get proper advice. I've wanted to run him over since he cheated on my daughter!

We'll keep on trying to get him to be responsible for the sake of his boys.

Flugelhorn

eileenfromplaistow said:

Thanks everyone for taking time to comment.

My husband has spent months trying to get him to talk to a solicitor and get proper advice. I've wanted to run him over since he cheated on my daughter!

We'll keep on trying to get him to be responsible for the sake of his boys.

I think even if he doesn't make a will etc the least you want is some clarity as to where to find paperwork and where his bank accounts are etc etc