UC and inheritance?

blackstar

andrewmp said:

If you're left money then you pay it off your mortgage before your next assessment period then it'll be as if it never existed as far as UC goes.

Repayment of debt is never considered deprivation of capital for UC purposes.

This is what we plan to do ie pay off our mortgage and the rest of it to go into a pension as we have no pension saved at all. Really hope that putting the rest into a pension we have adequate means of living in our old age wouldn't be considered deprivation of capital? Would be shocked.

toomuchinfo

blackstar said:

toomuchinfo said:

My son has autism and learning disabilities. We have set up a discretionary trust for him because he will never be able to manage his own affairs. A solicitor drew this up.

Yes Mencap do a Discretionary trust. What is the name.of this trust? As Mencap appoint their own trustee you have to go though to withdraw funds for your son when he needs something after he's 16 or 18 years of age. 

Does this affect your UC ?

We have no access to the trust, it is administered by the trustees. It does not affect my son’s ESA (he’s an adult)

kaMelo

blackstar said:

andrewmp said:

If you're left money then you pay it off your mortgage before your next assessment period then it'll be as if it never existed as far as UC goes.

Repayment of debt is never considered deprivation of capital for UC purposes.

This is what we plan to do ie pay off our mortgage and the rest of it to go into a pension as we have no pension saved at all. Really hope that putting the rest into a pension we have adequate means of living in our old age wouldn't be considered deprivation of capital? Would be shocked.

The pension is not so straightforward, there are limits such as the annual allowance and how much you earn is important too. Without specific figures it's difficult to offer meaningful help.

On a wider point, and I'm asking everyone here as I don't know the answer, is it possible for pension contributions made from capital and in excess of earnings, so not relievable, to ever be considered deprivation of capital?

HillStreetBlues

kaMelo said:

On a wider point, and I'm asking everyone here as I don't know the answer, is it possible for pension contributions made from capital and in excess of earnings, so not relievable, to ever be considered deprivation of capital?

Yes it is.
It can be DoC when moving capital from non-disregarded  to disregarded. Ruling  R(SB)40/85)
It comes down to intent, is a reason (it doesn't have to be the main reason) that person moved the capital to be able to increase a means-tested benefit.
The decision above gives an example of buying a carpet, a carpet is a personal possession so disregarded, but if carpet is bought and a reason for purchase is to increase a benefit then it's DoC. 

kaMelo

Thanks for that.

Depending upon the figures (their annual earnings and the amount of inheritance) this may be relevant to the OP and their wishes to fill a pension with any inheritance.