Disability benefits and inheritance

baltiqueen

Can anyone advise or suggest something please? 

A family member has asked me to look after his inheritance which is coming shortly, so that does not affect his benefits. 

The solicitor will only pay this to my relative, so as far as I understand he will want to transfer this to me immediately after he receives it. 

Firstly, is this legal?  Secondly, will the DWP know as soon as he's received it? 

Not sure which benefits are means tested as just googled and PIP is NON means tested.  The reality is that he is unable to work and receiving this sum would disadvantage him by losing some benefits.  

The sum concerned is quite small and not able to live on this for any length of time.  Have heard that this could be classed as deprivation of assets.

swingaloo

Yes it is illegal. Stay well clear of that.

HillStreetBlues

baltiqueen said:

Can anyone advise or suggest something please? 

A family member has asked me to look after his inheritance which is coming shortly, so that does not affect his benefits. 

The solicitor will only pay this to my relative, so as far as I understand he will want to transfer this to me immediately after he receives it. 

Firstly, is this legal?  Secondly, will the DWP know as soon as he's received it? 

Not sure which benefits are means tested as just googled and PIP is NON means tested.  The reality is that he is unable to work and receiving this sum would disadvantage him by losing some benefits.  

The sum concerned is quite small and not able to live on this for any length of time.  Have heard that this could be classed as deprivation of assets.

It that person is on means-tested benefits and hides money meaning they get more than they should it's fraud, and you would be part of that fraud.

TELLIT01

How much is the inheritance?  The OP refers to 'quite small' which is different things to different people.  If the relative is in receipt of UC or other income related benefits, an inheritance of £6k or above will reduce UC payment and if the figure is £16k or above UC will cease.  If they give the money away it will be classed as deprivation of capital and the amount will still be taken into account.

Were the OP to hold the money for the relative in the knowledge that the person was doing so to commit fraud, they would be an accessory.  Not a good idea.

FlorayG

Aside from the legality, what even is the point? If you have it to 'look after' then he can't spend it and he might as well not have it in the first place. Has he thought about this?

baltiqueen

Thanks for replies.  No it doesn't seem like a good idea at all.  What if he just refused the inheritance, would that be classed as deprivation of capital?

He's had a long herd fight to get the DWP to accept that he should be on benefits.  They have been a nightmare to deal with and will find any excuse not to pay, so he just does not wish to risk this.

HillStreetBlues

baltiqueen said:

Thanks for replies.  No it doesn't seem like a good idea at all.  What if he just refused the inheritance, would that be classed as deprivation of capital?

He's had a long herd fight to get the DWP to accept that he should be on benefits.  They have been a nightmare to deal with and will find any excuse not to pay, so he just does not wish to risk this.

Yes it would be.
As asked upthread how much would the inerrancy be?

peteuk

Depending on the means tested benefit received then anything above £16K will end their entitlement.  If they give it away they will be treated as if they have it and so any means tested benefits will stop until the point that they would be reasonably be below the £16K.

Any attempt to hide capital for the means of continuing to claim beams tested benefits will be classed as fraud. 

vacheron

baltiqueen said:

Thanks for replies.  No it doesn't seem like a good idea at all.  What if he just refused the inheritance, would that be classed as deprivation of capital?

Instead of refusing the inheritance and the risk of an accusation of deliberate depravation, why not accept the money graciously and spend it on their living costs until they fall back below the capital thresholds (the way the system is intended to work).

They would end up in the exact same situation they would have been had they given it away, but having done some good by saving the taxpayer some money?

Rubyroobs

vacheron said:

baltiqueen said:

Thanks for replies.  No it doesn't seem like a good idea at all.  What if he just refused the inheritance, would that be classed as deprivation of capital?

Instead of refusing the inheritance and the risk of an accusation of deliberate depravation, why not accept the money graciously and spend it on their living costs until they fall back below the capital thresholds (the way the system is intended to work).

They would end up in the exact same situation they would have been had they given it away, but having done some good by saving the taxpayer some money?

If receiving this put a stop to the person's means tested benefits for example Universal credit with the LCWRA element and he then had to reclaim when the capital fell below 16k, would the person in question then have to re-start the whole work capability assessment again? I guess this is the problem when op says it has taken him a long time to convince DWP that he is not fir for work. Is there any way of retaining this LCWRA?

Spoonie_Turtle

Rubyroobs said:

vacheron said:

baltiqueen said:

Thanks for replies.  No it doesn't seem like a good idea at all.  What if he just refused the inheritance, would that be classed as deprivation of capital?

Instead of refusing the inheritance and the risk of an accusation of deliberate depravation, why not accept the money graciously and spend it on their living costs until they fall back below the capital thresholds (the way the system is intended to work).

They would end up in the exact same situation they would have been had they given it away, but having done some good by saving the taxpayer some money?

If receiving this put a stop to the person's means tested benefits for example Universal credit with the LCWRA element and he then had to reclaim when the capital fell below 16k, would the person in question then have to re-start the whole work capability assessment again? I guess this is the problem when op says it has taken him a long time to convince DWP that he is not fir for work. Is there any way of retaining this LCWRA?

If claiming UC, yes, open a credits-only claim for ESA.
If claiming legacy ESA currently, I'm not sure how they go about opening a credits-only claim for new-style ESA.

This is all assuming his work-related benefit is fully income-based.  It could be partly contributions-based depending on when and what he claimed and via what rules, so the point could all be moot.