Inheritance Due,,The worst thing that can happen, as LCWRA will stop

TELLIT01

Having savings doesn't mean having to move out of sheltered housing.  That is generally provided on the basis of health needs.  My brother lived in supported housing but had to pay his own rent etc because of the level of savings he had.

[Deleted User]

I have roughly calculated that £100000 in a savings account at a modest interest rate of 3% per annum and withdrawing £15000 a year to cover living costs would last at least 7 years. You would have about £4000 left in savings. By this time you will be able to claim your state pension. Surely this is a better way forward without having to worry about meeting all the terms and conditions benefit claimants have to undertake?
Even with rent, £15000 a year could be doable. Just my suggestion. Not saying it is fool proof.

QrizB

If the OP is expecting a full New State Pension at age 67, and won't be eligible for Pension Credit, it might also be worth considering using the inheritance to buy an annuity. That might return more than £4000 per year, index linked, for the rest of their life.

But that's going to need careful thought.

born_again

QrizB said:

If the OP is expecting a full New State Pension at age 67, and won't be eligible for Pension Credit, it might also be worth considering using the inheritance to buy an annuity. That might return more than £4000 per year, index linked, for the rest of their life.

But that's going to need careful thought.

Would that still be viewed as DofC?

As in reality it is gaming the benefits system.

kaMelo

born_again said:

QrizB said:

If the OP is expecting a full New State Pension at age 67, and won't be eligible for Pension Credit, it might also be worth considering using the inheritance to buy an annuity. That might return more than £4000 per year, index linked, for the rest of their life.

But that's going to need careful thought.

Would that still be viewed as DofC?

As in reality it is gaming the benefits system.

An annuity provides a guaranteed income for the rest of someone's life (or joint life if chosen)

I don't see how anyone could view this as deprivation, all they are doing is giving themselves some financial security in old age.

Whether it would be beneficial to do so would need to be calculated with knowledge of their full financial situation.

FrugalintheNortheast

Regarding deprivation of capital 
the OP has to declare the inheritance once its in their bank account 
Until then it is the property of the deceased person’s estate.
Probate will be going forward with that amount of money, 
Wills are usually a matter of public record.
The first thing when settling a person’s estate is locate any possible debts and any other possible claims on the estate before making any payouts.
Usually the solicitor will put a notice in some newspapers so there can no creditors come out of the woodwork at the last minute and say they are owed money.
Sometimes the debts can be massive and wipe out the estate.
Hopefully the OP has been getting some proper legal advice and finding out exactly what they are doing.
At the moment it seems a bit vague.
They need to get all the facts together and then start making a paper trail.

kaMelo

FrugalintheNortheast said:

Regarding deprivation of capital 
the OP has to declare the inheritance once its in their bank account 
Until then it is the property of the deceased person’s estate.
Probate will be going forward with that amount of money, 
Wills are usually a matter of public record.
The first thing when settling a person’s estate is locate any possible debts and any other possible claims on the estate before making any payouts.
Usually the solicitor will put a notice in some newspapers so there can no creditors come out of the woodwork at the last minute and say they are owed money.
Sometimes the debts can be massive and wipe out the estate.
Hopefully the OP has been getting some proper legal advice and finding out exactly what they are doing.
At the moment it seems a bit vague.
They need to get all the facts together and then start making a paper trail.

That is all for the executor of the will to carry out, the OP only mentions being a beneficiary so has nothing to do with any of that.

born_again

kaMelo said:

born_again said:

QrizB said:

If the OP is expecting a full New State Pension at age 67, and won't be eligible for Pension Credit, it might also be worth considering using the inheritance to buy an annuity. That might return more than £4000 per year, index linked, for the rest of their life.

But that's going to need careful thought.

Would that still be viewed as DofC?

As in reality it is gaming the benefits system.

An annuity provides a guaranteed income for the rest of someone's life (or joint life if chosen)

I don't see how anyone could view this as deprivation, all they are doing is giving themselves some financial security in old age.

Whether it would be beneficial to do so would need to be calculated with knowledge of their full financial situation.

As the amount received would take them over savings limit, by placing that amount in a annuity to give them a smaller income. So they could still claim UC.

Would to me seem exactly what DofC is.

Could be wrong. But I would think OP would need to take proper advice before undertaking such a move.

Murphybear

TELLIT01 said:

Having savings doesn't mean having to move out of sheltered housing.  That is generally provided on the basis of health needs.  My brother lived in supported housing but had to pay his own rent etc because of the level of savings he had.

I live in sheltered housing.  Anyone can live there as long as they are over 55.  When you apply they don’t ask any questions about your finances or health.   It’s owned by a Housing Association and is a registered charity.  

kkkklinky

It never surprises me that people try to keep benefits and a large inheritance. Just reclaim when your money runs below 16,000, don't spend extravagantly. Yes you will need a new WCA but they are reviewed regularly regardless and losing an active award is possible at review anyway so having your LCWRA status stopped shouldn't matter. reclaiming in the future should not be an issue