Pension Credit Housing Benefit and Inheritance

Steffi7

Hi there,
I couldn't find an answer so I am posting this question. I receive State Pension, Pension Credit, Housing Benefit and Council tax support. I will soon be getting a £46,000 inheritance, so I will declare it. But I have a young family overseas permanently and I want to send a gift for support of the children of £25,000. This will bring my savings down from the £46,000 to £21,000 immediately. So it will only take a matter of months before my savings are reduced to the £16,000 savings threshold.

The question is, will Housing Benefit have a problem with this? Does anyone know where I can get advice?

Many thanks

(Removed by Forum Team)

Marcon

Steffi7 said:

Hi there,
I couldn't find an answer so I am posting this question. I receive State Pension, Pension Credit, Housing Benefit and Council tax support. I will soon be getting a £46,000 inheritance, so I will declare it. But I have a young family overseas permanently and I want to send a gift for support of the children of £25,000. This will bring my savings down from the £46,000 to £21,000 immediately. So it will only take a matter of months before my savings are reduced to the £16,000 savings threshold.

The question is, will Housing Benefit have a problem with this? Does anyone know where I can get advice?

Many thanks

(Removed by Forum Team)

Normally if you are receiving a means-tested benefit and give away a chunk of money, it is seen as 'deliberate deprivation of assets' and you can be treated as if you still have the money. Age UK's helpline should be able to clarify how what you intend to do will impact on your HB: 0800 678 1602

QrizB

You might be able to vary the will so your young family receive the £25k direct from the estate?

This occasionally gets mentioned on the "death, funerals and probate" board, so you might want to ask over there:

https://forums.moneysavingexpert.com/categories/deaths-funerals-probate

See for example this thread:
https://forums.moneysavingexpert.com/discussion/6578752/deed-of-variation

p00hsticks

QrizB said:

You might be able to vary the will so your young family receive the £25k direct from the estate?

This occasionally gets mentioned on the "death, funerals and probate" board, so you might want to ask over there:

It's known as a 'Deed of Variation', but it doesn't avoid the issue of the deprivation of assets as the person is still voluntarily giving the money away. The OP needs to tell the relevant authorities (local council and DWP) about the full value of the inheritance.  State Pension will be unaffected but all the others mentioned are means tested and will most liekly be reduced or stopped. 

Marcon

QrizB said:

You might be able to vary the will so your young family receive the £25k direct from the estate?

This occasionally gets mentioned on the "death, funerals and probate" board, so you might want to ask over there:

https://forums.moneysavingexpert.com/categories/deaths-funerals-probate

See for example this thread:
https://forums.moneysavingexpert.com/discussion/6578752/deed-of-variation

Won't help. OP is still voluntarily giving up the money.