Universal credit: refusing legacy = deprivation of capital?

Foraminiferum

If a person refuses an amount of money, say £20k, which has been left to them in a will because they want to remain on Universal Credit, is this considered as a "deprivation of capital" for UC purposes?  Even though they have never received the money?

Thanks!

teaselMay

It would appear to be the very definition of deprivation of capital

Muttleythefrog

Yes this would surely be defined as deprivation of capital as you are specifically refusing inheritance to gain benefit entitlement.

Flugelhorn

inheritance in a will is not the offer  of some money which can be turned down, it is a note of the fact that the money is now yours 

Keep_pedalling

Flugelhorn said:

inheritance in a will is not the offer  of some money which can be turned down, it is a note of the fact that the money is now yours 

It is possible to alter the terms of the will through a deed of variation, that however would still be deprivation of assets. 

sammyjammy

Its only £4k over the top level of capital allowed, do they have any debt they can repay or something they need to take them below the £16k on receipt of the money.

Foraminiferum

Flugelhorn said:

inheritance in a will is not the offer  of some money which can be turned down, it is a note of the fact that the money is now yours 

"If you simply do not want to receive a gift you have been left, you can tell the estate’s executors that you would like to disclaim it. If you have been left several different gifts, you can decide to keep some and disclaim others. You cannot disclaim part of a gift, for example, if you have been left a painting and £15,000 in cash, you could keep the money and refuse the painting, but you cannot decide to keep half of the cash gift.

If you decide you do not want to receive a gift left to you in a Will you can usually deal with this in one of two ways:

1. Disclaim the gift; or,
2. Arrange for a deed of variation to be prepared, passing the gift on and changing the tax effect of the Will."

BakerLaw, Solicitors

Foraminiferum

Thanks to everyone for their responses!

Grumpy_chap

Foraminiferum said:

If a person refuses an amount of money, say £20k, which has been left to them in a will because they want to remain on Universal Credit, is this considered as a "deprivation of capital" for UC purposes?  Even though they have never received the money?

Thanks!

Yes.

If you disclaim the gift, that is also DoC.
The rules you quoted refer to disclaiming the inheritance in isolation - not in the context of UC

Flugelhorn

Keep_pedalling said:

Flugelhorn said:

inheritance in a will is not the offer  of some money which can be turned down, it is a note of the fact that the money is now yours 

It is possible to alter the terms of the will through a deed of variation, that however would still be deprivation of assets. 

quite - so it would  effectively still belonging to the original beneficiary in this case, despite the DoV

elsien

Foraminiferum said:

Flugelhorn said:

inheritance in a will is not the offer  of some money which can be turned down, it is a note of the fact that the money is now yours 

"If you simply do not want to receive a gift you have been left, you can tell the estate’s executors that you would like to disclaim it. If you have been left several different gifts, you can decide to keep some and disclaim others. You cannot disclaim part of a gift, for example, if you have been left a painting and £15,000 in cash, you could keep the money and refuse the painting, but you cannot decide to keep half of the cash gift.

If you decide you do not want to receive a gift left to you in a Will you can usually deal with this in one of two ways:

1. Disclaim the gift; or,
2. Arrange for a deed of variation to be prepared, passing the gift on and changing the tax effect of the Will."

BakerLaw, Solicitors

All of which is true, but is not relevant to the OPs question. The answer to which has already been given, that it would be deprivation of capital.