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Universal credit: refusing legacy = deprivation of capital?

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  • FlorayG
    FlorayG Posts: 2,208 Forumite
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    I honestly can't see why you would want to anyway. You  get a gift of £20,000, you live on it until its gone, you then claim UC again. During the time you are living on your own money you have no obligations to provide endless proofs to the UC department and are free to live as you like plus you are saving money for the taxpayer
  • justwhat
    justwhat Posts: 723 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    FlorayG said:
    I honestly can't see why you would want to anyway. You  get a gift of £20,000, you live on it until its gone, you then claim UC again. During the time you are living on your own money you have no obligations to provide endless proofs to the UC department and are free to live as you like plus you are saving money for the taxpayer
    So you just fritter the 20k , When you could just claim UC and someone else could have the 20k.  More finacial sense the later.
  • justwhat
    justwhat Posts: 723 Forumite
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    This is not clear cut.  

    Deed of variation is not "always" DOC. 
    "Someone else contesting the Will /Inheratance and loosing the 20k is not DOC" 

    Its a grey area.




  • Muttleythefrog
    Muttleythefrog Posts: 20,430 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 29 May at 9:02AM
    justwhat said:
    This is not clear cut.  

    Deed of variation is not "always" DOC. 
    "Someone else contesting the Will /Inheratance and loosing the 20k is not DOC" 

    Its a grey area.




    Seems very clear cut case... the intent would be to gain (or not lose) benefits as they have stated... they could of course try to lie about that. "because they want to remain on Universal Credit"
    "Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack
  • kimwp
    kimwp Posts: 2,978 Forumite
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    elsien said:
    justwhat said:
    FlorayG said:
    I honestly can't see why you would want to anyway. You  get a gift of £20,000, you live on it until its gone, you then claim UC again. During the time you are living on your own money you have no obligations to provide endless proofs to the UC department and are free to live as you like plus you are saving money for the taxpayer
    So you just fritter the 20k , When you could just claim UC and someone else could have the 20k.  More finacial sense the later.
    How is using money to live on and meet your basic needs frittering it away?
    I object to my taxes being used to pay for people who could be supporting themselves just so that someone else can get the unearned windfall.
    Well said elsien
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

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  • justwhat
    justwhat Posts: 723 Forumite
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    edited 29 May at 10:33AM
    elsien said:
    justwhat said:
    FlorayG said:
    I honestly can't see why you would want to anyway. You  get a gift of £20,000, you live on it until its gone, you then claim UC again. During the time you are living on your own money you have no obligations to provide endless proofs to the UC department and are free to live as you like plus you are saving money for the taxpayer
    So you just fritter the 20k , When you could just claim UC and someone else could have the 20k.  More finacial sense the later.
    How is using money to live on and meet your basic needs frittering it away?
    I object to my taxes being used to pay for people who could be supporting themselves just so that someone else can get the unearned windfall.
    Well Said .... i object to alot of things also. Unfortunatly thats life. (I object to people avoiding  40% tax  and peeps that defer large pensions, but thats all within the law)

    I would say its frittering, if you are forced into using it for something you do not want to/have to use it on or is used needlesly.




  • justwhat
    justwhat Posts: 723 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    edited 29 May at 10:40AM
    FlorayG said:
    I honestly can't see why you would want to anyway. You  get a gift of £20,000, you live on it until its gone, you then claim UC again. During the time you are living on your own money you have no obligations to provide endless proofs to the UC department and are free to live as you like plus you are saving money for the taxpayer
    You could also use it to pay off debts, replace old white goods in your home, have a nice holiday that you previously could not afford. Seems a dumb choice to refuse it especially as is still has the same impact on your benefits. 
    This would probably be your best bet for disposing of the money. All allowed within the rules and if you get rid of it all, you will still have a viable UC claim. (as long as its not excesive in the eyes of UC). The holiday if excesive may be an issue.
  • kimwp
    kimwp Posts: 2,978 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    justwhat said:
    elsien said:
    justwhat said:
    FlorayG said:
    I honestly can't see why you would want to anyway. You  get a gift of £20,000, you live on it until its gone, you then claim UC again. During the time you are living on your own money you have no obligations to provide endless proofs to the UC department and are free to live as you like plus you are saving money for the taxpayer
    So you just fritter the 20k , When you could just claim UC and someone else could have the 20k.  More finacial sense the later.
    How is using money to live on and meet your basic needs frittering it away?
    I object to my taxes being used to pay for people who could be supporting themselves just so that someone else can get the unearned windfall.
    Well Said .... i object to alot of things also. Unfortunatly thats life. (I object to people avoiding  40% tax  and peeps that defer large pensions, but thats all within the law)

    I would say its frittering, if you are forced into using it for something you do not want to/have to use it on or is used needlesly.




    It's not used needlessly though, if it's used for food and housing and bills?? 
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
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