Benefits and receiving inheritance

PW891

@Muttleythefrog no loop hole is what I wanted to hear… I will be telling him that…

Muttleythefrog

https://forums.moneysavingexpert.com/discussion/comment/81856970#Comment_81856970

Income related (means tested) benefits like UC will be lost when capital over £16k. Capital includes things like cash. If he gets any non means tested benefits like PIP then they'd be unaffected. Is it a common scenario for people on benefits to receive inheritance… yes… and often that'll mean at least temporarily losing entitlement or some entitlement depending on how much. In some cases the inheritance is a property and that sometimes may not affect the claimant and especially if they move into the property and have no other one. Payment of debts is always allowed under Universal Credit rules (not seen as deprivation of capital whereas say giving large amounts of money away to a relative normally would be)… so if he has large debts then he could 'dispose' of some inheritance that way.

PW891

Thanks so much to everyone… You have given the answers we thought and knew…

PW891

@Ayr_Rage thats brilliant… I’m so glad I asked you guys in here… His inheritance will go into his back account and he will need to follow all rules that’s DWP state… No receipt of PIP… So he knows what’s what now… Thank you for your time…

Newcad

Just refusing to take an inheritance to which he was entitled would mean that the DWP could class the amount refused as "Notional Capital" and act as if he had the money anyway - so then his UC would still stop and he wouldn't even have the inheritance money to live off.

His only realistic option is to take the inheritance and use it for necessary living and houshold expenses (no extravagant spending, or trying to hide it) until his capital reduces below £16k, at which time he can then claim UC again.

PW891

@Newcad I just read about refusing inheritance… Even if you refuse they this can stop benefits if the see fit… You are right… He will need to live off it… Thank you so much for your time…

TELLIT01

The OP is of the same opinion as everybody who has responded. The only legal route available to the brother is to declare the money as soon as it is received, then live off it until the amount drops below £16k and then claim benefits again.

His apparent desire to live the high life of the inheritance and continue to claim benefits would be benefit fraud.

PW891

@TELLIT01 100% that… That will be my discussion with him… Thank you…

Pollycat

Hmmm.

So the OP's BiL wants to keep hold of the inheritance but also wants to keep claiming benefits.

Correct?

That is so so wrong.

I hope nobody facilitates this benefit fraud.

And I'm reporting this thread because it is 100% against the purpose of this specific board.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/81857160#Comment_81857160

The OP made it clear that they were not trying to commit benefit fraud, quite the opposite in fact. There has been good advice provided here so I can’t see why the thread needs to be removed, better to keep it as a warning to others.