help with savings and benifits

diane118

hi please could some one help me my friend mum has made a will leaving her house to her son on the condition that he pays his sister (my friend) £16.000 of his savings. If her brother had to go on

benefits

and had gave my friend her £16.000 would the

benefit

office not help him as they would say that he gave his savings away. thanks Diane

relay

I'm confused. Are you asking for help on how to claim benefits without declaring savings?

lilac_lady

Are you kidding? Benfefits are supposed to be there for people who NEED them.

dmg24

That does not make sense. She cannot make her son pay his sister out of his own money. Are you sure that the sister is not being given £16K out of the estate?

diane118

hi It is a condition of the my friend mums will my friendS mum has only her house to leave no money the will will leave her brother there mums house on the understanding that he gives his sister £16.000 or he doesn't get the house to live in, he lives there now. He has savings of £20.000 giving his sister £16.000 as that is what her mums will says would leave him £4.000 in savings left, to claim income support you can have savings of £6.000 but would income support say that that the £16.000 that he had to give my friend (his sister) was purposely giving his savings away. Do you understand that.

Scarlett1

diane118 wrote: »

hi It is a condition of the my friend mums will my friendS mum has only her house to leave no money the will will leave her brother there mums house on the understanding that he gives his sister £16.000 or he doesn't get the house to live in, he lives there now. He has savings of £20.000 giving his sister £16.000 as that is what her mums will says would leave him £4.000 in savings left, to claim income support you can have savings of £6.000 but would income support say that that the £16.000 that he had to give my friend (his sister) was purposely giving his savings away. Do you understand that.

If he gives 16k away with a view to claiming benefits then it can be seen as depreciation of capital which is benefit fraud and he will be treated as still having the money and he will get zilch

dmg24

She really needs to look at how she is wording the will.

As noted before, she cannot insist that the son gives the daughter money out of his own savings. However, she can say that the daughter gets £16K from her estate.

If the house is worth e.g. £100K, and this is the only thing in her will, then her estate will be worth £100K. Then she can state that £16K out of her estate will go to her daughter. How the executors decide to give this £16K will be up to them, and it is quite possible that they will say that the son does not have to sell the property, but that he can give the daughter £16K out of the equity in the property.

The difference that I am describing is that giving away £16K from savings will be Intentional Deprivation of Capital. However, if the £16K is from the estate, and therefore nothing to do with the son, it would be less likely to be seen as Intentional Deprivation.

The scenario that you are describing needs to be worded very carefully. I would take advice from the DWP before confirming the arrangements.

DaisyFlower

Surely if he has £20k in the bank he shouldnt qualify for IS anyway?

diane118

hi thank you for you reply my friend and her brother would be the executors does that mean that he could pay my friend the 16k from her mums estate out of his money, if in the future he had to claim income support would they see that he had to because of the will. Not sure what you mean about the equity in the house i don't think he could get a loan as he is nearly 60. Also what does DWP stand for thanks.

lil_me

Over 60 you can't claim income support.

DWP is Department of Work and Pensions.

getting-sorted-sarah

Department of Work and Pensions - the people who pay all the benefits. NO, they wouldn't care about the Will. A Will is not a way of avoiding benefit rules.

However, your friend's brother would not claim IS over the age of 60 he would claim Pension Credit, and with that he could have a lot more in savings and still qualify - I won't ask why he can't get a job.... but anyway he would qualify ok for that if he had to depend on benefits.