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  • FIRST POST
    • SPatterson
    • By SPatterson 6th Feb 18, 10:04 PM
    • 5Posts
    • 0Thanks
    SPatterson
    Inheritance
    • #1
    • 6th Feb 18, 10:04 PM
    Inheritance 6th Feb 18 at 10:04 PM
    Hello and thanks for reading this, if you do.

    My mother died a few months ago, and left me an amount of money. I'm wanting to notify whoever I need to once I get confirmation of when the inheritance is incoming, as I currently receive income-based ESA (support), PIP, housing benefit and council tax support. My partner, who cares for me full-time, receives carer's allowance.

    Unaware of the conditions to do with inheritance when receiving benefits, I've been researching it online and want everything to be above board. The amount I'm due is a 5-figure sum over the amount of 16,000 - which I'm aware is the limit for savings in order to keep receiving payments. I'm aware of the term "deprivation of capital", and know of a few examples of it. I agree with what I've read wholeheartedly, but know that it's kind of a grey area.

    I'm basically here typing this out on MSE as I want to know the answers to some questions:

    Can I pay, from my inheritance, for any of the following?
    - My mother's funeral in full, rather than split the cost with my father who has no savings and is struggling to make ends meet
    - Reimburse my father for the sum of around 1,000, for loans over the past few years.
    - Put money straight into JISA's for both of my daughters. I was thinking 10,000 split between them, however I'm not sure if there's a limit.
    - Pay off a year's rent on my home (a council property) in advance. I would guess at this being unacceptable - but I merely want to show that I'm not wanting to bleed the system for all it's worth. Bringing me on to the second point...

    If, after being able to use the inheritance for the means above, if allowed, and I end up within the 6k-16k bracket, how would my benefits be affected?
    - I understand there is a rule for savings between 6,000 and 16,000. How each 250 over the 6,000 limit would reduce my HB by 1 each week. Is this correct, and does it also apply to ESA and council tax support?
    - If not, how are they affected?

    This is a difficult time for me at the moment as I have my own health problems mounting up. With this unexpected inheritance, I merely want to do the right thing, i.e. put towards my mother's grandchildren's futures, as she wished. She was never bothered about doing a will, it was all spoken wishes.

    Thanks for reading, and especially if you can offer some answers.
Page 1
    • elsien
    • By elsien 6th Feb 18, 10:06 PM
    • 16,190 Posts
    • 40,904 Thanks
    elsien
    • #2
    • 6th Feb 18, 10:06 PM
    • #2
    • 6th Feb 18, 10:06 PM
    The funeral costs should come out of her estate before any bequests are made. Who is the executor?

    I don't think you'd get away with giving your daughters 10k between them to get below the benefits limit, if this hasn't been left to them in any will.

    ETA - just seen there isn't a will. Who is administering the estate and why is it coming to you not to dad? Are the intestacy rules being followed?
    Last edited by elsien; 06-02-2018 at 10:09 PM.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
    • kingfisherblue
    • By kingfisherblue 6th Feb 18, 10:15 PM
    • 7,675 Posts
    • 16,665 Thanks
    kingfisherblue
    • #3
    • 6th Feb 18, 10:15 PM
    • #3
    • 6th Feb 18, 10:15 PM
    Hello and thanks for reading this, if you do.

    My mother died a few months ago, and left me an amount of money. I'm wanting to notify whoever I need to once I get confirmation of when the inheritance is incoming, as I currently receive income-based ESA (support), PIP, housing benefit and council tax support. My partner, who cares for me full-time, receives carer's allowance.

    Unaware of the conditions to do with inheritance when receiving benefits, I've been researching it online and want everything to be above board. The amount I'm due is a 5-figure sum over the amount of 16,000 - which I'm aware is the limit for savings in order to keep receiving payments. I'm aware of the term "deprivation of capital", and know of a few examples of it. I agree with what I've read wholeheartedly, but know that it's kind of a grey area.

    I'm basically here typing this out on MSE as I want to know the answers to some questions:

    Can I pay, from my inheritance, for any of the following?
    - My mother's funeral in full, rather than split the cost with my father who has no savings and is struggling to make ends meet Funeral costs usually come out of the estate before any beneficiaries are paid
    - Reimburse my father for the sum of around 1,000, for loans over the past few years. Is there any evidence of these loans?
    - Put money straight into JISA's for both of my daughters. I was thinking 10,000 split between them, however I'm not sure if there's a limit. Almost certainly Deprivation of Capital
    - Pay off a year's rent on my home (a council property) in advance. I would guess at this being unacceptable - but I merely want to show that I'm not wanting to bleed the system for all it's worth. Bringing me on to the second point...

    If, after being able to use the inheritance for the means above, if allowed, and I end up within the 6k-16k bracket, how would my benefits be affected?
    - I understand there is a rule for savings between 6,000 and 16,000. How each 250 over the 6,000 limit would reduce my HB by 1 each week. Is this correct, and does it also apply to ESA and council tax support?
    - If not, how are they affected?

    This is a difficult time for me at the moment as I have my own health problems mounting up. With this unexpected inheritance, I merely want to do the right thing, i.e. put towards my mother's grandchildren's futures, as she wished. She was never bothered about doing a will, it was all spoken wishes. Unfortunately, if your mother's wishes were not specified in a Will, then it is likely that any money given by you to her grandchildren will be classed as Deprivation of Capital.

    Thanks for reading, and especially if you can offer some answers.
    Originally posted by SPatterson
    Answers in red. I'm not an expert on inheritances, but presumably as there was no Will, you have the relevant documentation and have inherited as next of kin? I assume that she was not married to your father or anyone else?
    • SPatterson
    • By SPatterson 6th Feb 18, 10:31 PM
    • 5 Posts
    • 0 Thanks
    SPatterson
    • #4
    • 6th Feb 18, 10:31 PM
    • #4
    • 6th Feb 18, 10:31 PM
    Hello. I appreciate the quick response.

    My parents never married, and seperated when I was young. However, they remained good friends and my father would help her during what was many years of worsening health.

    There was no Will, and I was her only child. The money is coming from a private pension, which I was only made aware of last week.

    I'm guessing there is no amount I could put into JISAs for my daughters, from the inheritance. I really wish my mother had done her will. She did get coaxed into doing one following nearly dying a few years ago, but it turned out she'd just written some things on a sheet of paper. And that was disposed of.

    Evidence of loans, no. It's sadly just a simple thought that my father's loyalty and continued scraping of his barrel deserved repayment. I can understand if there'd need to be proof somehow though. Of that, there is none.

    The funeral hasn't been paid for yet. It was only just billed to us last week, coincidentally.

    I'm naturally grateful and touched, for being left these funds by my Mum. However I don't want to have my claims for benefits stopped or paused, and then have to be re-assessed. I've had years of heavy-handed treatment and many assessments. Just want to do whatever is best that causes the least hassle.

    Thanks again.
    • poppy12345
    • By poppy12345 6th Feb 18, 10:50 PM
    • 2,430 Posts
    • 2,391 Thanks
    poppy12345
    • #5
    • 6th Feb 18, 10:50 PM
    • #5
    • 6th Feb 18, 10:50 PM
    Hello. I appreciate the quick response.

    My parents never married, and seperated when I was young. However, they remained good friends and my father would help her during what was many years of worsening health.

    There was no Will, and I was her only child. The money is coming from a private pension, which I was only made aware of last week.

    I'm guessing there is no amount I could put into JISAs for my daughters, from the inheritance. I really wish my mother had done her will. She did get coaxed into doing one following nearly dying a few years ago, but it turned out she'd just written some things on a sheet of paper. And that was disposed of.

    Evidence of loans, no. It's sadly just a simple thought that my father's loyalty and continued scraping of his barrel deserved repayment. I can understand if there'd need to be proof somehow though. Of that, there is none.

    The funeral hasn't been paid for yet. It was only just billed to us last week, coincidentally.

    I'm naturally grateful and touched, for being left these funds by my Mum. However I don't want to have my claims for benefits stopped or paused, and then have to be re-assessed. I've had years of heavy-handed treatment and many assessments. Just want to do whatever is best that causes the least hassle.

    Thanks again.
    Originally posted by SPatterson
    There's no ways to avoid that with a large sum of money that takes you over the 16,000 maximum for Income related benefits. Giving your money away to your children will definitely been seen as deprivation of capital and you will be classed as still having that money. Either way you won't be entitled to Income Related benefits.
    • Tom99
    • By Tom99 6th Feb 18, 10:59 PM
    • 1,950 Posts
    • 1,286 Thanks
    Tom99
    • #6
    • 6th Feb 18, 10:59 PM
    • #6
    • 6th Feb 18, 10:59 PM
    If your mother left no will and you are the only child then I think the funeral costs come out of the estate before the balance is paid to you. Why do you think your father might be liable for 50% of these costs?
    • SPatterson
    • By SPatterson 6th Feb 18, 11:07 PM
    • 5 Posts
    • 0 Thanks
    SPatterson
    • #7
    • 6th Feb 18, 11:07 PM
    • #7
    • 6th Feb 18, 11:07 PM
    The 50% split for the funeral costs was a verbal agreement between us. We're both not well off, but are the closest two people to her. She left very little money in her estate, apart from this surprising pension. My father knew nothing about it, and it's from way back when they were a couple.
    • kingfisherblue
    • By kingfisherblue 7th Feb 18, 8:58 AM
    • 7,675 Posts
    • 16,665 Thanks
    kingfisherblue
    • #8
    • 7th Feb 18, 8:58 AM
    • #8
    • 7th Feb 18, 8:58 AM
    The 50% split for the funeral costs was a verbal agreement between us. We're both not well off, but are the closest two people to her. She left very little money in her estate, apart from this surprising pension. My father knew nothing about it, and it's from way back when they were a couple.
    Originally posted by SPatterson
    As it was from when they were a couple, are you sure that you are the named beneficiary? Pensions usually have a named person, and even though they weren't married, your mum might have named her partner as they were still together at the time.
    • SPatterson
    • By SPatterson 7th Feb 18, 9:22 AM
    • 5 Posts
    • 0 Thanks
    SPatterson
    • #9
    • 7th Feb 18, 9:22 AM
    • #9
    • 7th Feb 18, 9:22 AM
    Hi. They've told me that there was no named person, and that as I'm the legal next of kin, I am the sole beneficiary. For what its worth, she had her national insurance contributions paid straight into this pension.

    Just to add, regarding the initial plan for my daughters to receive some of this inheritance when they're old enough - my youngest has a JISA, but my oldest's is actually a CTF stakeholder. Not sure if this makes any difference at all.

    Another thing I pondered using some of the inheritance for was driving lessons for my partner, and then a cheap car. I doubt this would be acceptable, following what I've already read from the responses in this thread. I struggle to get around due to a chronic condition, and normally would have no chance to consider us getting our own transport. Would just be a great help for my recovery, plus hospital appointments and such, which I keep having to miss.
    • Mojisola
    • By Mojisola 7th Feb 18, 9:28 AM
    • 29,122 Posts
    • 74,434 Thanks
    Mojisola
    Another thing I pondered using some of the inheritance for was driving lessons for my partner, and then a cheap car.

    I doubt this would be acceptable
    Originally posted by SPatterson
    It would be okay to do this - as would buying any equipment that would make your life easier or replacing old furniture or white goods, etc - as long as you buy mid-price items rather than top of the range stuff that would give the impression that you are spending money just to be able to reclaim benefits.

    Keep all receipts for new items.
    • Ames
    • By Ames 7th Feb 18, 10:19 AM
    • 17,140 Posts
    • 30,124 Thanks
    Ames
    What about using motability for your transport? That would be cheaper option as you only have to provide fuel.
    Originally posted by skcollobcat10
    And pay 55 a week. It's possible that insurance costs for a new driver would make Motability cheaper for the OP but for most people it's an expensive way of funding a car. About nine grand over the lease period with nothing to show for it.

    OP, as others have said, driving lessons are unlikely to be deprivation. But it doesn't matter what type of account your child has, it's the giving away of money that's deprivation, not where it's going to.
    Unless I say otherwise 'you' means the general you not you specifically.
    • Ames
    • By Ames 7th Feb 18, 1:30 PM
    • 17,140 Posts
    • 30,124 Thanks
    Ames
    That's why I was thinking of motability because most of the money in the inheritance will be expected to live on and pay bills.

    As it is, the family couldn't afford a car, or the maintenance involved, inheritance or not, that is the money allocated from PIP for such.
    Originally posted by skcollobcat10
    Buying a reasonably priced second hand car which meets the needs of a disabled person is highly unlikely to be deprivation. PIP money pays for a heck of a lot of insurance and maintenance before it gets more expensive than motability.
    Unless I say otherwise 'you' means the general you not you specifically.
    • xylophone
    • By xylophone 7th Feb 18, 6:47 PM
    • 25,182 Posts
    • 14,832 Thanks
    xylophone
    However I don't want to have my claims for benefits stopped or paused, and then have to be re-assessed.
    I should think that immediately you receive the lump sum you will have to report it as a change of circumstances.

    If, as seems likely, a reassessment is triggered and your benefits are suspended for a period, you will have the cash to use for your usual expenses and can show your receipts etc to the benefit provider(s) in due course.

    It would seem inadvisable to make loan repayments or gifts of any description until you have clarified the situation with DWP/the LA etc.
    • Lioness Twinkletoes
    • By Lioness Twinkletoes 7th Feb 18, 10:13 PM
    • 1,266 Posts
    • 4,557 Thanks
    Lioness Twinkletoes
    However I don't want to have my claims for benefits stopped or paused, and then have to be re-assessed. I've had years of heavy-handed treatment and many assessments. Just want to do whatever is best that causes the least hassle.
    Originally posted by SPatterson
    No, you want to keep your inheritance AND your benefits and are looking for a way to achieve that.
    • TELLIT01
    • By TELLIT01 8th Feb 18, 8:00 AM
    • 4,814 Posts
    • 5,131 Thanks
    TELLIT01
    However I don't want to have my claims for benefits stopped or paused, and then have to be re-assessed. I've had years of heavy-handed treatment and many assessments. Just want to do whatever is best that causes the least hassle.

    Thanks again.
    Originally posted by SPatterson
    I can understand your concerns about reassessment if you feel your treatment in the past has been heavy handed. That doesn't change the simple fact that receipt of a large inheritance will end your eligibility for Income Related benefits and you can't just give the money away to avoid having the benefit stopped. That will be treated as deprivation of capital with an end result that you won't have the money from the inheritance to live on, but you won't receive benefit payments either.
    • SPatterson
    • By SPatterson 8th Feb 18, 11:27 AM
    • 5 Posts
    • 0 Thanks
    SPatterson
    @xylophone
    Yes, as stated, I want everything to be above board. I plan to report the change of circumstances in advance, if possible, once I know the date I'll receive the inheritance.

    @TELLIT01
    Thanks. I am definitely worried about reassessment. This is not down to anything else but several experiences in the past of feeling completely ignored, and being lied to.

    Nevertheless, I'm learning more each day about the process of inheriting whilst claiming. The advice on here is appreciated. I fully expect to be living off this inheritance, but I hope when the time comes, there are few issues with my claim when I go below the savings limit. Any significant purchases I will be running by them beforehand. I don't want any trouble. Apart from driving lessons and a cheap car, I imagine it'll only be things like replacement furnishings, when necessary.
    • Mojisola
    • By Mojisola 8th Feb 18, 11:31 AM
    • 29,122 Posts
    • 74,434 Thanks
    Mojisola
    Any significant purchases I will be running by them beforehand. I don't want any trouble.

    Apart from driving lessons and a cheap car, I imagine it'll only be things like replacement furnishings, when necessary.
    Originally posted by SPatterson
    It's worth thinking about what your costs will be when you're back on benefits - if you've only got old, energy-inefficient white goods, it could really help if you bought new ones so that your future bills will be lower.
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