Inheritance effect on benefits

Hi Alan, good luck, I hope you can get this sorted to your satisfaction.

I have contacted my local CAB and also some solicitors. I am waiting to hear back from them. I have contacted the probate lawyers to ask if they can give me an idea of how much the inheritance is likely to be, when it will be paid, and to ask whoever is paying the money to contact me before doing so. I have been looking into disabled persons trusts and vulnerable persons trusts. My understanding is that discretionary trusts need to be set up when the will is first written and not retroactively. My biggest concern with all of this is that a trust could be set up but then it could be viewed as deprivation of assets.

There are 2 things I would like to get some clarity on:

1. Do my benefit payments count as savings when the DWP is looking at the total amount in my bank account or are they disregarded from the total sum?

2. If I receive £17,000, for example, in inheritance money then go out the same day and spend over £1000 on necessary expenses (rent, debts etc.) can I avoid losing my benefit completely OR am I legally obliged to declare any amount over £16000 as soon as I receive it and thereby automatically lose all means tested benefit?

Thanks for your advice

Hi Alan. I’m in a very similar situation as you were. Can you please tell me what your outcome was please? Many thanks in advance