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Inheritance and ESA
- Angel Cake
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4 years 1 week ago #258517 by Angel Cake
Replied by Angel Cake on topic Inheritance and ESA
Hi there Allamanda and Denby,
thank you for your replies.
I asked about Deed of Variation but once the money has been left in a will, you are liable for asset deprivation (I think that's the term) if you refuse it. The DWP are always informed that you have been offered the money, so your benefits are reduced accordingly. My Aunt (who left the money to me) died suddenly and I was not aware of her will. Even if I had been, I would not have expected to be receiving the money for many years to come as very sadly she died before her time.
Thank you for the tip about the receipts Denby, that's really helpful. I was hoping that it might be possible to use the money towards purchase of a house, but I don't know.
Many thanks again,
Ailsa
thank you for your replies.
I asked about Deed of Variation but once the money has been left in a will, you are liable for asset deprivation (I think that's the term) if you refuse it. The DWP are always informed that you have been offered the money, so your benefits are reduced accordingly. My Aunt (who left the money to me) died suddenly and I was not aware of her will. Even if I had been, I would not have expected to be receiving the money for many years to come as very sadly she died before her time.
Thank you for the tip about the receipts Denby, that's really helpful. I was hoping that it might be possible to use the money towards purchase of a house, but I don't know.
Many thanks again,
Ailsa
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- Rosemary Clayson
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4 years 1 week ago #258519 by Rosemary Clayson
Replied by Rosemary Clayson on topic Inheritance and ESA
Hi, Denby
Where you say you have two discretionary trusts for your family already, are you able to tell me (I understand if you don't want to say) what the annual running costs are?
I have set one up for my sons to be formed after my death in my Will, but it would be helpful to begin it now, move some funds into it, and have it running well before my niece inherits the headache of setting it up. But my solicitor (who is a specialist in estates and trusts) says it's not really viable for a trust of less than a million.
Also, are they complicated to keep up paperwork-wise?
Thanks if you can answer.
Where you say you have two discretionary trusts for your family already, are you able to tell me (I understand if you don't want to say) what the annual running costs are?
I have set one up for my sons to be formed after my death in my Will, but it would be helpful to begin it now, move some funds into it, and have it running well before my niece inherits the headache of setting it up. But my solicitor (who is a specialist in estates and trusts) says it's not really viable for a trust of less than a million.
Also, are they complicated to keep up paperwork-wise?
Thanks if you can answer.
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- denby
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4 years 1 week ago #258526 by denby
Replied by denby on topic Inheritance and ESA
Hi Becca, I am happy to answer but not sure it will help much. One trust was set up by our late Mum for my long-term mentally ill sister. The sum is a great deal less than you mention though. I have no idea of the annual running costs as Mum did not make me an Executor, only our other sister. After a number of years the one who should benefit has not had a penny out of it, as the Trustee one is a tight [insert part of anatomy] person. So sad and nowt I can do about it, hence my warning in previous post about trusting the Trustees. I have given up phoning the solicitor about it as the trustee sister told me off because he charged for his time listening to me, and although he is co-trustee he does not want to do anything.
The other one I do not know how much it will be for, but not all that much I don't think, and the aunt who has set it up to benefit our disabled daughter is still alive. The only useful info I have gained from the chats with aunt's lovely solicitor is that atm I am sole trustee and it is really easy to add other/s on later: no-one could think of anyone else suitable atm.
Best wishes, Denby
The other one I do not know how much it will be for, but not all that much I don't think, and the aunt who has set it up to benefit our disabled daughter is still alive. The only useful info I have gained from the chats with aunt's lovely solicitor is that atm I am sole trustee and it is really easy to add other/s on later: no-one could think of anyone else suitable atm.
Best wishes, Denby
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- JJ
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4 years 1 week ago #258533 by JJ
Replied by JJ on topic Inheritance and ESA
Hi Angel cake,
From my experience, you are allowed to use the money to buy a house that you will live in yourself & also you can pay off any debts. So if after paying for your home & paying any monies owing, then if your capital is below £16,000, then you should be able to retain your means tested benefits.
Good luck.
From my experience, you are allowed to use the money to buy a house that you will live in yourself & also you can pay off any debts. So if after paying for your home & paying any monies owing, then if your capital is below £16,000, then you should be able to retain your means tested benefits.
Good luck.
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- Catherine
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4 years 1 week ago #258536 by Catherine
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Catherine on topic Inheritance and ESA
HI Angel Cake,
I am posting this from personal experience, and not from a position of legal knowledge.
I know a gentleman who was left a considerable amount of money in his mother's will, although a lot less than half a million! I had been working with him for a while, and was able to demonstrate that his mental illness meant that he was not able to manage this quantity of money, which would also have effected his benefits. (Part of this evidence was his PIP score which showed that he was unable to manage a budget.) Because we were able to demonstrate his lack of ability of manage the money the solicitors involved agreed that it would be unlikely to be seen as deprivation of assets if the will was varied and the money put into a trust. If however we had gone through the variation process for the sole purpose of protecting his benefits we were advised that this would be deprivation of assets.
I am also currently a trustee for two discretrionary trusts, for different people. Both of these are well below the figure you suggest and there are no annual running costs since the trustees give freely of their time and prepare the accounts themselves. It someone is a trustee in a professional capacity then they are entitled to charge an hourly rate for their time. The total charge will be will be dependent upon how complex the trust is, if it is necessary to have frequent meetings between the trustees etc.
Catherine
I am posting this from personal experience, and not from a position of legal knowledge.
I know a gentleman who was left a considerable amount of money in his mother's will, although a lot less than half a million! I had been working with him for a while, and was able to demonstrate that his mental illness meant that he was not able to manage this quantity of money, which would also have effected his benefits. (Part of this evidence was his PIP score which showed that he was unable to manage a budget.) Because we were able to demonstrate his lack of ability of manage the money the solicitors involved agreed that it would be unlikely to be seen as deprivation of assets if the will was varied and the money put into a trust. If however we had gone through the variation process for the sole purpose of protecting his benefits we were advised that this would be deprivation of assets.
I am also currently a trustee for two discretrionary trusts, for different people. Both of these are well below the figure you suggest and there are no annual running costs since the trustees give freely of their time and prepare the accounts themselves. It someone is a trustee in a professional capacity then they are entitled to charge an hourly rate for their time. The total charge will be will be dependent upon how complex the trust is, if it is necessary to have frequent meetings between the trustees etc.
Catherine
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Seahorse24
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4 years 6 days ago #258563 by Seahorse24
Replied by Seahorse24 on topic Inheritance and ESA
Hi Catherine,I hope its ok for me to ask a question via this link regarding inheritance.
I have a very dear friend who was very badly abused by her father.He has left her 25,000 in his will, that the executor has sent in the form of a cheque.She is adamant that she will not cash it-to do so would trigger her into all sort of flashbacks/triggers and in fact wants to burn it.Would it be a problem with the dwp and seen as a deprivation of assets,or would her reason be one that could be accepted?She is on high rate pip and esa.She doesnt trust anyone in the family so doesnt want a discretionary trust.
Also do the dwp automatically know about this inheritance via probate? as my friend is very paranoid suicidal and on the edge and just wants to forget the whole thing..
Your thoughts would be greatly appreciated,as I try and support my friend at this time.
I have a very dear friend who was very badly abused by her father.He has left her 25,000 in his will, that the executor has sent in the form of a cheque.She is adamant that she will not cash it-to do so would trigger her into all sort of flashbacks/triggers and in fact wants to burn it.Would it be a problem with the dwp and seen as a deprivation of assets,or would her reason be one that could be accepted?She is on high rate pip and esa.She doesnt trust anyone in the family so doesnt want a discretionary trust.
Also do the dwp automatically know about this inheritance via probate? as my friend is very paranoid suicidal and on the edge and just wants to forget the whole thing..
Your thoughts would be greatly appreciated,as I try and support my friend at this time.
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