Inheritance and ESA

Hi lyn, I am afraid I think this is a worrying situation; Gary is right the DWP could decide the money is 'notional capital'. If they did your friend could be terribly affected financially, as if they do this they assume one is getting I believe £1 a week for every £250 or part thereof [£500 if a pensioner]. This amount, £100 a week on a £25,000 legacy, would be deducted from her benefits I think even though she wasn't getting any interest at all even if she took the money. So please move heaven and earth to find some reliable legally qualified advice for her, certainly pursuing the mental health angle if possible. Also, even now it would be helpful if she can keep all receipts for everything, as her 'typical lifestyle' could come up in any future dispute. And if she did cash the cheque, it is even more critical to keep receipts for everything, including especially getting receipts for any money she gave away [a bad idea unless she has had sound advice that it was OK], as she could be accused of 'intentional deprivation of capital'
Best wishes, Denby

Thank you, Denby

that's really helpful. I need to find out a lot more, I think.

as regards the trust for your sister, I'd think the Court of Protection would be interested, especially if your sister would be a beneficiary of whatever remained in the trust when it is eventually dissolved.

Thank you, Catherine, I appreciate your reply

Thankyou Denby,this is so helpful and I will advise my friend to get advice.

Becca thanks for this thought. Yes the stingy trustee would stand to benefit [as would I/our children if we survive our elder sister]. Will have to look into it re Court of Protection, though the issue is the intended beneficiary does not express wanting any money spent on her. She lives so frugally by choice, she has a little in the bank [not over the £6,000 though] even on benefits. And if I s__t-stir my trustee sister will be furious and the poor poorly one will then be upset.
Denby