We were in this situation a few years ago. We were upfront and phoned the DWP and explained that we would be expecting some money after a bereavement, but after a long time on basic Benefits, there was many things we needed to replace. We also said we were wanting to buy a Pre-payment funeral plan and have a decent holiday. They were fine about it and said as hubby was on State Pension/Pension Credit we could spend it on what we wanted. It could be different if Hubby had been of working age though. They said when it had come through and we had paid out for what we needed to replace etc, to contact them again and they would send a reassessment form out. We did this some time later; kept all the receipts (but they never asked for them) and we had no issues. Possibly being upfront first helped?
