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Inheritance effect on benefits
- Alan
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3 years 10 months ago #255469 by Alan
Inheritance effect on benefits was created by Alan
I currently receive income based ESA, housing benefit, council tax relief and standard rate of PIP for daily living. I am a beneficiary in my aunt's will and the amount I will receive is likely to be in excess of £16,000. It looks like this will lead to my losing all the benefits apart from PIP. I am long term unemployed due to severe anxiety, OCD and body dysmorphia which greatly limit my life.
I am very concerned that the money I receive will dwindle very quickly (I pay £800 a month in rent ) and that I will then be in the distressing process of trying to re apply for benefits again. I had hoped to use some of the inherited money to get specialist help for my conditions as I have not had much luck with services offered by the NHS.
I have limited time as I expect the probate to be concluded possibly as quickly as the end of this month. Should I seek legal advice? Might a disabled person's trust be something I could consider? I appreciate any help and advice you can give.
I am very concerned that the money I receive will dwindle very quickly (I pay £800 a month in rent ) and that I will then be in the distressing process of trying to re apply for benefits again. I had hoped to use some of the inherited money to get specialist help for my conditions as I have not had much luck with services offered by the NHS.
I have limited time as I expect the probate to be concluded possibly as quickly as the end of this month. Should I seek legal advice? Might a disabled person's trust be something I could consider? I appreciate any help and advice you can give.
- Catherine
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3 years 10 months ago #255477 by Catherine
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Catherine on topic Inheritance effect on benefits
Hello Alan,
I am sorry to hear of your recent loss.
I would advise you to seek a legal opinion. I have known three very different examples of where a trust has helped with this kind of situation, but each situation is individual. Trusts are can be complex and such actions could lead to a deliberate deprivation of assets claim by the DWP. It is beyond the scope of this site to advise.
One of those examples was similar in some ways to yours. The money was not paid by the executors to the potential beneficiary until he had taken advice. That way the solicitors were able to modify the will and have the money paid into the trust rather than to him.
Catherine
I am sorry to hear of your recent loss.
I would advise you to seek a legal opinion. I have known three very different examples of where a trust has helped with this kind of situation, but each situation is individual. Trusts are can be complex and such actions could lead to a deliberate deprivation of assets claim by the DWP. It is beyond the scope of this site to advise.
One of those examples was similar in some ways to yours. The money was not paid by the executors to the potential beneficiary until he had taken advice. That way the solicitors were able to modify the will and have the money paid into the trust rather than to him.
Catherine
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Alan
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3 years 10 months ago #255494 by Alan
Replied by Alan on topic Inheritance effect on benefits
Hi Catherine, thanks for your help. I have no experience when it comes to dealing with lawyers. Do you think perhaps there are any organisations that might be able to advise me on where I could find the right legal advice? Am I right in thinking that in your example the beneficiary contacted the executors to ask that they withheld his payment until he was able to take legal advice? This would be extremely useful to me since the time frame appears to be short.
- LL26
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3 years 10 months ago #255495 by LL26
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by LL26 on topic Inheritance effect on benefits
Hi Alan,
I am also sorry for your loss. It is always difficult coping with bereavement especially if you have to resolve money issues. Catherine is correct, setting up a trust could well be if assistance here, and legal advice us crucial.
The limit for means tested benefits is £16,000 - if you inherit more than this, this will remove your entitlement to means tested benefit. Pip is not means tested so you are right to say this will still be paid. If you use your inheritance on necessary expenditure, which will include rent, food, car expenses and reduce the amount under £16k, you can reapply for means tested benefit. It is possible to use the money for other items- disability gadgets or appliances may be allowed, vital house or car repairs have previously been allowed as well. Debts that need to be paid off may also be OK. It is important to keep receipts for everything. As long as DWP can see that payments are for legitimate purposes, it is likely that they will be allowed. The reason why I mention this is to avoid allegations of 'deprivation of capital'. This means if you appear to have frittered money away buying ridiculous or unnecessary items DWP will say you have deliberately spent money to be able to gain benefits. However, by keeping receipts and just making normal payments, as outlined above then you are unlikely to infringe this rule. If you have to pay £800 for rent each month, with normal food costs and eg car expenses, then it is likely that your capital will soon arrive under £16k. However, it is important to get detailed advice from an advisor eg at local CAB or advice centre, giving all details and they will be able to advise fully. This is quite a technical area.
I hope this helps, and wish you all the best in the future.
LL26
I am also sorry for your loss. It is always difficult coping with bereavement especially if you have to resolve money issues. Catherine is correct, setting up a trust could well be if assistance here, and legal advice us crucial.
The limit for means tested benefits is £16,000 - if you inherit more than this, this will remove your entitlement to means tested benefit. Pip is not means tested so you are right to say this will still be paid. If you use your inheritance on necessary expenditure, which will include rent, food, car expenses and reduce the amount under £16k, you can reapply for means tested benefit. It is possible to use the money for other items- disability gadgets or appliances may be allowed, vital house or car repairs have previously been allowed as well. Debts that need to be paid off may also be OK. It is important to keep receipts for everything. As long as DWP can see that payments are for legitimate purposes, it is likely that they will be allowed. The reason why I mention this is to avoid allegations of 'deprivation of capital'. This means if you appear to have frittered money away buying ridiculous or unnecessary items DWP will say you have deliberately spent money to be able to gain benefits. However, by keeping receipts and just making normal payments, as outlined above then you are unlikely to infringe this rule. If you have to pay £800 for rent each month, with normal food costs and eg car expenses, then it is likely that your capital will soon arrive under £16k. However, it is important to get detailed advice from an advisor eg at local CAB or advice centre, giving all details and they will be able to advise fully. This is quite a technical area.
I hope this helps, and wish you all the best in the future.
LL26
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Tragobon
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3 years 10 months ago #255499 by Tragobon
Replied by Tragobon on topic Inheritance effect on benefits
Hi Alan, This link may be of help as there are trusts for disabled beneficiaries but it appears your Aunt should have made that clear in her will. Your solicitor may be able to help you with this? www.bromleys.co.uk/wp-content/uploads/20...eneficiaries-PDF.pdf
The following user(s) said Thank You: Alan
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3 years 10 months ago #255507 by Alan
Replied by Alan on topic Inheritance effect on benefits
Thank you to all for your kind and considered replies to my question. I have put together an email to the executors to ask that my payment be put on hold until I am able to seek legal advice. I will be contacting the CAB tomorrow. I have made notes on all your suggestions ready for action tomorrow!
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