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pension credit and inheritance

petrocelli
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2 years 10 months ago #268960 by petrocelli

pension credit and inheritance was created by petrocelli

Hi all,

First time using Forum since new system...............May I please ask something on behalf of a friend?
They are in receipt of Pension Credit and are potentially going to inherit some monies that will throw their life into turmoil. Currently the deceased's Estate is in the hands of Solicitors to be executed. My friend won't know how much they'll inherit until the Solicitors have completed their work.

It's all shocking enough for them for the close and sudden loss, but they're now worried sick about their home (as it's social housing) and their Pension Credit. {I know you can't advise with regard to social housing in such an instance but have mentioned it just to give the full picture!

My question regarding Pension Credit is, how long after the Solicitors advise my friend of their total inheritance do they have to advise DWP?

Heartfelt thanks
P:woohoo:

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Gary
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2 years 10 months ago #268988 by Gary

Replied by Gary on topic pension credit and inheritance

Hi petrocelli

Welcome to the new forum and layout.

Your friends inheritance will not affect their social housing, unless they inherit a house in which case they may want to move.

In regards to Pension Credit, they will need to inform Pension Credit helpline; 0800 731 0469 as soon as the solicitor releases the inheritance, the DWP will be informed.

Depending on the amount of inheritance they receive, they could still be eligible to claim PCG.

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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Angel
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2 years 10 months ago #269001 by Angel

Replied by Angel on topic pension credit and inheritance

“If you have £10,000 or less in savings and investments this will not affect your Pension Credit.”
This is taken off the Gov.UK website.

I suppose really, it will depend on the amount they receive. If they ‘go over’ 10K, they can get ‘prepaid funeral plans’ which can be taken off the capital amount to take it down to 10K..

* I would also argue that they can replenish / replace furniture, household stuff like bedding, towels, kitchenware etc and white goods [and maybe a car/ computer] within 12 months of receipt of the cash] to take the amount to below 10K. *Remembering to keep records of all expenditure on large items*. Chat it over with someone at CAB, but to me that seems reasonable. They are retired if they are on Pension Credit. Replacing everything now would be sensible if indeed it’s needed.

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Angel
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2 years 10 months ago #269040 by Angel

Replied by Angel on topic pension credit and inheritance

To answer your other question, I would only inform the DWP about any money if it is still over 10K after 12 months (see my other post).

The ‘rule’ seems to be, that if you buy a Porsche, you are obviously trying to get ‘rid’ of money, but if you buy a ford fiesta, that is completely reasonable.

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LL26
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2 years 10 months ago #269064 by LL26

Replied by LL26 on topic pension credit and inheritance

Hi petrocelli and Angel,
I'm not sure you should consider never disclosing an inheritance under £10k to DWP. It is entirely possible that DWP might send out an income/savings form which will have to be filled out or benefit is likely to be cancelled. It will be fraud if you do not give details of the inheritance.
I am a great believer of being up front with DWP. If they find out you have had an inheritance, (and DWP do do data matching exercises with other departments such as HMRC and are also aware of deaths etc and potentially inheritances!) there may well be a full blown investigation checking everything.
Further, whilst you can make purchases with your £10k + inheritance, in order to avoid problems with DWP, purchases or spending has to be necessary. Paying off debts, or even a mortgage may be ok, simply buying a whole load of household stuff, will not be enough to avoid DWP claiming you have 'deprived yourself of capital' , and hence should not be allowed to claim benefit.
Purchases will have to be necessary, so yes, a new bed to replace the one with springs hanging out is probably OK, with a receipt. A new shiny food mixer just because it goes three times faster than your old one is unlikely to be allowed.
I advise transparency with DWP at all times!
LL26

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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petrocelli
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2 years 9 months ago #269081 by petrocelli

Replied by petrocelli on topic pension credit and inheritance

Obviously it all hinges on what debts the deceased has left to be cleared by the Solicitors when compiling the Estate. However, there's a possibility that, inheritance might involve my friend then having enough to possibly purchase a flat of their own/purchase the council bungalow they are living in etc., etc. My friend had heard of someone who was asked by the council to leave due to the amount of inheritance they'd received and expected them to then free up the council property........So, poor thing, on the one hand it's a blessing to have an inheritance, on the other, their whole life's going to be turned upside down! My friend's nearly 80yrs old!

Thank you all for your kind brainstorming and comments. Good to read that, as I thought would be the case, my friend has the breathing space whilst the Solicitors sort out the Estate and doesn't need to contact DWP until monies enter their account. I shall also advise them to keep receipts etc., if they do go spending and also to ensure that they are justifiable purchases.

If anyone can think of anything not covered so far by you lovely B&W family, do speak up.

With heartfelt thanks and appreciation
P

PS.....Can't find 'favourite' and smileys on this new system!!!!!

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