Inheritance and Benefits

[Lester Burnham]

Hi All

 

I am retired and in line for a six figure inheritance. Some of my benefits are means tested and I would like to pass over my entitlement to inherit to my adult children, with of course the permission of the other executors and beneficiaries. This matter is at the earliest stage, the application for probate is about to be made. 

 

Am I correct in thinking that as long as I don't make the mistake of taking the money and then passing it to the children then I am acting lawfully?

 

Regards and Thanks

 

TL

 

Edited December 18, 2021 by Lester Burnham

[honeybee13]

Hello, welcome to CAG.

 

Could I ask which means-tested benefits you're on please?

 

Best, HB

[Lester Burnham]

 For example, direct payments from the local authority for care in my home. 

Edited December 18, 2021 by dx100uk
unnecessary previous post quote removed

[honeybee13]

Thank you. I think you could have a problem under the Deprivation of Capital rules.

 

I'm not an expert but my understanding of the philosophy is that money you come into is meant to be used to look after you and take pressure off the state or the council, rather than being given to someone else, for whatever good reasons. Councils have quite wide powers and I believe there's quite a lot they can do if they believe Deprivation of Capital has happened.

 

This link is talking about Universal Credit but I believe the principle is the same. Have a read around on Deprivation of Capital.

 

HB

 

Benefits Calculator - entitledto - independent | accurate | reliable | www.entitledto.co.uk

WWW.ENTITLEDTO.CO.UK

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Check what benefit entitlement you are entitled to. The entitledto benefits calculator will check which means-tested benefits you may be entitled to...

 

[Lester Burnham]

Thanks HoneyBee

 

Do those rules realistically come up for scrutiny during the handling of the estate?

 

Or more specifically, would the solictor handling the estate be compelled to ask questions regarding the benefit status of the transferee, along the same lines as being compelled to check the Insolvency Register?

 

regards

TL

Edited December 18, 2021 by Lester Burnham

[honeybee13]

I have no direct experience of this so I don't know the answers to what you're asking. I thought you said you wouldn't be the transferee though.

 

What you're trying to do isn't justifiable on moral grounds and you seem to saying you would rely on the council not finding out.

 

Be aware that if the council were to find out about this, they have powers to go back an unlimited time to check what's happened. If they find out that you deliberately gave away money that was due to you, they can treat you as if you still had it and reduce the amount they pay towards your care.

 

HB

[Lester Burnham]

Hi HoneyBee

 

Sorry about that, I would be the transferor not transferee.

[Andyorch]

Similar situation may be of interest to you:-

Can I give my share of my father's estate in his will to my children instead? | This is Money

WWW.THISISMONEY.CO.UK

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I don't need the money and would rather that my children had the money to help them. Can I turn down the bequest in the will, or do I have to accept it and pass it on myself?

 

 

Andy

 

 

[Lester Burnham]

Thank you Andy!

 

Does anyone have a list of the statutory checks a solicitor managing an estate must conduct before disbursing monies to beneficiaries?

 

For example, I know they are required to check the Insolvency Register for bankruptcy, DRO and IVA issues. What are the other checks they are legally obliged to conduct?

[unclebulgaria67]

Yes beware of deprivation of capital rules which apply to some benefits.

 

This link is for the Capital section of the Advice for Decision Makers which is available online.

 

e.g.   https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1038390/admh1.pdf

 

 

[Andyorch]

Discussion: Disclaiming an inheritance - effect on means-tested benefits - Rightsnet

WWW.RIGHTSNET.ORG.UK

 

 

What if I don't want my inheritance? - OM&M

WWW.OMMLAW.CO.UK

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If you have an objection to receiving an inheritance bequeathed to you, there are things that can be done. Find out more in this article.

 

[Lester Burnham]

Thanks Uncle Bulgaria

 

Although the guidance applies to UC claimants it certainly gives a clear indication of  the government's interpreation of the law.