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Topic: Inheritance and Benefits

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jsparkes201148

via mobile 12/10/2023 at 10:02am
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Hi
Hope you knowledgable people can help.
Brother in law is 66, just getting his State Pension, he receives some benefits because if a disability.(Rent and Council tax I think)
His mum died and left him £60000. He spent £13k upgrading his car.
DWP have told him that to continue receiving benefits he must spend £35000.
I think it is not allowed to give it away to family
He doesn’t know what he can spent it on without wasting it
Is there a way around this ?
Thanks

Rob and Tina

via mobile 12/10/2023 at 10:40am
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No is the answer.
It is impossible to answer this on a forum because there are so many ins and outs.
We have been through a very similar situation ourselves, If he spends the money it will classed as deprivation of capital and treated as if he has still got it, he will also have to pay the rent and council tax now out of the money, until his Money comes down to a level he can start claiming again he then may be able to get pension credit. He will also have to show bank statements and be quizzed over what he has spent.
Sorry
Tina

daveyjp

12/10/2023 at 11:05am
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Spending money on rent and council tax isn't wasting it.

He should be looking at how he can make what is left produce some return and get it in a high interest savings account asap.

The interest alone may well pay his council tax. 5% on £40k is £2k a year.

jsparkes201148

via mobile 12/10/2023 at 3:30pm
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So it appears the DWP advice to ‘spend £35k’ is not good advice.
By wasting it I meant him spending £35k because he was told to like buying watches jewellery etc that he doesn’t need.
Could he spend it on a caravan I wonder ?

Dot P

via mobile 12/10/2023 at 7:33pm
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Seek solicitor advice because it sounds he may well have misunderstood.
The more likely is he isn't eligible for some benefits that are means tested.
RobTina is correct re deprivation

daveyjp

12/10/2023 at 9:38pm
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No need to pay a solicitor, ageuk will provide excellent advice for free.

Once you have over £16k in savings some benefits may stop.

Buying a caravan won't be considered deprivation of assets.

iank01

13/10/2023 at 9:00am
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Quote: Originally posted by jsparkes201148 on 12/10/2023
Hi
Hope you knowledgable people can help.
Brother in law is 66, just getting his State Pension, he receives some benefits because if a disability.(Rent and Council tax I think)
His mum died and left him £60000. He spent £13k upgrading his car.
DWP have told him that to continue receiving benefits he must spend £35000.
I think it is not allowed to give it away to family
He doesn’t know what he can spent it on without wasting it
Is there a way around this ?
Thanks

His PIP or DLA will not be affected however he is now in a position to pay normal rent and council tax and there is no way around it. Only fair I guess?

Rob and Tina

via mobile 13/10/2023 at 9:09am
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Buying a caravan could be regarded as deprivation of capital if for instance he buys a caravan and then claims benefits the nex month, deprivation of capital is seen as deliberately disposing of capital in order to claim benefits.

navver

13/10/2023 at 7:15pm
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He should get a 25% reduction in council tax as a single occupant.

JuanHuNose

13/10/2023 at 8:32pm
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Rather that `wasting` £35K he should spend it on women and drink.

Devonatheart

via mobile 14/10/2023 at 2:38am
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Quote: Originally posted by JuanHuNose on 13/10/2023
Rather that `wasting` £35K he should spend it on women and drink.

And just waste the rest! 🤷👍

Mitchamitri

16/10/2023 at 8:28am
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Or men and drink. Definitely drink, though. And maybe get some chickens. Give a man an egg and he'll eat breakfast, give a man some chickens he can have an omelette for lunch and a souffle for tea as well.

I find it a curious situation to be overly concerned about having too much money to claim benefits, or am I missing something?

DeborahTurner

via mobile 19/10/2023 at 12:40am
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Spend it on whatever he usually spends his income from benefits on?

Has he long dreamed of having a caravan?

Hedgehugger

19/10/2023 at 10:08am
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He is now in the fortunate (though through sad circumstances) position of not having to claim benefits. Some benefits are only available to those in reduced circumstances, which he isn't any more. He has money in the bank. Sooner or later, depending on how he spends it, he will come within the benefit threshold again. In the meantime, he can enjoy the reassurance that having a financial cushion brings. (My State pension, my only income, provides me with £10 a week more than would entitle me to Pension Credit with all the advantages that gives. There's nothing I can do about it.)

-------------
Always edited for sloppy typing - when I spot it!

DeborahTurner

via mobile 19/10/2023 at 2:51pm
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It is the sort of situation that demonstrates ‘the rich get richer’. Were he able to work his inheritance could fund a deposit for a mortgage, pension savings and an increase in retirement opportunities or whatever. As it is it will replace his regular income until it has gone.

But he might be as well to future proof as much as possible. As in buy things that wouldn’t normally be possible on benefits and will save him that expense once his balance has dipped to the relevant threshold.

As soon as he reaches that threshold he should start his claim again.

Futureproofing measures I would take would be: replace my ancient computer, buy a top quality waterproof coat that will last years, ditto walking boots.

BearPear

via mobile 20/10/2023 at 4:13pm
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I’m surprised that a benefit office has told him to “spend it”. They may have said he has to have below £16k to continue to be eligible for means-tested benefits. I worked 35 years in benefits advice and if a person spent or gave away money it was always investigated. In theory if you have a large sum then benefits aren’t needed? I’m talking about means-tested, not disability which are not dependent upon finances. AgeUK are great for advice.

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