Inheritance

jat77

It looks like I may be getting around 20k from an inheritance from my grandparents. It came as a shock as I was under the impression that I was being by passed and any money was going to my children. It turns out that when they went into the care home we were told that when the house was sold to pay for their care there wouldn't be any money left over and so it looks like the will  wasnt changed. Fast forward to this week and I'm getting 20k. My initial response was to still split it between the 2 children 10k each into some kind of trust fund. Will this be classed as a deprivation of assets? And if so I've read that it's upto the dwp to prove that I've dispensed with the asset in order to keep/get benefits. Even if I wasn't in receipt of any benefits this is what would have been done with the money as its what my grandad wanted. Any help is appreciated. 

chiarieds

Hi @jat77 - & welcome to the community. If you're on any means tested benefits, then once you receive this inheritance, as it will take your savings over £16k, then you'd need to report it. Sharing this between your children would still be seen as deprivation of capital in such an instance, despite your best intent to benefit them both. It really does depend on what benefits you're receiving.

jat77

Thanks. It's my understanding that the onus is dwp to prove that deprivation of assets was done for with a 'significant operative purpose' for claiming benefits. The dispersing of the capita to the children would jot be to keep benefits but to carry out my granfathers wishes, it's a moral obligation?

MW123

@jat77

Opting not to accept an inheritance is more common than one might realise. When you disclaim an inheritance, the assets in question remain within the deceased person's estate and undergo a process of redistribution. The challenge arises because you lose control over where the asset ends up, and it may go to someone you'd prefer not to have it. 

 If you believe that the distribution of the estate should be adjusted in accordance with your grandfather's wishes, I strongly recommended you seek legal advice for guidance on the appropriate course of action.

Kimi87

What benefits do you receive? 

You may view it as a moral obligation, but there is almost zero chance DWP won't view such an action as DoA.

Even if they weren't expecting to leave much, a new will could have been made in favour of their GGC. It wasn't so legally the terms of their will stand.

The money is yours and if you try arguing morals and verbal/non verbal wishes with DWP, I don't think you will get very far. 

poppy123456

MW123 said:

@jat77

Opting not to accept an inheritance is more common than one might realise. When you disclaim an inheritance, the assets in question remain within the deceased person's estate and undergo a process of redistribution. The challenge arises because you lose control over where the asset ends up, and it may go to someone you'd prefer not to have it. 

 If you believe that the distribution of the estate should be adjusted in accordance with your grandfather's wishes, I strongly recommended you seek legal advice for guidance on the appropriate course of action.

Opting not to receive the inheritance will still affect any means tested benefits they are claiming because it will be classed as DoC and they will still be classed as having the money.

2oldcodgers

MW123 said:

@jat77

Opting not to accept an inheritance is more common than one might realise. When you disclaim an inheritance, the assets in question remain within the deceased person's estate and undergo a process of redistribution. 

If someone refuses an inheritance it is kept within the estate. Why would you think that it would get divided up amongst those that have accepted the inheritance?

MW123

2oldcodgers said:

MW123 said:

@jat77

Opting not to accept an inheritance is more common than one might realise. When you disclaim an inheritance, the assets in question remain within the deceased person's estate and undergo a process of redistribution. 

If someone refuses an inheritance it is kept within the estate. Why would you think that it would get divided up amongst those that have accepted the inheritance?

If you are named as a beneficiary in a will but choose to refuse the inheritance, it is known as "disclaiming" or "renouncing" the inheritance. When you renounce an inheritance, you are essentially stating that you do not wish to accept the assets or benefits from the deceased person's estate. 

When you renounce an inheritance, the legal effect is as if you had predeceased the testator (the person who made the will). This means that you will be treated as if you were not alive at the time of the deceased's passing. As a result, your share of the inheritance will not pass to you, and the estate will be distributed as if you were never a beneficiary. 

However, if you want the funds to be distributed among your children or another relative instead of going back into the general estate, you should specify this in your renunciation. It's essential to clearly express your wishes in writing, and you may need to consult with a solicitor to ensure that your renunciation is legally effective and that your intentions are carried out. 

As Poppy has already confirmed If you are on means tested benefits contact the DWP they will provide guidance on how this decision may affect your benefits and whether any adjustments need to be made. 

poppy123456

MW123 said:

As Poppy has already confirmed If you are on means tested benefits contact the DWP they will provide guidance on how this decision may affect your benefits and whether any adjustments need to be made. 

That's not a good idea. When ringing any DWP department, you're speaking to someone from a call centre who have very little knowledge. For this reason you should never ring them to ask for any advice like this.

If they inheritance is refused, changes need to be reported and it will be down to a decision maker from DWP to make the final decision. Though it's almost definitely deprivation of capital.

jat77

Thanks everyone. I am reluctant to ask dwp for advice, as Poppy says it will just be a call centre reading from a script. Refusing the inheritance isn't really an option, as I'll be classed as dep of capital. The only means tested benefits we are on are hb, council tax benefit and tax credits. And with tc it won't effect anything til next year when I have to report the interest earned on the capital. I guess what I really want to know is if it went to a tribunal, does anyone have any insight on how it might play out, given that they have to prove that the capital was disposed of mainly to keep/get benefits, and there is case law where a judge sided for a lady who gave her inheritance to her children based on her late father's wishes. 

poppy123456

Housing benefit and CTR will almost definitely be deprivation of capital if you gave the money away. I have no advice on a possible Tribunal outcome i'm afraid. Once you receive the money you will need to make sure you report the changes to your local Authority and let them decide what happens next.

You also need to think about when you claim UC because deprivation of capital rules will also apply to that, even though you may have already given away your money before you claimed UC, it will make no difference.

Jimm_Alumni

I think this is a situation where you should speak to a specialist benefits adviser to get the best information. Turn2Us have a local adviser search that will find the nearest advisers to you. Just select "Benefits" from the drop down.

I hope you find the best outcome for you @jat77

2oldcodgers

woodbine said:

it is down to the executor to pay out the money after all debts have been paid in accordance with the last will, there are NO other options.

paid in accordance with the last will

Absolutely but have you ever seen a will that dictated that any inheritance not wanted should be shared out with those that wanted the inheritance?
I've dealt with many both as a Executor and as the Administrator and never have seen any such directive.
The deceased generally writes/dictates assuming that all inheritors accept the gift.
That portion of the estate not paid out in my opinion should remain within the estate and placed in a savings account opened by the executor in the hope that the inheritor changes their mind at some point in the future