Inheritance rules

destinymoon
destinymoon Community Member Posts: 138 Empowering
in Benefits and income

I am named in a will that is currently going through probate. When do I need to inform DWP (pension credit) and the council . Is it now or only when probate granted and finalised? I am inheriting money and a half share in a property. I rent from the council. I keep reading conflicting information. I suffer with extreme anxiety and dealing with anything like this I find most difficult. Any advice welcome. I understood it was when I am actually in receipt of monies and property but looking on AI today it’s saying inform them now? Very confusing. Thank you

Comments

  • SheffieldMan1976
    SheffieldMan1976 Posts: 3,145 Connected

    I'm in a similar position, worrying about whether I'd get a penny if anything happens to one or both of my Parents in a few years.

    Probably not because the DWP would likely take it off me as inheritance tax.

    Also, don't believe everything AI tells you, most of it's a load of bobbins.

  • Kimi87
    Kimi87 Community Member Posts: 8,914 Championing

    You shouldn't rely on AI for accurate information.

    When your name goes on the house deeds & when you receive the money into your bank account is when you let DWP know.

  • ChrisR777
    ChrisR777 Community Member Posts: 1,412 Trailblazing
    edited June 28

    I told my parents to leave me out of their will when they asked, it would just lead to complications. I believe they are leaving their money to my daughters and other relatives.

    In my view, unless they could leave me enough to live on, it's best to stick with the benefits. What could I buy anyway? I'd still be disabled.

  • OverlyAnxious
    OverlyAnxious Community Member Posts: 6,270 Championing
    https://forum.scope.org.uk/discussion/comment/1135358#Comment_1135358

    Inheritance tax can't take 'everything' as that's not how tax works. (It's also managed by HMRC, not DWP).

    Property below £500,000 (half a million) left to children is exempt from IHT. Unless your parents live in some sort of mansion, I suspect the average house price in Sheffield is still well below that number!

  • OverlyAnxious
    OverlyAnxious Community Member Posts: 6,270 Championing
    https://forum.scope.org.uk/discussion/comment/1135361#Comment_1135361

    It's nice to see someone with rational reasoning… When I've mentioned this in the past with older relatives it hasn't gone down well. 🙄

    I'm in the same position, no 'small' amount of money could make any difference to my situation. I'd need something like £350k to buy an accessible property in my area. Anything less than that would just stop my benefits for no gain whatsoever. Worst case scenario I'd end up existing long enough for the money to run out then I'd have to go through all the hassle of applying for benefits again.

  • destinymoon
    destinymoon Community Member Posts: 138 Empowering

    Thank you everyone for responding. I have to inform them tomorrow as probate now been granted. It is a lot of hassle and seems I need to get a surveyors valuation. The property is not worth a lot and proceeds will be shared once sold. I am hoping they will give me 6 months disregarding the property and allow me time to sell it. I do know my pension credit will change due to monies now being in my account since Saturday. I am on pension guarantee credit. I really don’t deal very well with things like this. I’m hoping I can sort it out relatively stress free. Somehow, I don’t think so!

  • destinymoon
    destinymoon Community Member Posts: 138 Empowering

    Continuing on from previous post… DWP have been informed of change in circumstances after probate and will adjust pension credit accordingly. It will continue at a reduced rate. I also requested a 26 weeks disregard of the property. I am waiting for a letter from them now to see what happens next. I have also informed housing and council tax support and emailed evidence etc as they requested. I have also informed them that as I am still in receipt of pension credit guarantee credit, albeit at a reduced rate, my housing benefit and council tax support should continue. At least this is what DWP told me, as I am on the guarantee element I am protected. I trust this information is correct? Any advice always welcome. Thank you again

  • SheffieldMan1976
    SheffieldMan1976 Posts: 3,145 Connected
    https://forum.scope.org.uk/discussion/comment/1135450#Comment_1135450

    Indeed, as I recall, back in November 1997, my Parents bought the House for about £78K.

    Which was fully paid off several years ago because Dad was able to retire at 65 (he'll be 78 in October)

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