Not claiming future inheritance

Toto1972
Toto1972 Community Member Posts: 6 Listener
edited September 24 in Universal Credit (UC)

Hello All - I am currently claiming Universal Credit with LCWRA element due to poor mental health. My mother passed away earlier this year. I have been left a share of her house in her will - my share will be under £15000.
The solicitor fees/estate costs (probate is about to start - house sale - leasehold problems) are currently running at over ten thousand pounds and likely to get higher. I don't have the money to contribute to these fees and was asked to make a decision by my siblings as to whether I should give up my inheritance claim as they are paying all the costs. I have decided to give up my claim.

I did some digging and think this is called a renunciation or deed of variation. I haven't signed anything yet but I'm now worried that this will be classed as deliberately refusing funds and my benefits will be stopped. I feel trapped as I can't afford my share of Solicitors fees and other costs and if I refuse my inheritance then my benefits will be stopped. Would appreciate any advice please.

Comments

  • OverlyAnxious
    OverlyAnxious Community Member Posts: 6,489 Championing

    Hi,

    The solicitors fees should be taken from the inheritance before it gets distributed. They don't have to paid separately. I don't understand why your siblings are expecting you to give up your claim completely. You can afford the fees because your inheritance will cover them.

    Refusing inheritance can be classed as Deprivation of Capital. But that doesn't mean it'll stop your benefits. You would just be treated as if you had that money. So as long as your real savings, plus the amount of the inheritance after fees, don't come to more than £16,000 then you would be able keep your Universal Credit claim open.

    Deprivation of Capital is also about intent. So as long as you can explain that the refusal wasn't done for the purpose of keeping UC, then technically a Deed of Variation is allowed. It is likely to cause some hassle and complication for UC though.

  • Toto1972
    Toto1972 Community Member Posts: 6 Listener

    Thanks very much for your advice - I think my siblings are scared the house won't sell due to years left on lease and they will be left with it. I appreciate your help.

  • Rachel_Scope
    Rachel_Scope Posts: 5,417 Online Community Team

    Hi @Toto1972. I'm so sorry to hear that you lost your mother. How have you been coping?

    My understanding is the same as @OverlyAnxious in that any fees are taken from the estate. I found some information from Citizens Advice that states that 'fees can be paid from the estate' https://www.citizensadvice.org.uk/family/death-and-wills/dealing-with-the-financial-affairs-of-someone-who-has-died/ . However, I am not an expert in this so I would encourage you to speak to someone who is. Citizens Advice may be able to help you. You can find ways to contact them here https://www.citizensadvice.org.uk/about-us/contact-us/ .

    As said above, it can be classed as deprivation of capital and could reduce your benefits. We have some information here https://www.scope.org.uk/advice-and-support/how-savings-affect-means-tested-benefits#Using-your-savings-and-deprivation-of-capital .

    I apologise for lots of links, it's a complex situation and I'd encourage you to speak to an expert before you sign anything.

  • Toto1972
    Toto1972 Community Member Posts: 6 Listener

    Thank you for your advice - I will check out these links.

  • Stellar
    Stellar Community Member Posts: 616 Trailblazing

    you're not going to be able to give up your claim on the inheritance as UC will assume it's deprivation of capital, likewise the share in the house. you'll have no choice but to either cancel the home sale and move in yourself or live off your share of the inheritance till the house sale.

    this is a very common trap a lot of claimants and their relatives have no idea is coming when it comes to wills.

    ask your siblings to send you the money for the solicitors fees now, you pay it from your own account, then when the inheritance is sorted you pay them back from that.

  • Toto1972
    Toto1972 Community Member Posts: 6 Listener

    Thank you for your advice - yes it doesn't look as if l can give up my claim. There is no inheritance money apart from the house sale. I will have to look into this further. Sorry for late reply - couldn't log in to site.

  • OverlyAnxious
    OverlyAnxious Community Member Posts: 6,489 Championing

    Hi,

    As long as you've been left a share of the house sale - and not a share of the actual house - then the value of the house isn't counted as your capital until it sells.

    This means you don't have to live in it to keep UC. For people who are left an actual house, they would have to live in it otherwise it is counted as their capital.

    Is there any chance of getting the lease extended to make the house more desirable to buyers? I assume none of your siblings want to keep it and buy the others out?

  • Toto1972
    Toto1972 Community Member Posts: 6 Listener

    Thanks for your advice - Yes I believe my siblings have paid to have lease extended to make property more sellable but don't have funds to buy others out. I thought giving up my share of the house sale would cover what they have already paid out. It seems as this would be classed as deprivation of capital. I'll have to look into this further this week. Thanks again for your advice.

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