inheritance, descretionary trust, ESA and other issues...

cheezluiz
cheezluiz Online Community Member Posts: 1 Listener
in Benefits and income
hello everyone. not sure if this is the right place but i could really use some advice.

im due an inheritance soon (over 16k)  and although i have some understanding of how it will affect me, i still have some questions that need answering so i can choose what the best option is for me to go forward. i'm currently in supported living and in receipt of SG ESA-IR (legacy) and PIP. my rent is paid for by the local council. im also in recovery from alcohol abuse. my mum sadly passed away last year and left her estate to me and my 2 siblings. they are joint executors of the estate and i am named as a beneficiary. my mums intent was to leave me some money for the future so i can use it to get back on my feet when i'm ready. there was also a concern that a large amount would also be too much of a temptation to me being an alcoholic hence naming my siblings as executors and not myself. now we've discovered that the way the will was written, the money im to recieve will drastically upset my benefits and living arrangements in which i am comfortable with and is really helping me with my mental health and recovery. 

i have exausted every avenue in the last couple of weeks trying to figure out what are my options with the money going straight into my savings which will be then classed as capital and i am no further wiser on what the best option is for me. i came across some information on descretionary trusts which i think is what my mum should of originally set up in her will. my understanding it that this would'nt of affected my means tested benefits and the money could be used as intended. apparently there is an option to amend my mums will to move the money into a trust for myself which we all agree would be the best option for me if it can be done.

my question is, would this be classed as deliberate deprivation of assets? 

any information on what the best thing to do in my situation would be helpful or if you could signpost me to any services out there that could help, that could be helpful too. happy to answer any questions if i have not provided enough information here.

thanks in advance

Comments

  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited March 2023
    You can change the will after the death - but not for benefits purposes. You will likely be seen to have deliberately deprived yourself of the capital in order to maintain your benefits and will be treated as if you still had access to the capital (which I think is what you suspect).
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    It will be classed as deprivation of capital. You have no option but to take the money and information all benefits departments of your savings. If any part of your ESA is contributions based this won't be affected (£117.60/week) PIP isn't affected either.
  • JBS2022
    JBS2022 Scope Member Posts: 2,074 Championing
    If you refuse the money then the DWP will behave as if you received it and it will affect your claim.
  • 2oldcodgers
    2oldcodgers Posts: 739 Connected
    cheezluiz said:


    i have exausted every avenue in the last couple of weeks trying to figure out what are my options with the money going straight into my savings which will be then classed as capital and i am no further wiser on what the best option is for me. i came across some information on descretionary trusts which i think is what my mum should of originally set up in her will

    my question is, would this be classed as deliberate deprivation of assets? 

    thanks in advance
    Setting up a discretionary trust should have been carried by mother before death.
    You cannot move the inheritance into one after death as you will be caught out with the deprivation rules.

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