What would happen in this scenario?

[GarnetsandRubies]

Single person on benefits who does not work inherits money, then unexpectedly dies soon after. They were not married, nor in a partnership. They do have children though. There is no will. What would happen to the money?

I'm asking this to settle a debate, we can't find out online which of us is right, or if we are both wrong

It would go to the nearest blood relative so the children

It will go to their children. Unless the inheritance took them over the threshold for claiming benefits (savings if £16k or more) and they carried on claiming without notifying DWP, in which case it's possible DWP could seek the return of their benefits payments - I'm not sure they would do that though.

Would any of it be used to pay for the funeral?

assuming there are no debts ie mortgage ,the funeral gets paid first

It would be used to pay any debts, then funeral then split between closest living relatives so in this case the children.

This would be the same for someone working who inherits and then dies. Benefits have nothing to do with it.

It pays any debts, then funeral costs claimed out of it then to closest relative (although reallybant relative could fill out the forms to make a claim 'heir hunters' style.

Thanks this has been really helpful

What was the debate?? What were the two opinions?? I'm nosey....

Of course it would pay for the funeral. Who else would pay for the funeral if there is already money to cover it?

Pays for funeral first, then any debts from the estate.

Would any of it be used to pay for the funeral?
The state won’t pay for the funeral if the deceased has the money to pay for it, if that’s what you’re asking.

If they were on benefits and she inherited and it was over £16k the DWP can and do take back the money - any difference in what she was over her entitlement to benefits .
This would be taken from her estate so if her kids get the money they should hold on to it in case they need to pay anything back . The DWP are absolutely the worse in having no mercy on stuff like this .
I’m in the process of sorting out my dads estate and I know that there will be at least one Attendance Allowance payment to go back and probably a state pension payment as well .
If they use the Tell us once system the DWP will know within a few weeks .
I’ve left money in his account so that this can be paid back when it’s needed