Inheritance for vulnerable family member affecting benefits

[LightandAiry]

Any advice welcome - my db is very vulnerable and lives on benefits. We are set to inherit I estimate around £140,000 each when our surviving parent passes away. I am pretty sure my db would get through this in months, and would lose all entitlement to means tested benefits for a number of years.

Does anyone know in these cases if benefits can restart after the money is gone? Also I need some advice about setting up a trust as this could be a way of making sure db's inheritance doesn't affect his benefits.

Thanks, any signposting welcome, I am very worried about them ending up destitute, there is little grasp on financial reality.

@LightandAiry what is your relationship like with your brother?

I have mental health issues and would not want my mam and dads hard worked for funds go to the government.

I have a very good reason why the government will never get another penny out of me and i will take as much as I can out of the system which btw is pennies they expect you to live off.

Any personal attacks will be ignored so gaslight or troll me all you want

You would need to read up about deprivation of capital rules.
If he's already on benefits and chooses to give up an inheritance, it will be treated as though he inherited the money anyway

There may be an exception if it goes into a disabled persons trust (specific criteria for this) but I'm not aware of an exception

You would need to read up about deprivation of capital rules.
If he's already on benefits and chooses to give up an inheritance, it will be treated as though he inherited the money anyway

This.

My sil lives in a mental institution (apologies if not the right word) She will never leave it (very long story). Fil has just made his will and left everything 50/50 to dh and his other brother. Sil gets nothing as, apparently, this would affect her benefits. I, personally, have had no say in the will and I do not necessarily agree with it. Also, if anything happens to one brother then his share goes to the other brother, meaning that spouses and grandchildren on the deceased brothers side would get nothing. It's a very strange will in my opinion and I do question the morals of it. My own family would never write a will in this way.

Ah I see....yes I just read on the internet that a deed variation on the will would be seen as deprivation of capital. Thank you Arctic Skewer will have to ask for advice on a trust. It will be his decision

Eightiesgirl I suppose the way round that will would be to put some in trust for the DC.

AndyPandy799 thanks for posting I think there's nice helpful people around on this thread so it's OK.

Sorry just skimmed through the thread so apologise if this has already been suggested.

OP, I honestly think Mencap Trust Services are your best port of call.

Our DD has SLD and she is our only DC and beneficiary. She will inherit a substantial sum when we pass and if she outlives us.

We set up a Trust fund many years ago via Mencap Trust which sounds ideal for what you need. They are excellent and will continue caring for your db's best interests even if he outlives everyone else.
It is pretty low cost to set up too.

@Lightandairy sorry can't copy and paste the website but if you just Google "Mencap Trust Services'" it will bring up the site for you.

I'm so sorry for the misinformation @LightandAiry. I'm glad @ArcticSkewer corrected it. I was confused because I'd done a deed of variation to my mother's will to change it so my inheritance went to a (vulnerable person's) trust for my daughter. So not the same. Apologies again.
Hopefully you have gained some good advice and at least now have more informed questions to ask. Good luck.

The elder in our family had arranged (via solicitor) to have inheritance for my father and sibling who are both on benefits put in a particular type of trust for disabled a person.

This is really interesting to read. I have a relative in this situation.

Yes benefits would rightly stop if he was to inherit that much money and he will be asked to pay his own rent. When the money runs out however yes he would be entitled to benefits again. Could a way around this be if the money was put into somebody else’s account? As universal credit wouldn’t know about the inheritance.
you could buy a small house without money actually depending on where you live it doesn’t have to be a flat where you have to pay service charge

Why are people saying the money should go in the trust the brother isn’t disabled either mentally or physically he’s just bad with money -therefore why would he want his money to be tied up in a trust ? he’s not disabled I’m not sure why everybody has assumed the brother is disabled Op has already said that he’s not disabled And hasn’t got any additional needs 😵‍💫

@Babooshka1991 he is not disabled

Bana2079 thank you for reply. Very much a relief to know the benefits can restart. I can't find much in the way of information.can you point me towards any websites?

@Banana2079 ah right, the title ‘vulnerable’ made me think that type of trust would be appropriate. My relatives have mental health issues so don’t work.

Good morning OP

Benefits may restart not will I am afraid.
It really comes down to what he spends the money on and how quickly he spends it.
What do you think he will do with the money?

This is tricky - good living whatever they want.