Inheritance and deprivation of assets

[whiteroseredrose]

If you are named as the beneficiary of a relative's pension after death but you are on benefits, does anyone know if social services would see it as deprivation of assets if you refused the money and put it into a trust instead?

The relative could potentially opt to set up and leave the share in trust for this individual if criteria are met: this is fairly common in the case of individuals with profound disabilities and / or who do not have full capacity as it allows trustees to make legal decisions about how the money can be used and protects it for benefit purposes. Otherwise in deprivation of capital cases the test looks at the intention behind getting rid of the capital and whether the intention in disclaiming the inheritance was to maximise a benefit claim. It would be difficult in most cases to demonstrate that this wasn’t the intention. An individual can’t make a decision to put their own inheritance in trust so that they are entitled to more benefits.

Thank you comtesse.

I think it would definitely be noted and investigated in the majority of cases.

what are the figures roughly involved?

Hi. I'm not 100% sure but I think over £50k. There is a trust for assets from the will but the pension isn't part of the estate.

Benefits are intended as a safety net not a way of life . If you inherit a substantial sum then you should give the benefits up.

Could you not accept the benefits then as approaches threshold re-apply as needed? Is it not quite a lot like £16k? Which is more in savings than lots of people I'd imagine!

Hi. It isn't me. This has come up with a family member of someone at work. I tried Googling but it isn't clear.

I agree. But I've luckily never had to apply for benefits so I don't know if it is a difficult process or not.

I don't think you mean Social services...surely its the DHSS.

Ha ha Bogeyes, that shows my ignorance! It probably would be DHSS.

Unless someone tipped them off, I'm not sure how they would ever find out that the inheritance was refused tbh.

The dhss hasn't existed for decades!!

It is now the DWP.

Since the 80s! It's DWP now

Putting it in trust is not ‘refusing the money’ and people can be very quick to tip off DWP that money has been inherited. Word does get out.

I think it's about intent.

If one deprives oneself of capital with the intent of acquiring, retaining or increasing benefit then there's a risk of being seen as having notional capital ie treated as though you've still got it.

If you don't disclose the transaction at all then you're in fraud territory.

You would be treated as if you had the assets even if you refused it .

The only way it could work is if on the death of the person it’s mentions in the will that xxx amount is in trust for person A

It has to be in the will

once the person has died it’s to late to create a trust for the money so that you can have it but keep benefits

my brother was on benefits ( long term disabled )

so my parents will left what would have been his share to his son who was then able to buy a house
( they actually left it to all the grandkids )

plus with the potential new laws of the dwp being able to check bank accounts it would be much harder to get away with

If they are refusing the inheritance, yes it would be deprivation of assets.

If they are on benefits due to disability m there are specific trusts that can be open to protect that money and still allow them to receive benefits.

I was wondering what the DHSS was…..

Department of Health and Social Security. Or to its insiders the Department of Stealth and Total Obscurity.....

DHSS became DSS in 1988 and then became DWP in 2001.