inheritance and money

[Member869894]

My mother plans on leaving approx. £50 k each to her 4 children. My brother is on sickness benefits and has been for years. Will an inheritance affect his benefits and if so is there a legal way to avoid it?

Does your brother have kids? If so, might it be worth giving your brother 6k, and any remainder to his children?

What benefits is he on? Pip and contribution esa are not means tested so if he is on those he can keep them and the inheritance. If he is on a means tested benefit, like income esa then he will not qualify for that benefit until his income falls below (probably £16,000).

The inheritance will affect any means tested benefits. I think there is a way to leave money in trust for folk in a vulnerable position. Consult a solicitor.

@flourella

Receiving that amount of money directly would cause him to lose all of his means-tested benefits (for example, UC, income-related ESA, housing benefit, council tax reduction). He would be able to reapply for them when the balance falls below £16,000, and have them fully reinstated when below £6,000 (assuming he still meets other criteria).

Your mum could leave his share in a trust, to be managed by trustees. He wouldn't actually be considered to be in possession of the money so his benefits would be unaffected. This needs to be written into the will; it can't be changed after your mother has died. Look at the gov.uk page, on trusts for vulnerable people in particular. She should talk to a solicitor.

My mother has done this, my older DB has LD and very vulnerable.

@Member869894

Chloemol I disagree. It's no worse than taking advice from an accountant as how best to minimise tax liability

Good one! It’s true

Do they have a long term partner in a stable relationship? If so the money could be gifted to them instead.