Brother wants his inheritance paid into his kids accounts

[renouncefifty]

My Father passed at the end of 2020 and I was named executor in the will. I was granted probate recently and have began the process of selling his property. My bother and I are joint beneficiaries in the will.

My brother is on benefits and has been for many years, he and his partner have some disabilities. My Brother has asked me to pay his share into his sons bank accounts. - I think this is his attempt to not lose his benefits.

I don't have to make any payments as yet as the flat my father owned has just gone on the market, but to be honest I'm worried that my brother is dragging me into something dodgy. I don't claim benefits and never have, the last thing I want is to commit fraud not to mention the fact if he isn't entitled due to an inheritance he really shouldn't be on benefits.

Where do I stand legally when it comes to making the payment to him once everything is wrapped up ? If I was to send the money to his kids accounts isn't that going against the will ?

Thank you in advance for any replies x

I don't think you could put the money into his kids' accounts even if you wanted to.
They are not the beneficiaries.
The money will have to go into an account in his name.
He could always say he doesn't want the money though.

I imagine the money has to be seen to be going to the person named in the will so I'd say you cant send it anywhere else

Ill not be popular saying this but I actually feel sorry for him.
I think the system is crap and an inheritance that would allow people like your db to improve their lives ends up eaten by day-to-day living which I'm sure is not what the giver would have wanted.

Can't you do a Deed of Variation? No idea if that would be seen as depriving oneself of assets.

Very dodgy.
I wouldn't do anything that could result in me being in trouble legally and it's not fair of him to ask you to help him commit benefit fraud.

@MrsTerryPratchett

Can't you do a Deed of Variation? No idea if that would be seen as depriving oneself of assets.

Yes if he actually wants his kids to have the money.

However I suspect the OP believes he is putting it in the kids accounts but for his own benefit in an attempt to defraud the benefits he receives which obviously she can't be a party to as she will leave herself open to personal liability.

Can you pay it in their accounts if they are not beneficiaries or is that up to him to pay out from his account.

I think it has to go into an account in his name - but but check this. I certainly had issues when the person had misnamed an organisation because the solicitor said it could not be changed

The children are already beneficiaries for much smaller sums.

However I suspect the OP believes he is putting it in the kids accounts but for his own benefit in an attempt to defraud the benefits he receives which obviously she can't be a party to as she will leave herself open to personal liability.

In which case, yes, doggy as anything.

At least she could offer the Deed of Variation and then he'd have to say, "no, I want to commit benefit fraud" and she could refuse. I would definitely refuse.

It might be too late now, but if not a Deed of Variation could be done to make his kids beneficiaries.

No idea if this would be looked in as deprivation of assets or something.

And if the money is in the kids accounts it does belong to them.

Doggy? Dodgy obviously.

@MrsTerryPratchett

Can't you do a Deed of Variation? No idea if that would be seen as depriving oneself of assets.

That’s what I was thinking? Get a deed of variation done so his kids are beneficiaries instead?? I’m not a lawyer tho....

I think you need to pay for proper legal advise here. Maybe your brother should pay for it!

Assuming the amount is over 16k?

Your brother could not access the funds if they are in an account with someone else’s babe. He’d have to get them to transfer the money back out to him which rather defeats the object.

If you do a deed of variation the money would be held in trust (assuming the kids are minors) and could only be distributed to the kids under the terms of the trust (usually capital at 18 and income to be agreed by the trustees). Again, doesn’t achieve his objective.

How much are we talking here? If the money is enough to buy a house he is going to live in then he will not lose entitlement to benefits as the house does not count as capital. He would have to close his claim, but the property and then claim again based on low income.

But If not a sum that could buy a house but over £16k then yes he needs to declare it and will lose his benefits. And why should he not? The benefits system is there as a safety net not a lifestyle choice

I think this would be fraud however it is done. Please don't do it and take legal advice.

I think you'll need legal advice. Slightly different but a family member had a significant medical negligence payout and had a life limiting illness and cognitive impairment. We set up a trust with two siblings as Trustees and she was the beneficiary. The reason was that she simply didn't have the capacity to manage the money but it did mean that her benefits were not impacted.

A deed of variation will still be deemed deliberate deprivation as far as means-tested benefits go. It's the only legitimate way the inheritance can be paid directly to his kids but it's still not going to work if he's trying to avoid losing his benefits.

And you as executor OP must comply with both the terms of the will (unless varied by deed) and the law neither of which would be achieved by paying into an account other than that of your brother

If he receives a means tested benefit, this would be potentially reduced by any savings between £6k and £16k. His benefit would be stopped completely with savings above £16k. It’s really not worth the risk of him being prosecuted by DWP - they will get to find out! No prizes for guessing where I work 😆

Your brother could do a deed of variation BUT DWP would see it as a deprivation of assets and deem that he'd had the money and act accordingly. So he wouldn't get any benefit from doing this.

@weekend2021

If he receives a means tested benefit, this would be potentially reduced by any savings between £6k and £16k. His benefit would be stopped completely with savings above £16k. It’s really not worth the risk of him being prosecuted by DWP - they will get to find out! No prizes for guessing where I work 😆

Yes as I suspected. It's considerably over 16k.

A deed of variation will still be seen as deprivation of assets as will paying the money straight into the kids accounts. He will be classed as still having the money. DWP can and do search through wills to see where benefit claimants have or should have received an inheritance. As executor, you have to distribute the funds as intended and your brother needs to inform the DWP if it takes him over the allowed amount in savings (you're allowed upto 16000 with benefits tapered between 6000 and 16000) if he and his partner are on PIP then this is not means tested and will not be affected, the same with tax credits and contribution based ESA and JSA. UC and income based ESA or JSA will be affected.

It is benefit fraud is it not? Benefits are for people who need them - given this windfall he doesn't need them currently so shouldn't be claiming them. Seems fairly simple to me.