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

you essentially have to waste it

No you don’t. You have to use it to pay your everyday expenses. Just like anyone else not on benefits does. Where does it say that money received by way of an inheritance most only he sue the on something “improving”? Would you say the same about a lottery win?

I’m staggered by the number of people who appear to believe that regardless of how much money in the bank someone has they can still carry on claiming benefits.

• must only be used

He will no longer need benefits if he has an inheritance, surely? Or is he just wanting extra money. It’s greedy, we are extremely lucky to have the safety net of the benefit system I despise people abusing it

The mindset of somebody who thinks using inherited money to support themselves whilst not actually earning any income themselves is "wasting it" is sort of funny, in a surreal way.

@KilljoysDutch

I feel sorry for him too. I'm disabled on benefits and it's a shitty little amount to live on then obviously Goddess forbid you gain any extra money because they'll snatch it right back. Keeping the disabled in their proper place at the bottom of the food chain.

No matter how much it is? OP says considerably more than the £16k threshold, say it’s £100k or more - do you seriously think he should still get benefits?

I think your brother needs advice OP. I don't think anyone here knows enough.

Opening a joint account with his sons might work.

Deed of variation might work.

You can give away money and not be depriving yourself of assets as far as benefits are concerned, but again you need advice on what counts and what doesn't. And it also depends if the benefits are means-tested, they might not be.

I have come across this with someone who receives benefits. They had a small operation privately and a relative paid the hospital direct to avoid the person temporarily having too much money in their bank account.

They could use the money to help themselves perhaps they need an adapted car or something for the home . It’s not like they can’t spend it at all .

Your brother needs to seek proper legal advice

If there's a considerable amount of money involved I suspect a solicitor will be too, and good luck to him if he expects them to send money other than to where the will says it should go

They'd probably contact HMRC/DWP themselves if they get a sniff of this ...

Maybe you should ask him why, and base your decision on his answer

If DWP find out the DC have more than £6k in the bank then that will affect his entitlement by itself. If they then find out that he strategically made this move (ie purposely bypassed himself as a beneficiary) I think they will most definitely consider this fraud. So, either way he is liable for trouble.

@Jessbow

Maybe you should ask him why, and base your decision on his answer

🙄. It's perfectly obvious why.

You need to pay it directly into your brother's account or you are assisting him in Money Laundering as he is clearly trying to hide it. It is up to him what he does with it beyond that. It also covers you in that you have paid it to him and he can't come back on you later and say you paid it to somebody else.

It is up to him to declare it to the DWP, but you need to pay him.

We had a similar situation with my gran's will. My parents were executors, and the solicitor told them that they had to make the payments directly to the beneficiaries bank accounts. 2 of the GC are slightly disabled and on benefits, and they will have to live off the money before going back onto benefits when it falls under the allowable level.

They were extremely annoyed about that , but why should they keep £50K in the bank and continue to live off benefits? The system is there to help people who have nothing, so if you come into money, it is only right that you spend it on your own living costs.

@andweallsingalong

Good point . You are allowed to use the money for certain things , of course you are . My parents prepaid for a basic funeral. That’s what they wanted to do . And purchased special chairs and beds to help with their disabilities .

If he is honest about it and asks the council will tell them what they could purchase . Like I said perhaps they need an adapted vehicle or something .

You can hold his money in a Trust and be responsible for making payments out to him over time rather than giving him all the money at once.

My SIL has been asked to do this if her auntie and uncle die for her two cousins, who have mental health and drug addiction problems and would just spend all the money at once otherwise.

[quote VanCleefArpels]@celiafforcandle ALL beneficiaries have to agree to a deed of variation, it’s not something that one beneficiary can do in isolation[/quote]
That's totally wrong. You can vary your own inheritance without recourse to the other beneficiaries. Obviously you can't do anything to affect their own entitlements but you can do what you like with yours. If your variation affects the tax position of the estate the executors have to be party to the deed but otherwise, they don't.

Its a terrible deceitful thing to hide that money.
There are genuine people struggling to make ends meet then there are people like your brother want to take take take. Disgusting!
I would tell him no.

Disability benefits aren’t means tested. He inherits the money, and uses it till it runs out and then if he still can’t work he will make a new claim for UC or whatever, but his disability benefits won’t be effected.

@VettiyaIruken

Fuck that. If it's "considerably over £16,000 he's got no bloody business trying to hide it so he can claim benefits he would not be entitled to!

Bit harsher than what I was thinking, but spot on.

DH's father inherited a decent sum from a far flung cousin, his very benefit system aware second wife wanted a deed of variation to go to DS as she had her retirement plans and nothing like a piffling £30k was going to deter her.

She asked us, we said no thanks not legal, DFIL ended up inheriting.

I agree with PP who says pay it into his account and what he does thereafter is up to him, and his problem.

OK,OK Greyhound. I was just trying to think of ways around it, musing. I have no experience of anything like this, or of benefits.

You pay him. If he persuades you to pay into the children account and he takes money from their accounts, he'd also be guilty of theft.

Maybe show him this OP if needs persuading it's a bad idea.

www.chroniclelive.co.uk/news/north-east-news/benefits-cheat-failed-declare-19000-17620803

Its the most similar case I could see, but only £19K. Higher amounts usually go to prison...

@hellywelly3

He will no longer need benefits if he has an inheritance, surely? Or is he just wanting extra money. It’s greedy, we are extremely lucky to have the safety net of the benefit system I despise people abusing it

Totally agree

I think legally it has to go into his account, he could then put it into his sons accounts.

I can see why people do this with smaller amounts but if it a large amount (half the money from a property is quite a bit?) then it seems wrong for him not to use that money to live off? If it was just £2000 which would push him over the £6000 benefit threshold then I would understand it, it’s so much hassle having to stop your benefits and then reapply in a few months when your under the threshold again but I’m guessing this is a lot more money which means he could live without benefits for quite a while. He should have the money put into his account and declare it, he could then spend some, give some to his sons etc..and live off the rest until he’s back under the threshold for benefits.