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

It’s fraud, don’t do it. I will at some point have this issue for my own brother. He will lose his benefits as he will have an inheritance. I am executor and trustee of the estate because he isn’t capable of looking after his own money. It’s right however, that he won’t then get benefits, because why should the tax-payer pay for someone with the money to support themselves?

As executor you need to do what the will says. Pay the money to him, then if he puts it in his kids’ names that’s up to him. Pretty wrong though really but at least you couldn’t be held responsible.

@WeBuiltThisBuffetOnSausageRoll so the claimant who simply can’t be arsed to get a qualification/van/driving licence/tools should also not lose the benefits upon receipt of an inheritance?

Don’t be ridiculous. The benefits system is there as a safety net. Money in the bank means that safety net is not required, even if it’s for a short period.

@WeBuiltThisBuffetOnSausageRoll

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.

I think a lot of it depends on your reasons for not earning income yourself. If you've simply decided that work isn't for you and you want to live off the taxpayer whilst having a big amount of savings to dip into for flash cars and exotic holidays, then I agree with you.

However, if you've ended up temporarily unemployed through no fault or planning of your own and you want to use a reasonable inheritance to help yourself back up - paying for training courses, even taking driving lessons, paying for a (modest) vehicle or tools to enable you to get back into employment again. Maybe you could use it to move to an area where you'd be much more able to find employment.

But, you're told "No, you are now a person on benefits, so you must not be enabled to use your inheritance wisely to improve your lot (including getting yourself off benefits) like anybody else receiving an inheritance (or indeed yourself receiving the same inheritance at a different time) would be able to. You must use the money to continue to live a minimal existence and then, when it's finally gone (or very much reduced), you can go back on to your minimal benefits lifestyle. On no account must you be allowed to help yourself (or the taxpayer) to improve your life and get off benefits."

Yes, I personally would consider that being forced to waste an opportunity that could otherwise help you and society in general.

But the person on benefits could still use the inheritance to do all those things. When the inheritance is gone they can then claim benefits again, but hopefully they will have improved their life in the meantime. Why should the taxpayer pay for that?

If it's enough to buy a house or vehicle he will be able to do that, even if the buying process takes a few months. Definitely get some advice.

@Babyroobs

The DWP will know that he has been left money. I think solicitors have to report it. He is trying to act fraudulently. he should support himself now he has the means to do so. They would not lose disability benefits as they are non means teated.

I don’t think they do. I administered my parents’ wills myself so there was no solicitor. There were no checks whatsoever at any stage. Everything was left to me and I simply closed accounts and moved their contents into mine. Nobody would have known if I was a benefit claimant.

I agree that it would be appalling to claim benefits with a six figure inheritance.

Mother in law had hers payed into her sisters. she then gets in touch with sister if she needs to use it for anything.. I feel sorry for your brother why should the inheritance go into day to day living. obviously it depends on the situation. Mother in law hasn't got a pension so hers if for retirement

His account or his kid’s accounts is irrelevant as the DSS would be able to see any of these balances if they wanted to.

@dontcare85

Mother in law had hers payed into her sisters. she then gets in touch with sister if she needs to use it for anything.. I feel sorry for your brother why should the inheritance go into day to day living. obviously it depends on the situation. Mother in law hasn't got a pension so hers if for retirement

And this will surely cause problems for her sister should she need to claim benefits ?

Fair enough if it was a 16k inheritance that was going to temporarily stop his benefits while he spent the 16k. However OP said it is a lot more. Therefore DB needs to live off the money. He can claim again once the money has run out. There's no limit on how quickly it runs out. You could spend it all on training, new vehicle etc in a month and claim benefits again.

Consult a Solicitor ( for the term of the Deed of Variation) /Financial Advisor ( to invest the money). A Deed of Variation is worth looking into if he genuinely doesn't want the money.

His children can't directly benefit until they are 18 but I believe a Flexible Trust might be able to be set up for them and the Trustees ( usually at least 2 ) could release monies to them according to the terms of this Deed. A family trust eg could continue for 100 years and benefit his grandchildren too.

I think you have upto 2 years after the death to make one. His benefits may not be affected if he has a disability. and he doesn't receive any monies himself.

The Executors would then allocate the money to the Trust according to the terms of the Deed of Variation. There should be no risk to the Executors if proper legal advice is taken.

@HercwasanEnemyofEducation

Fair enough if it was a 16k inheritance that was going to temporarily stop his benefits while he spent the 16k. However OP said it is a lot more. Therefore DB needs to live off the money. He can claim again once the money has run out. There's no limit on how quickly it runs out. You could spend it all on training, new vehicle etc in a month and claim benefits again.

Spending unnecessarily to claim benefits again could be seen as deprivation of capital. Paying off debts, buying a reasonable car etc , replacing furniture etc are ok. Spending on a round the world cruise or brand new car to reduce capital to then claim benefits again would not be ok. Why can't people just fund themselves for a while without trying to pull off a fraud, some people are so greedy - you see it all the time, well I do in my job - second homes abroad that people try to keep quiet, claiming as single when they have a partner. It's just like people are out to get what they can at any cost. The money to pay for it all has to come from somewhere.

Gosh, no. You could be done for fraud. You have to follow to the letter, that's what an executor is for.
What he does with it then is up to him.
Don't risk it, see if there's a legal way around it. I feel sorry for him, it can't be easy for them.

Why is everyone advising OP to see a lawyer? Her position as executrix of the will is clear. She is legally obliged to follow her father's wishes. She has no wriggle room.

Because she doesn't know that until she sees a lawyer! That's usually better than taking assurances from unqualified strangers. I (being an unqualified stranger) think she does have wriggle room.

@Babyroobs her sister is very rich so would never happen fortunately.

If your brother has disabilities and gets PIP he may be able to have a disabled persons trust... the money could go into the trust and his benefits would not be affected. Needs proper advice from solicitor.

I feel sorry for your brother why should the inheritance go into day to day to day living
There it is again. The absolutely certainly that benefits are yours by right and any other income coming your way should be spent on anything other than actually paying your own way.
It's pitiful.

www.todayswillsandprobate.co.uk/main-news/benefit-cheat-hides-inheritance-continue-claiming-state-handouts/

@dementedpixie
You used to be able to sign across those to lines on cheques which in effect annulled them.
But I am going back a bit because you also used to be able to pay in dubloons...

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

Have you actually asked him why he wants the payments this way rather than second guessing?

If he wants to surrender some of the money to his children to provide for them knowing he may not be able to then a Deed of Variation might work. Especially if either of you discussed the childrens' future with your father and your father indicated a desire to help the children beyond small token amounts. That money should then go into trust for the children and shouldn't be available to him (which will be fine if it is genuinely intended to provide for them).

However he should get legal advice on this as it may or may not be valid depending on circumstances and the understanding of your father's wishes outside the letter of the will.

He can do a deed of variation to have the money paid to the children but it has to be done within a certain time period. My mum did this with my Nanna's money - it went to me and my brother instead of her.

It doesn’t matter WHY he wants it paid into his children’s accounts ... you legally can’t. You have to execute the will as stated - he is the beneficiary, therefore it must go to him. End of.

@WeBuiltThisBuffetOnSausageRoll you can have £16000 that would buy a car or tools for work
So you think if someone gets £50000 they should keep it and still claim state benefits
So can I keep my tax money as that would allow me to considerably improve my life
As well
Once back down to £16000 they can claim again

My brother and I are both over the age of 18 if this makes a difference

People can receive inheritance without affecting benefits if a discretionary trust is set up whilst the person whose estate it is is still alive. It’s a shame this was not done.

Your brother may actually be worrying unnecessarily. If they receive child tax credits then only interest over £300 a year needs to be declared. They may be on contributions based ESA which would not be affected. It all depends what benefits they are on really but the likelihood is they may be able to continue claiming most of what they get.