Inheritance and benefits matter

[nb47]

Hi All

I am retired and in line for a six figure inheritance. Some of my benefits are means tested (for example I receive direct payments from the council for care in my home) and I would like to pass over my entitlement to inherit to my adult children, with of course the permission of the other executors and beneficiaries. This matter is at the earliest stage, the application for probate is about to be made.

Am I correct in thinking that as long as I don't make the mistake of taking the money and then passing it to the children then I am acting lawfully?

Regards and Thanks

NB

Regardless of whether it is possible or not, perhaps have a think about whether it is morally acceptable to do this when you're receiving benefits and care payments. Perhaps use the six figure inheritance to be financially responsible for yourself?

Pretty sure this would be considered deprivation of assets and would lead to you losing your means tested benefits if the council found out.

@loantopil

Regardless of whether it is possible or not, perhaps have a think about whether it is morally acceptable to do this when you're receiving benefits and care payments. Perhaps use the six figure inheritance to be financially responsible for yourself?

Thanks loantopil

I appreciate your feedback. Yes, I certainly give full consideration of the morality, but was looking to understand the legality first.

I don’t think it is possible. If the will states you are a beneficiary, you get the money. It doesn’t matter if you then pass it immediately on to your children. That would be deprivation of assets.

If the person died intestate, similarly, if you are an heir by English/Scottish/Welsh or N. Irish law, you get the money. It again doesn’t matter if you immediately pass it on down. Deprivation of assets.

You will simply be required to use the money to pay for the care you need until you re-qualify for state/council financial help.

you can refuse an inheritance, but have no say in where it goes. Might be worth seeking legal advice to see if it can go in a trust for your children, but you also need to ask if this would still be considered as deprivation of assets.

@NotDavidTennant

Pretty sure this would be considered deprivation of assets and would lead to you losing your means tested benefits if the council found out.

Thanks NotDavidTennant.

Do you know if a solicitor managing an estate would be obliged as a statutory responsibility to check the benefits status of any beneficiary looking to transfer or disclaim an inheritance? (I know for example that solicitors are obliged to check the Insolvency Register before disbursing funds for example).

I am obviously looking for a solicitor who executes his responsibilities under the law, but not a 'jobsworth', if you know what I mean.

My uncle did this but you really need to see a professional that speclist in.

Why don't you want the inheritance.

Yes, I certainly give full consideration of the morality, but was looking to understand the legality first.

And having given full consideration to the morality you think that it's okay if you can do it legally?

With regards to the solicitor checking Probably not, however the issue is that the will itself is a public record and they are checked. It's not a case of you receiving the money that will be a problem It's your entitlement to it under the will.

The executors carry out the wishes in the will, they have no say what you do with it afterwards, and certainly don't need permission from the other beneficiaries.

It is deprivation of assets, so you would be assessed as still having the money even if you gave it away via deed of variation. Obviously those assessing your means for benefits purposes may not know you had given away this inheritance if you withhold the truth from them.

I googled 'Deed of Variation deprivation of assets' - lots of info but no definitive answer. You really do need legal advice.

Yes you can , you will need to make a deed of variation. This effectively re-writes the will to pass your inheritance to someone else. Ignore the posts about the morality. Most deeds of variation are designed to avoid inheritance tax and there are lots of people saving huge sums in tax this may. As always poorer people get morally judged for ensuring they optimise their finances, richer people get applauded

(b)but not a 'jobsworth', if you know what I mean(b)

You mean someone you can try and persuade to let you kids inherit six figures whilst other taxpayers pay for your care needs ??

@witsendeverytime

The executors carry out the wishes in the will, they have no say what you do with it afterwards, and certainly don't need permission from the other beneficiaries.

Actually if you are a beneficiary you can do a deed of variation so what would have come to you goes to someone else. I assume this is what OP is taking about. If so this is perfectly legal and the money would never actually go the OP. (If dh and I inherit from our parents - big if! - we intend to do this so our dcs get it directly).

Whether the council would consider it a deprivation of assets I don't know though.

@anniegun

Yes you can , you will need to make a deed of variation. This effectively re-writes the will to pass your inheritance to someone else. Ignore the posts about the morality. Most deeds of variation are designed to avoid inheritance tax and there are lots of people saving huge sums in tax this may. As always poorer people get morally judged for ensuring they optimise their finances, richer people get applauded

Exactly this.

Quite a number of sources suggest that a deed of variation would be a deprivation of assets e.g. allanjanes.com/-Gifts-to-Beneficiaries-on-Means-Tested-Benefits-a-Rock-and-a-Hard-Place but this discusses a recent case where it was not www.weightmans.com/insights/deeds-of-variation-and-deprivation-of-assets/

I think the PP is right, I would want specific advice before doing this.

You should get specialist benefits advice from a welfare rights adviser before you do anything. Try CAB first

My father did this when he receved an inheritance that would have been swallowed up by care home fees. He declined the inheritance and he was allowed to do that. But he had no say who the money went to, it just went to the next in line. I suppose your solicitor could tell you who that is.

I agree you need specialist, current advice. The government have been closing past used loopholes over the years so just because someone knows someone who did it, doesn’t mean it is still legally possible.

Some useful info here. Do you think it is the case that local authorities and Government departments have ‘eyes’ constantly scouring the wills database with a view to assessing the eligibility of beneficiaries for their inheritances?

Regardless of legality, it's a morally shit thing to do really. Why wouldn't you just accept it and I've off it? I genuine can't gwt my head around why you want to do this?

I don’t understand it either. Why not make your life more comfortable without the worry that future governments could remove your benefits even without the deprivation of assets issue?

Workyticket because maybe the person doesn’t want anything from that inheritance for personal reasons. My father was left money by his estranged father and he said he didn’t want anything from such a horrible man who never bothered to contact him when he was alive. We took legal advice and they couldn’t force my father to accept the inheritance, so he declined it and for benefits purposes he was treated as though he had never been offered it.

What excuse will you give if asked why you dont want the money that the deceased has left you to help. Are you saying you dont need it as you are financially secure or because you would rather ignore the deceased wishes and continue expecting the taxpayer to contribute towards your care and hope that a solicitor works just within the law but has no moral compass.