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

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

Ah. the 'other people do it so it's okay' argument ..🙄

www.bussmurton.co.uk/articles/i-received-inheritance-i-not-wish-keep-can-i/

@Alayalaya

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.

There's absolutely nothing in the op's posts to point to this

It's obviously about preferring to live off the state!

It’s a shit thing to do, the person who died must have wanted you to have the money.
Why should us tax payers pay your benefits when you don’t need to be on them?

I think it is deprivation of assets they can go back way more than 7 years, they consider if the decsion was made in the light of knowing care would or could be needed so if you did this as a fitt and well 25 year old but then needed care when you were 73 it would not be deprivation but if you were already needing care or had a diagnosis of something that you knew would need care then it is. As you are already receiving care you know about it, so it is almost certainly deprivation and if they then withsdraw your mony on the basis that you could have had it you are really going to be up the crrek without the proverbial paddle. a six figure sum should get you decent care well invested it should provide some income for a while > I would be very very careful

Why don't you want the inheritance.

It's clear from the updates that OP doesn't want to "waste" the money on paying for their own care when the taxpayer can pay for it.

@Sparklfairy

Why don't you want the inheritance.

It's clear from the updates that OP doesn't want to "waste" the money on paying for their own care when the taxpayer can pay for it.

No it isn't. That's your own interpretation. The OP hasn't given any reason for wanting to pass on the inheritance.

I guess we wont know why op doesnt want the inheritance unless they tell us which they won't

That’s just plain greedy. A six figure sum is a huge amount of money. You could easily be independent.

Stop bludging off the state - you don’t need it.

The OP hasn't given any reason for wanting to pass on the inheritance.

Yeah, right 😂😂

With an inheritance as large as a six figure sum - buy a property to live in with it. Afaik from looking at my own circumstances, that isn't counted as deprivation of assets. It may depend on where you live already though (i rent).

If you have continuing health funding to pay for your care it isn't means tested so your income makes no difference.

@Ifailed

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.

This is partially incorrect. You can either disclaim an inheritance (meaning it passes to the other beneficiaries of the Will) or vary it (meaning you decide who gets it). However, both are considered deliberate deprivation of assets and will impact your means tested benefits. Fundamentally why should the taxpayer pay for you when your getting hundreds of thousands of pounds?

@MobyDicksTinyCanoe

If you have continuing health funding to pay for your care it isn't means tested so your income makes no difference.

CHC is only granted to extremely unwell people. You can be dying and not be eligible. I think the OP is more likely to be on UC or similar.

There was an article in I think in Telegraph a few days ago about The Deed of Variation when the beneficiaries can change their inheritance that is written in a Will. It must be done before Probate and within 2 years of death. HMRC has Notes on it apparently but I've not seen them.

*you're

@tara66

There was an article in I think in Telegraph a few days ago about The Deed of Variation when the beneficiaries can change their inheritance that is written in a Will. It must be done before Probate and within 2 years of death. HMRC has Notes on it apparently but I've not seen them.

Yes, it's legally possible but the OP would have to disclose it to the DWP. It's deliberate deprivation of assets. OP you can't have your cake and eat it, and concealing it would be benefit fraud.

@SoupDragon

The OP hasn't given any reason for wanting to pass on the inheritance.

Yeah, right 😂😂

Maybe you can point it out.

Use the money and pay for your own bloody care or get your kids to do it. Adult services are stretched to breaking point.

Morally reprehensible.

And apart from all that you will become part of the looming ( well it’s actually here already ) state care crisis.

What the state will pay for your care is already limited - you may not notice if your care needs are modest yet - but you’d better hope you loose your marbles along with your physical abilities do you don’t actually notice how inadequate the care the date is able to finance for you is …. I’m sure your basic needs will be met , but “ luxuries “ like not being put to bed at 5pm in nappies cos there is no carer till 10am for your “ breakfast call “ when you could decide the time you went to bed or have toilet help at 7am and remain continent …. Or the luxury of actually having the same few careers who know you / how you like you sandwich made etc.

Take the money and buy your ie. Care purely from the selfish point of having care that meets your needs in a nice way not a barely adequate way.

@nb47

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?

Theoretically they wouldn’t know if they didn’t search but they do random checks, you could be reported by someone else or you might need to go into care. At which point you’ll have to pay all of it back.

See a specialist solicitor. As pp have said this is very complex and there are so many loopholes depending on your age, health specific benefits etc every single person posting could be wrong!

@Mia85 those cases are interesting.

It is odd and perhaps reflects structural influences in society that Deeds of Variation to minimise IHT are lawful but the general use of Deeds of Variation when in receipt of some benefits can be treated as a deprivation of assets. I see the anomaly.

I see the direction of government policy seems towards protecting the 'I worked all my life and want my assets to go where I choose rather than pay for the expensive care I receive', perhaps both for electoral reasons and for political 'belief'.

As others have said, morally very wrong, and very poor taste to ask here when so many are struggling financially. Your relative wanted you to have a six-figure sum to make your life more comfortable. Why would you rely on benefits when you don’t have to?

@spudjulia perhaps the 'jobsworth' post gives a clue.

@spudjulia somebody who is doing nothing wrong feels no need to worry about jobsworths or 'eyes' 'scouring' to check for wrongdoing.