Inherited money and benefits

[Playgrind]

My DF died recently and left behind a few thousand but no will or other assets.

Though separated, my DM will therefore inherit £10k or so, and wants to give somebto me and my sister. We all feel this would have been dads wishes even though no will.

However DM is concerned that giving away two thirds of the money would be considered intenional 'deprivation of assets' and cancel her pension credit and housing benefit.

Any legal eagles or benefits experts can advise here please? Or similar experience?

Thanks

You can do a variation of will. I know there’s no willl but whoever is dealing with the estate can do a variation that she will ups sign to divert some of the inheritance to whoever she wants. That way it would never be hers so wouldn’t be counted for benefits I don’t think.

Thanks @BrieAndChilli variation of will, is that a legal term? I know my mum has a solicitor dealing with the estate so hopefully they could do it.

Yes it would be a legal document. DH nan was never divorced from his grandad so when he died the estate went to her by default - she did a variation thing and the estate went to his children and current partner instead.

That was really good of her

Yes a deed of variation is required.

A deed of variation will still be classed as deliberate deprivation of assets. Tell your dm to speak to her solicitors.

The first 10k of capital is disregarded for pension credits anyway, so assuming she has no other capital it shouldn't matter that she has received this money. Even if she does have other capital, it would only reduce her pension credit a bit.

Deed of variation is the instrument but as a PP suggests, it might not be a silver bullet with respect to deprivation of assets so advice should be sought. Have not seen a Deed of variation used in case of intestacy so again advice. Jurisdiction is key as even in the UK, Scotland has different arrangements to England and Wales.