Inheritance protected so that benefits can still be claimed

[JustACountryMusicGirlInCowboyBoots]

Can inheritance of around £200,000 be somehow protected so that benefits can still be claimed if provision is made in a will to hold that inheritance in some kind of trust? The claimant will never work for various reasons.

But they can live off and enjoy the £200k once received. If they need to use a chunk to live off, but also pay out for treats and enjoyment, they can do so. Then once the money has gone, they can go back on benefits?

People on benefits due to being disabled receive means tested and non means tested benefits. They shouldn’t lose either because of an inheritance. Neither should a carer. For all the reasons in my previous comments.

If a trust can avoid them losing any benefits then it is absolutely the right thing to do. It isn’t dubious or fraud or anything nefarious. It’s ensuring they don’t lose their only income, which often leaves them living in poverty anyway, so they can have a safety net and a little bit extra money to bring them out of poverty.

Carers is means tested pip and dla isn't

Yes . The inheritance would be left into a discretionary trust .
Mencap guide here.
https://www.mencap.org.uk/advice-and-support/wills-and-trusts-service?gad=1&gclid=Cj0KCQjwmvSoBhDOARIsAK6aV7hKH0UJXAGKIPAkQ_cKm_3-O4F6TEwjsFYcu_A1kB8sQN2uRXWRZf0aArXoEALw_wcB

Ignore the moralising, knee jerk responses from people who have no idea of what it's like supporting a family member with lifelong dependancy

I think carers should get a lot more than they do. The living wage would be a start! Carers allowance works out as about £2 an hour. It's disgusting. I know that UC is not available with £16k so was interested in how my op works. The man would be much better off using his inheritance though. That's what doesn't make sense to.

So go back into poverty? That’s what you want? Rather than being able to use the inheritance to top up what they have for quite a long time and also be allowed to keep a safety net.

I don't fully understand is this inheritance for the disabled person or carer?

Carer's allowance stops being paid at retirement age.

My aunties house is in a trust, when she dies a specific disability charity can the do what it likes with it, but she has the benefit of it until then. She is paraplegic with learning difficulties, and is partially deaf. She then has the appropriate benefits for day to day life.

People on benefits due to being disabled receive means tested and non means tested benefits. They shouldn’t lose either because of an inheritance. Neither should a carer. For all the reasons in my previous comments.

Yes they should. They should lose the means tested benefits. Because they are means tested. Obviously.

It does, but if there is an underlying entitlement there is an uplift to pension credit.

@JustACountryMusicGirlInCowboyBoots I don't think a carer's inheritance can be left in trust. Disabled Discretionary Trusts require the person to be disabled. Discretionary Trusts need a group of beneficiaries, I think. He would need to see a solicitor because he could be seen as intentionally depriving himself of benefits.

This is a lovely arrangement. It utilises a trust so benefits aren’t affected, but the compromise is that the house is then a legacy for the charity to use - hopefully to help someone else in need.

So the inheritance is for the dad, who has no special needs, not the dependent son.

In that case, surely he would be expected to live of this pot of money , not the benefits.

Is He is asking whether he can ring fence this money to pay for the care for his son? I’ve got no idea. I guess he could gift some to his son, but you need proper legal/benefit experts for this.

I've just been thinking about this myself; I have 2 adult children with disabilities and currently am trying to ensure that they don't become homeless and that they don't fritter away any inheritance. It's NOT about cheating the system , but trying to save the state money by not relying on them for housing or care.

They could put the inheritance towards a house, for example, and still claim benefits, which could leave them much better off. Or as others said, it could be put in a trust - this is what we've done for our family member who needs lifelong care.

But you can surely see that as a country it's not sustainable to have some people gain large inheritances, keep them in the bank, and still claim full benefits while there are so many others in need, on waiting lists etc?

Yes, I would like someone to live off the £200k they have in the bank and not still expect to receive means-tested benefits.

Non-means tested benefits that they receive for reasons unrelated to their financial circumstances - no problem.

On waiting lists for what? There are no waiting lists for benefits. Giving allowances to those with disabilities and those who care for them does not cause anyone else to be left without. But it does leave them in poverty because the amounts given are so small. If an inheritance can be used as a top up then that’s a good thing. I just don’t think we should remove benefits from carers or disabled people once they go over £16k.
Im sure this dad wants to have some of that money set aside to leave to his son, so his son is cared for after he is gone. I think that’s a very legitimate reason to “sit on” some money rather than live off it.

Yes. And btw, we don’t know that this person is living in poverty whilst on benefits. That’s not always the case. As many people on benefits have said on these threads, they can live comfortably off benefits, depending on what lifestyle you have. There are many working people who also live in poverty. Particularly atm with the COL crisis.

Maybe he wants the money held in trust for the child after he’s dead.

200k isn’t a lot when you consider the costs of care without family help.

If it had been made clear in the OP, which it wasn't, then the pps wouldn't have jumped to incorrect conclusions

This in spades. People do not understand either the complexity of providing care to another person or the cost of it when provided professionally.

No idea. I am not sure if they would be able to claim UC with that amount. They might see it as "you have that money so use it".

I'm wondering now after reading what people are saying if he has misunderstood and the money is being held in trust for his adult son and not him. Otherwise it makes no sense. Or maybe the money will get released a set amount at a time.