Inheritance for child when the parent is on benefits

[moneyisnotfunny]

Nc and some details changed for this. My young daughter is going to inherit around £30K from her late father once the estate is sorted out through probate. I am a single parent carer on benefits and am concerned about how to handle this situation. The money will be very much my daughter's and I have been told that it is to cover her maintenance up to when she reaches adulthood. Because it is maintenance, there needs to be a way of releasing the maintenance amount per month to me for her every day living expenses. If the full amount went into my account then my benefits would stop and the money would run out long before Dd hits 18 and we would because off as a family. I hope that makes sense.
How can I keep her money safe and in her name but released monthly to help for her day to day things? Is this possible? It's around £300 a month that she got and this is the rate it would continue at afaik. I will be asking for it to be paid into an account in her name. Multiple Junior ISAs? Premium Bonds? She is 8 and any account will have to be overseen by me as her only parent/guardian.
TIA.

@Silvers11 ah, yes, true, sorry! It seems an age since I asked that question!

Having reread the information I can see that the middle Dd would be eligible for the dependents pensions until she reaches 24 in the new year. So around 6.5 months of pension would be due to her. It says 18-23 and in full time education. She's in her final year of uni and is 23. I doubt she will make a claim but I'd expect the pension service to contact her. Although I expect her mum (the ex-wife) will be aware of the situation and might have told her to complete the forms.

It's looking more and more like a solicitor is going to be needed here. Would my Dd qualify for legal aid on this? In terms of the estate/house not the pension.

I assume this is in regard to the estate rather than the pension provider?
In terms of legal aid, I very much doubt it. You may be able to get a solicitor who will defer fees until settlement? That's probably the only option

I do hope you don't have to go down the solicitor route @moneyisnotfunny as it will cost and I'm not sure what the position for legal aid.

As far as intestacy rules are concerned, if your ex died without a current wife or civil partner then your daughter will be entitled to an equal share of the 'free' estate with his other children once all debts have been paid. She will also be due a dependants pension from the civil service pension

The 'children' will include the adult offspring. The life insurance and the Death in Service lumps sum from his pension are unlikely to form part of the Estate at all depending on how they were written. It's most likely though that they were written as trusts and whoever was nominated to receive those payments were named as the beneficiaries and they will not form part of the Estate

The ex wife may, or may not inherit the other half of the house, depending on how it was jointly owned and again, if she automatically inherits it, it does not form part if his estate at all

It may be that the offer of £30k is a very fair one, but nobody can say that until someone is appointed to deal with the estate, and the affairs have all been wound up with debts paid first - including the funeral costs

Hope that helps

Do you know yet what the situation is with the house?

Thank you. The ex wife is saying she owns the house outright now. That is being checked though.
The life insurance has gone or is going to another family member who is not one of my ex's dc or his ex-wife. I don't know anything about that in any detail except that the family might keep it all or might give some/most to the middle child.
The pension is being dealt with separately.
This is making me very anxious. The potential fall out between the siblings is huge and the ex wife and middle child are the ones who are in control. I don't think the ex wife will care about my Dd or the eldest as long as her Dd is ok. The ex wife has got a solicitor and her attitude appears rather I'm all right Jack.

Ultimately it kind of doesn't matter if there's a fall out of the ex wife with any of the offspring because they are unlikely to have any future relationship with an ex of their now deceased father.
As a PP said, the pension and life insurance are not part of the estate, in general. So you are doing the right thing re the dependents pension and that will come to your DD who is entitled to it.
You said previously there's a solicitor handling the estate, this is good because they have to do things properly or they'd get struck off. So make sure that the solicitor handling the estate is aware of your DD (proactively send copy of the birth cert) and they will distribute it accordingly if he has died intestate. The house may or may not be included depending on how it was held with the exW. You can actually check this yourself on land registry if you know the address. You've indicated beyond the house there may be little else of value so I'd not recommend getting another solicitor of your own involved at this stage unless it looks like they are pulling a fast one wrt to the house. If the solicitor handling the estate knows DD exists they should ensure she gets the appropriate division of assets. I think the 30k or whatever they said at the beginning is not to be counted upon as in general people feel a lot less inclined to hand out money once they've got it, I'm afraid to say

Am I right in thinking that even if the house is the ex-wife's although they'd to be confirmed, that the personal effects inside belong to the estate and therefore the three children? Can the ex do what she likes in terms of say decorating, maintenance, changing locks etc. could she live in the property if she so wished or allow someone else to live there? Probate is yet to be started. I thought it had but not yet.

If the house now belongs wholly to the ex wife and it came to her under the terms of how they purchased it jointly, she can do whatever she likes with it - but not until it is confirmed to be hers.

That doesn't include the personal effects, but the Executors have to value the contents and then sell any valuables to ensure the Estate realises it's full value for IHT etc.

It could be months and months before someone is appointed by the court, to be allowed to settle the Estate, seeing as he died intestate

It is likely if it was a joint tenancy (which is normal) then yes she becomes the sole owner and can do what she wants with the proerty

the stuff in there is difference

The person who will be administrating the estate (the eldest sibling) can't get in because the locks have been changed and the ex has let the house to her cousin. All my ex's belongings are still in the house. There's nothing of any great value except some tech items but there's lots of sentimental items that the children would like.

Think eldest sibling needs to speak to a lawyer then maybe. Although you could try to ask for some sentimental items for your daughter. From the ex?

People can be awful following a death. The person expecting to deal with the estate really needs to see a lawyer to protect the personal effects. Been there, done that and got the t-shirt - and it was my sister helping herself to things, while I was executor. We don't speak now, sadly. It was a nightmare

@Silvers11 I'm sorry it happened to you. It's become an utter nightmare because the ex wife has completely taken over everything, made some nasty comments, and is acting as though she is the sole beneficiary of everything. Having the locks changed seemed particularly unpleasant and unnecessary and moving someone in when all his personal effects are there is beyond shitty. There's an attic and basement full to the brim with items he'd collected over the years and general life stuff. None of it particularly valuable. It seems so disrespectful of her towards both my ex and the children.

I am still impatiently waiting regarding the pension.
The eldest has instructed a solicitor who is acting for us both on the matter of the house, the ownership of which is still debatable. The land registry information showed that things weren't done correctly at the time of purchase and that Dd might have a claim there. The solicitor is hopefully going to get this sorted and we will know the facts sooner or later. Meanwhile the house is inaccessible and full of possessions that belong to the dc, not the exW or her tenant.

If there is no will your DD may be the person to inherit if he has acknowledged he is her father. Did he have a current wife or other children? There are specific rules for where the money goes if someone dies without a will. The relatives may not be doing you any favours in the way they decide to distribute the money, you need to discuss the rules of intestacy with a professional.

If the other relatives do inherit legally the money would be a gift from whoever does inherit it.

Long thread

Hello, I just thought I'd update as it's been a while now and things have progressed.
Dd is getting her dad's pension which is around £700 a month for her. She will also get a lump sum from the death benefit. I have spoken to a financial advisor and feel much clearer. The eldest is administering the estate and it will be paid to them to divide up as they see fit which is a third each. So £30K for Dd as originally anticipated.
I've not had the first payment yet but that should be within the next couple of weeks I hope.
Thank you to everyone who gave advice.

Glad to see this has been resolved for you and your daughter. Good outcome.

@moneyisnotfunny i am please it all seems to have be sorted fairly and your DD is getting the pension.

Wonderful i am so glad you have some much needed financial support for DD. Well done

I think I still can't believe it and won't do until it's in the bank account. It's going to make such a difference to Dd. It's over twice what the maintenance was. It feels wrong to be happy about it considering the circumstances though. It's a weird situation.

That's great news

I've been following this and am so pleased it is getting to a sensible outcome.
Presumably you will use the pension in lieu of maintenance, towards the monthly costs of bringing up your DD.
Please make sure you are not worse off yourself by not making use of this.
The lump sum can be invested for her future.

Did everything work out?