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Original poster

Inheritance for child when the parent is on benefits

450 replies

moneyisnotfunny · 31/08/2024 14:11

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.

OP posts:
NoWordForFluffy · 31/08/2024 15:12

moneyisnotfunny · 31/08/2024 15:08

Thank you for the kind responses. To those who have been unpleasant at a time when Dd and I are reeling from an untimely and very sudden death then have a word with yourselves.

Everything is in early stages but I know there is no will. He made no provision for any of his children as far as I know. It's a huge mess from what I hear. I will find out who the solicitor is and ask him or her for advice. The adults of the family sorting out the estate have said they want me to have what Dd would have had until she is an adult. I want it to be kept separate for Dd. I didn't expect this and it's come as a big shock that they are looking after DD's interests because her father had nothing to do with her in the past 8 years. He paid maintenance of around £300 a month. If there was no inheritance then I'd have been without it and had to manage as best I could. I'm a full time carer for a family member, I'm not sat on my backside scrounging from the State like some are trying to infer.

I'm sorry it's so difficult for you.

However, with no will, they MUST follow the intestacy rules as to where the estate is distributed to. You can't just vary those rules.

Are you in England? (What I've said applies there.)

www.gov.uk/inherits-someone-dies-without-will

Original poster
moneyisnotfunny · 31/08/2024 15:13

Yes, England. Sorry, I should have stated that.

OP posts:
Bromptotoo · 31/08/2024 15:13

We now know there is no will; the Father died intestate (ie without a will) and, by all accounts, very recently.

Was he married at the date of death?

How many children, both adult and minor, does he have?

fizzymizzy · 31/08/2024 15:15

moneyisnotfunny · 31/08/2024 15:12

Just to be very clear:

There is no will.

Dd is not named in anything.

Ex's family are wanting me to have what would have been the maintenance for Dd until she is 18 because they don't think we should be without it.

I am not a carer for Dd but another family member.

I have no idea how they are going to do this.

Ask them to set it out as maintenance and pay it to you monthly.

Original poster
moneyisnotfunny · 31/08/2024 15:15

@NoWordForFluffy thank you. Following that the estate is divided between his 3 children. He was not married at the time of death and has 2 adult dc and my minor Dd.

OP posts:
Bromptotoo · 31/08/2024 15:15

MounjaroUser · 31/08/2024 14:47

Were you on benefits when he was alive and if so were you receiving that £300 per month?

Child maintenance is ignored in Universal Credit.

If the Father was paying £300/pcm for his daughter and that's stopped becuase he died then OP is £300/pcm down.

It's that straightforward.

Schoolchoicesucks · 31/08/2024 15:18

Mebebecat · 31/08/2024 14:47

Your daughter is inheriting 30k from her late father, and you want her to pay her keep out of it? And she is a child?
Why? What would you have done if she hadn't been left anything?

No, the late father was presumably paying maintenance before he died and arranged for his daughter to inherit in order to continue to (partly) financially contribute to raising her.

Her mother is not charging keep.

anonhop · 31/08/2024 15:18

They have to follow the intestacy rules. If he was married, pretty much everything (unless a large estate) goes to new wife.

If unmarried, split equally between his children.

The beneficiaries of the will (either wife/ his children) can agree to then share out the money however they'd like. However, unless one of them is saying they'd like to set up a trust with their money for your daughter's maintenance, what you want won't be possible I don't think.

The money is either the new wife's or your daughter's (if it's being split between children under intestacy rules). If the new wife's, unless she wants to pay your daughter's maintenance from her share, it belongs to her. If your daughter's money, you can't take £300/ month of it. She can access it at 18.

Would speak to a solicitor but that's my understanding. Hope it helps x

NoWordForFluffy · 31/08/2024 15:18

fizzymizzy · 31/08/2024 15:15

Ask them to set it out as maintenance and pay it to you monthly.

Show quote history

I'm not sure you can do that under the intestacy rules. The OP needs to take legal advice on whether an inheritance via intestacy rules can be used as maintenance or not.

This isn't my area of law, so I can't give a legal opinion, only say that it needs checking, so the daughter doesn't have come back as an adult if it's been spent and shouldn't have been.

SensibleSigma · 31/08/2024 15:18

@Mebebecat she’d have continued to receive maintenance from the child’s father if he hadn’t died. Obviously.

@moneyisnotfunny I’m so pleased his other children are being responsible.

That’s assuming £30k is a third of his estate.

I agree with the trust scenario. It could be accessed and used for specific purposes perhaps- extra activities rather than basic keep. Would that work?

NoWordForFluffy · 31/08/2024 15:20

SensibleSigma · 31/08/2024 15:18

@Mebebecat she’d have continued to receive maintenance from the child’s father if he hadn’t died. Obviously.

@moneyisnotfunny I’m so pleased his other children are being responsible.

That’s assuming £30k is a third of his estate.

I agree with the trust scenario. It could be accessed and used for specific purposes perhaps- extra activities rather than basic keep. Would that work?

You might agree it, but do intestacy laws?

Mrsttcno1 · 31/08/2024 15:20

anonhop · 31/08/2024 15:18

They have to follow the intestacy rules. If he was married, pretty much everything (unless a large estate) goes to new wife.

If unmarried, split equally between his children.

The beneficiaries of the will (either wife/ his children) can agree to then share out the money however they'd like. However, unless one of them is saying they'd like to set up a trust with their money for your daughter's maintenance, what you want won't be possible I don't think.

The money is either the new wife's or your daughter's (if it's being split between children under intestacy rules). If the new wife's, unless she wants to pay your daughter's maintenance from her share, it belongs to her. If your daughter's money, you can't take £300/ month of it. She can access it at 18.

Would speak to a solicitor but that's my understanding. Hope it helps x

This is correct.

You can’t keep it for your daughter & also take out £300 per month from it. Child maintenance ends with the death of the paying parent, so this is either her money and so in trust until she is of age, or it’s your money and will impact your UC.

Bromptotoo · 31/08/2024 15:20

@NoWordForFluffy might it be possible to vary the intestacy situation by way of a Deed of Variation?

My Uncle died suddenly and intestate at 60. The effect was that a significant proportion of his estate would bypass his wife and go to my Mother who was amply well off. A Deed of Variation was done so as to put the situation closer to what it would have been were there a will.

It was a long time ago and the intestacy rules have changed more than once since.

WhereIsMyWhippetAndFlatcap · 31/08/2024 15:20

moneyisnotfunny · 31/08/2024 15:08

Thank you for the kind responses. To those who have been unpleasant at a time when Dd and I are reeling from an untimely and very sudden death then have a word with yourselves.

Everything is in early stages but I know there is no will. He made no provision for any of his children as far as I know. It's a huge mess from what I hear. I will find out who the solicitor is and ask him or her for advice. The adults of the family sorting out the estate have said they want me to have what Dd would have had until she is an adult. I want it to be kept separate for Dd. I didn't expect this and it's come as a big shock that they are looking after DD's interests because her father had nothing to do with her in the past 8 years. He paid maintenance of around £300 a month. If there was no inheritance then I'd have been without it and had to manage as best I could. I'm a full time carer for a family member, I'm not sat on my backside scrounging from the State like some are trying to infer.

If he's died without a will then it's not his family who decides who gets what and they can't dictate what it's to be used for.

I had a great uncle die without a will, he had no children so it got passed to his siblings, one of which was my granddad who had already died, my granddads share then went to his children, one of which was my recently deceased dad, so my Dads share then got passed to his children, much to the fury of my step mum who just assumed she'd get it.

After debts and bills etc. what is left will be split between all his children and your ex's family have no say in how much or what for. You may want to get some legal advice because it may well be that you can't dip into every month for living expenses and it may not be the amount you're expecting.

NoWordForFluffy · 31/08/2024 15:21

Bromptotoo · 31/08/2024 15:20

@NoWordForFluffy might it be possible to vary the intestacy situation by way of a Deed of Variation?

My Uncle died suddenly and intestate at 60. The effect was that a significant proportion of his estate would bypass his wife and go to my Mother who was amply well off. A Deed of Variation was done so as to put the situation closer to what it would have been were there a will.

It was a long time ago and the intestacy rules have changed more than once since.

You can't have a minor agreeing a Deed of Variation, no. They don't have ability to do so.

Another2Cats · 31/08/2024 15:21

You will need to read the will to understand exactly what has been written.

But, when a child is a beneficiary of a will they cannot inherit the gift until they are 18.

So the gift is held on trust. The will may name who the trustee/s will be but if it doesn't then the trustee will generally be the executor of the will.

Unless the will says otherwise, the trustee is entitled to apply any money from the trust at any time for the benefit and maintenance of a child beneficiary.

The trustee can either give it to the child directly or give it you on their behalf.

The money is held on trust for your DD. It does not belong to you so it is not your capital. Any money that the trustee releases from the trust in order to benefit your DD can be given to you to help maintain your DD. This is not your income.

I think the best thing would be to speak to the executor of the will and see if a trustee has been named. If no trustee has been named then the executor will be the trustee.

The trustee is responsible for looking after the money until your DD is 18 and for providing any money from the inheritance to help with your DDs maintenance.

WhereIsMyWhippetAndFlatcap · 31/08/2024 15:21

moneyisnotfunny · 31/08/2024 15:15

@NoWordForFluffy thank you. Following that the estate is divided between his 3 children. He was not married at the time of death and has 2 adult dc and my minor Dd.

It should be split equally between all three children then.

AgileGreenSeal · 31/08/2024 15:23

Mebebecat · 31/08/2024 14:47

Your daughter is inheriting 30k from her late father, and you want her to pay her keep out of it? And she is a child?
Why? What would you have done if she hadn't been left anything?

Presumanly he would have been paying child support

Avidreader12 · 31/08/2024 15:24

If there is no will then his next of kin will have to apply for probate/ letters of administration. If your daughter will recieve a lump sum you can invest it without affecting your benefits as it her money. I would be taking what the family members say with a pinch of salt re giving to you as child maintenance they can’t give it to you it should follow the rules of distributing the estate.

plasticmack · 31/08/2024 15:25

Given what you have said , I would say that your daughter should receive 1/3 of the estate, which will be put in trust until she is 18.
You will not be able to use this money. This has nothing to do with maintenance and any benefits you are receiving now you will continue to do so.

NoWordForFluffy · 31/08/2024 15:25

Another2Cats · 31/08/2024 15:21

You will need to read the will to understand exactly what has been written.

But, when a child is a beneficiary of a will they cannot inherit the gift until they are 18.

So the gift is held on trust. The will may name who the trustee/s will be but if it doesn't then the trustee will generally be the executor of the will.

Unless the will says otherwise, the trustee is entitled to apply any money from the trust at any time for the benefit and maintenance of a child beneficiary.

The trustee can either give it to the child directly or give it you on their behalf.

The money is held on trust for your DD. It does not belong to you so it is not your capital. Any money that the trustee releases from the trust in order to benefit your DD can be given to you to help maintain your DD. This is not your income.

I think the best thing would be to speak to the executor of the will and see if a trustee has been named. If no trustee has been named then the executor will be the trustee.

The trustee is responsible for looking after the money until your DD is 18 and for providing any money from the inheritance to help with your DDs maintenance.

RTFT. There is no will.

Original poster
moneyisnotfunny · 31/08/2024 15:25

Oh dear, this seems very complex.

I'm not sure why people are mentioning a new wife and a will when I've said there is neither. I wasn't married to him and came after his divorce to his now ex-wife. There was no further relationship or dc. The house is afaik the only asset apart from his pension. His ex-wife jointly owned the house.

The £30K is maintenance only not a third of the estate. A third of the estate would be more.

OP posts:
plasticmack · 31/08/2024 15:26

Why is your daughter not entitled to 1/3 of the estate?

NoWordForFluffy · 31/08/2024 15:27

moneyisnotfunny · 31/08/2024 15:25

Oh dear, this seems very complex.

I'm not sure why people are mentioning a new wife and a will when I've said there is neither. I wasn't married to him and came after his divorce to his now ex-wife. There was no further relationship or dc. The house is afaik the only asset apart from his pension. His ex-wife jointly owned the house.

The £30K is maintenance only not a third of the estate. A third of the estate would be more.

They can't do that. She's entitled to 1/3 of the estate. You may need a solicitor. And soon, before they start (wrongly) divvying it out.

NoWordForFluffy · 31/08/2024 15:27

plasticmack · 31/08/2024 15:26

Why is your daughter not entitled to 1/3 of the estate?

She is. The family are mucking this up quite badly!