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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:
qotsa · 31/08/2024 15:28

@anonhop and @Mrsttcno1 👈🏼 These are correct. It's so nice that this decision has been made for your DD with no will. You really need to just carry on as best you can as if it was never left for her. It won't be able to benefit you in the way the adults dealing with the estate are hoping but it will help DD with a deposit for a house or something when she turns 18. I can imagine it's going to be so tough being £300pm worse off especially at the moment. 😔 sorry for yours and your DDs situation but try and think of how good this will be for DD in a few years.

plasticmack · 31/08/2024 15:28

@moneyisnotfunny that's what it looks like to me too.

Bromptotoo · 31/08/2024 15:28

I think the OP is in a very difficult position.

£30k for a minor under the intestacy rules would normally be held until they are 18. In reality it's like a bequest; it isn't 'meant' to replace what the Father was paying in (disregarded) maintenance.

Taking money from that as a regular payment would probably be seen by UC as income even though it is actually capital.
.

plasticmack · 31/08/2024 15:29

plasticmack · 31/08/2024 15:28

@moneyisnotfunny that's what it looks like to me too.

@moneyisnotfunny sorry, that was meant for @NoWordForFluffy

MattDamon · 31/08/2024 15:29

OP - the only good advice in this thread is to speak to a lawyer. If you can't afford one, contact the CAB.

NoWordForFluffy · 31/08/2024 15:30

Bromptotoo · 31/08/2024 15:28

I think the OP is in a very difficult position.

£30k for a minor under the intestacy rules would normally be held until they are 18. In reality it's like a bequest; it isn't 'meant' to replace what the Father was paying in (disregarded) maintenance.

Taking money from that as a regular payment would probably be seen by UC as income even though it is actually capital.
.

But it's not even £30k, it's more, if the family do what they're meant to.

The OP needs legal advice sharpish.

UpTheMagicFarawayTree · 31/08/2024 15:31

As there is no will and he isn't married his total assets must be divided by his children equally. As your dd is a minor this will likely be held in trust until she is 18. His other children don't get to decide who gets what and less/more etc. If the estate is worth more then your dd is entitled to more. If, once everything is divided into 3, the others choose to gift you 30k to cover the maintenance you won't get then they can do that, but I think it would probably need to be yours rather than hers as you won't be able to spend her money.

Bromptotoo · 31/08/2024 15:32

NoWordForFluffy · 31/08/2024 15:21

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

Show quote history

Good point. I guess a court could consent to a re-jig but in a £90k estate that's going to be way to costly.

We also know know that it looks like a 'simple' intestacy with the net estate split 3 ways.

OP's problem is that her household has lost £300/month in income. I'm not sure there's an easy answer to that.

NavyDeer · 31/08/2024 15:32

I can only reiterate that you and the family need good legal advice.
Sorry for your loss @moneyisnotfunny

Zerro · 31/08/2024 15:33

You need legal advice not guess work from MNers who have not even read the thread.
A solicitor should give you a one off session for a reasonable amount. You may think the relatives are being generous but in fact it's not up to them to decide and your DD may be entitled to more.
Usually a trust is set up for a minor and the condition may or may not allow you to use some of the money for her.

DreadPirateRobots · 31/08/2024 15:33

They cannot just decide that your DD gets £30k "to replace maintenance". A third of her DF's estate legally belongs to her under intestacy rules. His family categorically cannot just decide to dole it out as they see fit.

Your DD cannot represent her own interests, so you have to. You need to find out who is executor(s), and you need to get a solicitor up their arses to represent the interests of your DD. Then, yes, when she gets the money it will be held in trust for her. It can't be your maintenance, and it would be both legally and ethically wrong for them to bribe you to overlook their maladministration of the estate by saying they'll pay money to you for "maintenance".

CasaBianca · 31/08/2024 15:33

But if you use the monthly money to pay for ex for school shoes, yes it is 100% used for your DD, but at the same time without this maintenance you would have paid for it from your money, so really it is you who are benefitting IYSWIM?
Leaving the capital in her name until she turns 18 should be possible though.

backslashruby · 31/08/2024 15:36

DreadPirateRobots · 31/08/2024 15:33

They cannot just decide that your DD gets £30k "to replace maintenance". A third of her DF's estate legally belongs to her under intestacy rules. His family categorically cannot just decide to dole it out as they see fit.

Your DD cannot represent her own interests, so you have to. You need to find out who is executor(s), and you need to get a solicitor up their arses to represent the interests of your DD. Then, yes, when she gets the money it will be held in trust for her. It can't be your maintenance, and it would be both legally and ethically wrong for them to bribe you to overlook their maladministration of the estate by saying they'll pay money to you for "maintenance".

This gets it spot on. Time to lawyer up OP.

UpTheMagicFarawayTree · 31/08/2024 15:37

Bromptotoo · 31/08/2024 15:32

Good point. I guess a court could consent to a re-jig but in a £90k estate that's going to be way to costly.

We also know know that it looks like a 'simple' intestacy with the net estate split 3 ways.

OP's problem is that her household has lost £300/month in income. I'm not sure there's an easy answer to that.

Show quote history

But op said 1/3 of the total estate would be more than 30k each, which means her dd won't receive what's she's entitled to under the current plans.

saraclara · 31/08/2024 15:37

They cannot just decide that your DD gets £30k "to replace maintenance". A third of her DF's estate legally belongs to her under intestacy rules. His family categorically cannot just decide to dole it out as they see fit.

That. The intestacy rules HAVE to be followed, or they're breaking the law. Have they taken legal advice? If they're trying to avoid doing so and they're home owners, remind them that their home insurance probably includes a free legal advice line.

Dibblydoodahdah · 31/08/2024 15:38

You need to be very careful OP that they are not making this “offer” to swindle your DD out of her full entitlement to a third of the estate. Whatever she does get should be held in trust for her until she is 18. This doesn’t mean that it cannot be used for her benefit in the meantime. Monies in trust can often be used for the maintenance and education of a minor beneficiary. Anything that is left in than released to her once she reaches 18.

Original poster
moneyisnotfunny · 31/08/2024 15:38

Oh this is so tricky. I hadn't spoke to my ex since Dd was born and he wasn't involved in her life at his own request.
I don't want any money from him and hadn't even thought about Dd being entitled to anything. It didn't occur to me. She was unwanted by him and there's no chance he would have named her in a will even if there was one. All I know at the moment is that the ex-wife and adult dc want me to have the maintenance for her for the next ten years. Nothing else has been mentioned
There's debts to come out of the sale of the house and half of the house goes to the ex-wife because it was jointly owned. No mortgage.

OP posts:
UpTheMagicFarawayTree · 31/08/2024 15:38

Dibblydoodahdah · 31/08/2024 15:38

You need to be very careful OP that they are not making this “offer” to swindle your DD out of her full entitlement to a third of the estate. Whatever she does get should be held in trust for her until she is 18. This doesn’t mean that it cannot be used for her benefit in the meantime. Monies in trust can often be used for the maintenance and education of a minor beneficiary. Anything that is left in than released to her once she reaches 18.

Yes, sadly that's what I would be concerned about.

Proseccoh · 31/08/2024 15:40

If the house was owned jointly with ex wife, as in joint tennants, then I believe that automatically passes to her fully on his death...

Bromptotoo · 31/08/2024 15:41

This gets more complex by degrees.

I assume the house was held as tenants in common so half going to the ex is probably right.

DreadPirateRobots · 31/08/2024 15:41

moneyisnotfunny · 31/08/2024 15:38

Oh this is so tricky. I hadn't spoke to my ex since Dd was born and he wasn't involved in her life at his own request.
I don't want any money from him and hadn't even thought about Dd being entitled to anything. It didn't occur to me. She was unwanted by him and there's no chance he would have named her in a will even if there was one. All I know at the moment is that the ex-wife and adult dc want me to have the maintenance for her for the next ten years. Nothing else has been mentioned
There's debts to come out of the sale of the house and half of the house goes to the ex-wife because it was jointly owned. No mortgage.

Well it's too bad for him that she was "unwanted", but she is his child, she is his legal heir, and you owe it to her to ensure she gets what legally belongs to her. Please, for the love of God and your DD, don't let them palm you off with this "replacement maintenance". Your DD would have grounds to take you to court if you did.

Proseccoh · 31/08/2024 15:42

unless they were tenants in common, which may have been 50% each or any other percentage. But if it was just "joint tenants" then the house ownership
passes to her

NoWordForFluffy · 31/08/2024 15:42

moneyisnotfunny · 31/08/2024 15:38

Oh this is so tricky. I hadn't spoke to my ex since Dd was born and he wasn't involved in her life at his own request.
I don't want any money from him and hadn't even thought about Dd being entitled to anything. It didn't occur to me. She was unwanted by him and there's no chance he would have named her in a will even if there was one. All I know at the moment is that the ex-wife and adult dc want me to have the maintenance for her for the next ten years. Nothing else has been mentioned
There's debts to come out of the sale of the house and half of the house goes to the ex-wife because it was jointly owned. No mortgage.

Even more complex, it also depends how the house was owned (joint tenants or tenants in common) as to what happens with the house.

Bromptotoo · 31/08/2024 15:42

Proseccoh · 31/08/2024 15:40

If the house was owned jointly with ex wife, as in joint tennants, then I believe that automatically passes to her fully on his death...

That's the flip side of my point.

Hopefully, even if it was owned as joint tenants during the marriage, the joint tenancy should have been severed when they split up.

Ophy83 · 31/08/2024 15:42

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.

What is the value of his estate? If he didn't have a will, his estate would (I think) be divided equally amongst his next of kin, ie his children. As a minor dependent she may have a greater entitlement. Make sure the 30k is an equal share or more (if they say they want to give her this). It shouldn't be less.