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Thread: Inheriting money whilst in receipt of ESA SG,DLA

  1. #1
    New Member
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    Inheriting money whilst in receipt of ESA SG,DLA

    Hi,

    I'm new here so please bear with me if I step out of the forums rules etc;

    I am currently in receipt of Income related ESA ( support group ) as well as LRMC,LRCC DLA, HB,CTB, and CTC,CB.

    I have been in receipt of these since Oct 2011 following a series of issues resulting in a major depressive disorder yet to be diagnosed but for which I am still on high doses of meds and treatment for.....anyway I digress.

    Sadly my partners mother passed away recently. This means that my partner will receive around 15,000 inheritence ( maybe slightly less but doubtful to be over 16,000).

    I have several questions some of which I am not sure are suitable for this forum so please bear with me.

    Firstly how do we stand with regards to the benefits we are in receipt of once my partner inherits?

    1) Are we still entitled to receive our current benefits?

    2) If they are removed until we fall below 16k ( assuming the inheritance is just over this) would I have to reapply and go through all of the atos thing again ( major cause of stress and severely harmed my mental health last time).

    3) What is seen as deprivation of capital should we/she spend any/all of her inheritance?

    4) Are we allowed to give our 4 kids part of the inheritance as a gift from their grandmother or is this seen as deprivation of capital? ( This is NOT to reduce the amount to retain benefits but as she died intestate she did not manage to make a will to follow her wishes of looking after her grandchildren s future and we would like to uphold her wishes by sharing the inheritance with them)

    Thankyou so much for any advice given.

  2. #2
    New Member
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    Anyone? 107 views but no opinions?

  3. #3
    Senior Member
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    Capital over 16k stops you getting any means tested benefits.

    DLA and Child Benefit and Child Tax Credit are not affected by capital. Child Tax Credit is based on taxable income only.

    Capital under 16k, The first 6k is ignored and you are treated as having 1 a week income for each 250 or part of over 6k.

    Any money gifted to your children is treated as deliberate derivation of capital

  4. #4
    Senior Member
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    Based on a figure of 10,000 you would be deemed to have a weekly income of 40 which would be taken into account as to your benefits.
    As there was no will you cannot prove your MiL wishes as to the grandchildren.

    How many people declare bank savings, hide cash under the mattress or "invest" it in other areas I wouldn't like to say.
    I know that a parent who leaves money after their death would be turning in their grave to know it was going to the government.

  5. #5
    Senior Member
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    Hi, you can ask a solicitor to do a deed of variation (I think that's what it is called) which means the people who would normally inherit can sign to have this change. So if you want the children to benefit by puting say 500 or a 1000 in a trust fund for each child, there is nothing wrong with this at all. Do go and get proper legal advice though.

  6. #6
    davewhit
    Guest
    you are allowed to plan for old age put some money into cash/gilts pension single premium......its allowed just enough to protect benefits

    people do it when income over 100 on CA why lose ca when income 107 15 pension saves you 93

  7. #7
    Senior Member
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    Take advice on the Trust Fund issue. Otherwise as far as 'notional deprivation' goes, you can pay off any debts and pay off the Council Tax bill in full when you get it.
    Replace any household items which really need to be replaced, and clothing, but don't go over the top. Any household bills that you now pay monthly - TV licence, insurances, can be paid off for the year. Otherwise it is impossible to predict how any other spending would be treated, but some other reasonable costs can be allowed such as a modest holiday. Maybe if you haven't been able to take the children away for a long time etc.
    Just try to spread things out as much as possible.

  8. #8
    Senior Member
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    Being on DLA mobility component could buying a new car be acceptable?
    Likewise if you had a loan or HP for a car or anything come to that would you pay that off?

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