25 Feb 2015

A question about : Declaring an inheritance while on benefits

Earlier this year my younger sister and boyfriend coerced my mentally ill and dying of cancer mother to write her will and they were oddly named as two of the beneficiaries and they would be receiving half of my mother's estate. Sounds a bit like sour grapes on my part but going into details here would take up far too much space and distract from my main points.
Suffice to say these two are not exactly favored by me.
Both of them will be receiving over fifty five thousand pound each,. Both are claiming Housing , council tax and some kind of personal income support and my sister who has been claiming child benefit for years when her child doesn't even live with her is clearly defrauding the state.

I understand if one is on benefits yo can have up to Ј16,000 in savings. If you are a beneficiary of a will you have to report your change in circumstances along with the amount to the benefits office. Am I right so far?

If so, I believe it is highly unlikely that they will report their change in circumstance because of the cash they are receiving which is totally illegal and furthermore unfair on those who have a genuine need for benefits.

Both my older sister and I have discussed this in great depth and think we have a moral obligation to report the pair of them or at least advise the benefit fraud section of our suspicions.

One other thing. Does anyone know if a beneficiary of a will can ask the solicitor to transfer the money in to a bank account not in their name as to avoid having to declare the amount if they happen to be on benefits.

Best answers:

  • A beneficiary can refuse to accept their bequest but they can't say where it should end up. If they are due say Ј50k then the solicitor/administrator would be failing in their duty to not ensure it is given to the named person. Blow them up ASAP.
  • With regards to the bank account they will follow the money if she tries to hide it . The easiest way for them is to get the details of the account from the solicitor. Your sister sounds like a charmer I would report her.
  • Thanks for that, these two have hurt my family for so long and disrespected both my parents who are sadly both dead now. You know, the money is one thing and as far as my older sister and I are concerned just irritating.
    My sister is concerned about possible retribution for reporting them which I guess is understandable as she has kids but then so do I.
    I am still of the opinion that regardless of it being personal, which it most definitely is, these two are criminals and should be dealt with accordingly.
  • Another thought has occurred to me, Maybe I don't have to report them after all. Let me explain, The solicitor has to report the details of the estate and those who benefit from the estate to the Inland Revenue anyway and surely this would make its way back to the benefits department at some point in time which in turn would raise the alarm on these two.
    Mind you that could take some time I guess. Any thoughts on this please?
  • Communication between HMRC (Inland Revenue) and DWP and other agencies is virtually non-existent. You really should report it. Simply search for "Reporting benefit fraud". The first entry is the Government website.
  • You could contest the will if you think it was coerced and your mother didnt have full capacity.
    If you and your other sister are not in a rush for the money or an end to it?
    You should report her anyway if you think there is benefit fraud regardless of the will.
  • OP you are correct it does sound like sour grapes,it riles me when people who know others are/will be committing fraud come on here looking for some justification...either do it or don't...end of
  • The inheritance has to be reported to DWP once it hits their bank account, until then, the money is not theirs and DWP does not want to know.
    However, if you report it during probate, it could cause DWP to suspend their claims until they get a letter from the solicitor to confirm it is still within probate. At which time, benefits would recommence.
    You should report the Child Benefit abuse now, but I'm not sure on the rules of Child Benefit, to know if that is definately fraud. It would help the fraud team if you know the name and address of the person who the child is living with.
    Do you know if they live together and are claiming as a couple or are they claiming as single people and not telling DWP they are a couple living together?
    If you really wanted to stick it to them, you could wait for a year and then report the inheritance to DWP fraud. (give them time to commit the offence). If they hadn't reported it by then to DWP, they would have fraudulently been receiving benefits. The DWP only take cases worth more than Ј2,000 to court.
    After a year it would be worth more than Ј2000 to the DWP and they would have to pay it all back, plus a fine (or imprisonment) and a criminal record.
    Can you get insurance to cover an invalid will? Doesn't sound plausible to me. How much would it cost to contest it?
  • Once probate has been granted on a will this is when a person legally own's the inheritance and that is the point it needs to be declared.
    It makes no difference when it hit's the bank account as sometimes, mainly when family members are the executors, the money is left with family members so that it is hidden from the DWP etc.
    However probate and will's once filed become public documents which can be obtained for evidence.
    The Ј2,000 limit is now Ј4,000, not sure if this has been widely publicised as yet, however should it be believed that it has been intentionally hidden then they could still prosecute for a lower amount.
  • Surely you were signing off the accounts from your fathers estate?
    So at that point what had your Mother's coerced will to do with anything as she hadn't yet inherited the estate from your father?
    You also state he the "boyfriend" had power of Attorney when your Mother was alive, therefore if the Lasting Power of Attorney for Finance was registered and he was managing her affairs prior to her death you are quite within your rights to ask to see the accounts he would have had to keep.
    I dont buy into the insurance email being anything of any substance and at that point your mother was alive so doesnt make sense what you are saying. Your Mother inherited from your father under the rules of intestate. If you have a copy if state email it would be evidence of their complicity.
    I also don't see how they could take our a court order against you if you live outside the UK or how they could afford to do so.
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