Apologies if I am going over old ground, I have read a few posts on
this subject but am still a bit confused.
My mother-in-law is due to receive a large sum of money (100k+) from
her sisters will.
She is adamant that she doesn't want the money as is going to
distribute it around the family.
Am I right in thinking that as the amount she was given is over the
minimum amount threshold to receive benefit, and it was her decision
to give it all away, she would still have her benefits stopped
accordingly?

On Tue, 6 May 2008 14:25:06 -0700 (PDT), Cookie
 wrote:

>Apologies if I am going over old ground, I have read a few posts on
>this subject but am still a bit confused.
>My mother-in-law is due to receive a large sum of money (100k+) from
>her sisters will.
>She is adamant that she doesn't want the money as is going to
>distribute it around the family.
>Am I right in thinking that as the amount she was given is over the
>minimum amount threshold to receive benefit, and it was her decision
>to give it all away, she would still have her benefits stopped
>accordingly?

She should take advice. She may be able to pass it directly on to the
people she's leaving her own estate to.
-- 
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Ah fetch it yourself if you can't wait for delivery
http://www.freedeliveryuk.co.uk
http://www.holidayunder100.co.uk

Cookie wrote:
> Apologies if I am going over old ground, I have read a few posts on
> this subject but am still a bit confused.
> My mother-in-law is due to receive a large sum of money (100k+) from
> her sisters will.
> She is adamant that she doesn't want the money as is going to
> distribute it around the family.
> Am I right in thinking that as the amount she was given is over the
> minimum amount threshold to receive benefit, and it was her decision
> to give it all away, she would still have her benefits stopped
> accordingly?


What benefits is she receiving? Not all benefits are means tested, some 
such as Housing and Council Tax benefits are and she would be caught 
under the deprivation of capital rules for these two benefits.

-- 
Robbie

"Robbie"  wrote in message
news:68c4uaF2rq8b4U1@mid.individual.net...
> > Apologies if I am going over old ground, I have read a few posts
on
> > this subject but am still a bit confused.
> > My mother-in-law is due to receive a large sum of money (100k+)
from
> > her sisters will.
> > She is adamant that she doesn't want the money as is going to
> > distribute it around the family.
> > Am I right in thinking that as the amount she was given is over
the
> > minimum amount threshold to receive benefit, and it was her
decision
> > to give it all away, she would still have her benefits stopped
> > accordingly?
>
>
> What benefits is she receiving? Not all benefits are means tested,
some
> such as Housing and Council Tax benefits are and she would be caught
> under the deprivation of capital rules for these two benefits.

I believe wills can be altered if all the beneficiaries agree. What if
they all agreed to alter the will such that the OPs MIL gets nothing?

--
Andy

Andy Pandy wrote:
> "Robbie"  wrote in message
> news:68c4uaF2rq8b4U1@mid.individual.net...
>>> Apologies if I am going over old ground, I have read a few posts
> on
>>> this subject but am still a bit confused.
>>> My mother-in-law is due to receive a large sum of money (100k+)
> from
>>> her sisters will.
>>> She is adamant that she doesn't want the money as is going to
>>> distribute it around the family.
>>> Am I right in thinking that as the amount she was given is over
> the
>>> minimum amount threshold to receive benefit, and it was her
> decision
>>> to give it all away, she would still have her benefits stopped
>>> accordingly?
>>
>> What benefits is she receiving? Not all benefits are means tested,
> some
>> such as Housing and Council Tax benefits are and she would be caught
>> under the deprivation of capital rules for these two benefits.
> 
> I believe wills can be altered if all the beneficiaries agree. What if
> they all agreed to alter the will such that the OPs MIL gets nothing?
> 
> --
> Andy
> 

The OP's MIL would have to see a solicitor before even attempting 
anything like that. It's fraught with so many potential problems.


-- 
Robbie

Thankyou for you replies.
Mogga, that sounds interesting. Any websites with info on that?
Robbie, she receives housing benefit and disability.
Andy Pandy, wasn't even aware that could be done as it is her sisters
will.
Robbie (again), that's what I keep telling her. It is a very simple
will though. 4 way split.

Cookie wrote:
> Thankyou for you replies.
> Mogga, that sounds interesting. Any websites with info on that?
> Robbie, she receives housing benefit and disability.
> Andy Pandy, wasn't even aware that could be done as it is her sisters
> will.
> Robbie (again), that's what I keep telling her. It is a very simple
> will though. 4 way split.
> 

Could you be more specific about the "disability" benefit as there are 
possibly 4 benefits she could be receiving! Three aren't means tested 
(Incapacity benefit, Disability Living Allowance and Severe Disability 
Allowance), one is (Income Support). Income Support is often paid 
alongside or in place of all of those benefits.

-- 
Robbie

Hi Robbie, it's disability living allowance she is on. So she will
still get that regardless?

Cookie wrote:
> Hi Robbie, it's disability living allowance she is on. So she will
> still get that regardless?

Yeah, DLA is not means tested, so that would still be paid regardless of 
savings.

-- 
Robbie

In message , Robbie 
 writes
>Cookie wrote:
>> Thankyou for you replies.
>> Mogga, that sounds interesting. Any websites with info on that?
>> Robbie, she receives housing benefit and disability.
>> Andy Pandy, wasn't even aware that could be done as it is her sisters
>> will.
>> Robbie (again), that's what I keep telling her. It is a very simple
>> will though. 4 way split.
>>
>
>Could you be more specific about the "disability" benefit as there are 
>possibly 4 benefits she could be receiving! Three aren't means tested 
>(Incapacity benefit, Disability Living Allowance and Severe Disability 
>Allowance), one is (Income Support). Income Support is often paid 
>alongside or in place of all of those benefits.
>
I was always under the impression Incapacity benefit, was, means tested 
and if it isn't, DWP owe me a load of money!
-- 
dave griffiths

dave griffiths wrote:
> In message , Robbie 
>  writes
>> Cookie wrote:
>>> Thankyou for you replies.
>>> Mogga, that sounds interesting. Any websites with info on that?
>>> Robbie, she receives housing benefit and disability.
>>> Andy Pandy, wasn't even aware that could be done as it is her sisters
>>> will.
>>> Robbie (again), that's what I keep telling her. It is a very simple
>>> will though. 4 way split.
>>>
>>
>> Could you be more specific about the "disability" benefit as there are 
>> possibly 4 benefits she could be receiving! Three aren't means tested 
>> (Incapacity benefit, Disability Living Allowance and Severe Disability 
>> Allowance), one is (Income Support). Income Support is often paid 
>> alongside or in place of all of those benefits.
>>
> I was always under the impression Incapacity benefit, was, means tested 
> and if it isn't, DWP owe me a load of money!

It is for people who receive works pensions above a certain amount and 
for the old adult dependency increase, ADI (but only for that ADI and 
then it depends on the wages of the other adult). But there's no general 
means test as with Income Support, which can be paid in place of / on 
top of Incapacity Benefit.

-- 
Robbie

Cookie wrote:
> Apologies if I am going over old ground, I have read a few posts on
> this subject but am still a bit confused.
> My mother-in-law is due to receive a large sum of money (100k+) from
> her sisters will.
> She is adamant that she doesn't want the money as is going to
> distribute it around the family.
> Am I right in thinking that as the amount she was given is over the
> minimum amount threshold to receive benefit, and it was her decision
> to give it all away, she would still have her benefits stopped
> accordingly?

HB and CTB are means tested and could take the amount into account *if 
she disposes of it in order to secure or increase her benefit*. If she 
has a bonafide reason other than that to give it away (or spend it) , 
and can show this to be the case then it wont affect these benefits.
However, with a sum of 100k it might be difficult to convince the HB/CTB 
assessors of this. They tend to disqualify for large capital. If this 
happens, an appeal would be worth the effort.

The relevant reg is reg 49:

	49. Notional capital 	
			
	(1) 	A claimant shall be treated as possessing capital of which he has 
deprived himself for the purpose of securing entitlement to housing 
benefit or increasing the amount of that benefit except to the extent 
that that capital is reduced in accordance with regulation 50 
(diminishing notional capital rule).

(reg 50 sets out a complicated formula by which notional capital is 
treated as diminishing as if it were being spent, but I shan't confuse 
the issue by posting it here).