Inheritance, deprivation of capital, mental health

[pleasehelp7]

Hi,

 

Just looking for some advice as am fretting hugely and feeling a bit confused by the rules.

 

To explain as simply as I can...

 

I am currently in receipt of high rate DLA and income related ESA in the support group. I was awarded both of these at reassessment without any difficulty and wasn't even called to a medical for my ESA. I have been on these benefits for a long time and have also been on housing benefit for about two years since I moved into my own flat. I suffer from mental health difficulties including a long term eating disorder and type 1 diabetes which means my physical health is also very poor.

 

I struggle with extreme spending which has been the case for some time. I have mental health issues and I particularly struggle during the evening times when feeling low. I tend to click click click on websites and buy things I do not need, sometimes parcels arrive and I am not even sure of what on earth I have ordered. By extension my eating disorder is anorexia with binge/purging subtype and the amount I spend on food is disgusting, which has been the case for the past 15 years.

 

In October last year I was seriously sexually assaulted and a week later my dad died. This sent me into a spiral of even worse mental health and excessive spending. I try to return things but don't always manage to, and you obviously cannot return food. But I also have a pile of clothes that I've never even worn.

 

I took out a DRO in 2009 because I had racked up so much debt on credit and store cards. This honestly saved me for 6 years as I could not obtain credit, but after it was lifted I managed about a year until I started applying for high interest credit cards and now have a stack of them which I have been trying to keep up with the minimum payments for. A month ago I took out a loan from natwest to try and consolidate these debts a bit and reduce my overdraft which was costing me around £80-90 a month in interest fees.

 

My brother and I are waiting for an inheritance from my father. There was no will and no need for probate as my father rented, so my brother has had to sort everything out. I am not quite sure how much we will have but it will certainly be above the 6k threshold. Currently it is sat in an account my brother opened but when everything is finalised he will transfer half of that money to me.

 

I am so scared that the DWP are going to class my spending as deprivation of capital. I really, really want to pay off all my debts including my loan because the interest on everything is so high and having that debt looming over me is a major stress. But will they allow me to do this? I imagine the loan may be regarded with some scepticism as it was recently taken out, but I was literally desperate and in a situation where I was going to be unable to pay my rent (yes despite the HB payments),

 

I am thinking of ways I can protect myself. I'd perhaps like to have my mother take care of a proportion of the money in a savings account that I cannot touch. If I blow through the inheritance with my recklessness then I will never forgive myself.

 

The only thing I really want to do is go on holiday, health permitting. I have not been out of this country for about 10 years and feel a break would do me some good. But again, will the DWP permit this?

 

Furthermore, what if I wanted to use some of the money to access some private healthcare; therapy or maybe even a short hospital stay to try and get a hold on my eating behaviours? Obviously this could help me towards better mental health and I'd like to think that some day I might be well enough to begin some part time work, which would ultimately be beneficial for both the governments purse as well as myself.

 

The other thing I am worried about is the whole showing receipts and bank statements, the idea of which I find humiliating largely due to my food expenditure. I found this quite distressing during the DRO claim process. How much scrutiny do they place you under exactly? I know it is different for everyone but what is the most likely scenario I will face?

 

I need to ring the DWP soon and I am so anxious about it. I hate making phone calls as it is and don't know where to start/how to explain.

 

Any advice is much appreciated. Please don't think I want to defraud in any way, I just want to do the right thing.

 

Thank you.

[Nystagmite]

You would only be able to make minimum payments on your loan. Unless it's reached court.

 

In regards to holiday - as I understand it, a small holiday, such as a weekend to France would be ok. But they'd consider a few weeks in Cuba deprivation.

[pleasehelp7]

Yeah I'd be fine just paying the loan in installments as agreed. But I want to clear my credit cards asap as they are all high interest. I paid of some with the loan but not all. Also will my overdraft being wiped be counted?

 

I probably wouldn't be able to take a big holiday because of my health, and my cat.! But just somewhere in Europe for a while to get away from this place and all my bad associations.

 

Thank you for your reply. I felt nervous putting this out there.

Edited March 24, 2018 by pleasehelp7

[tomtom256]

You need to notify the DWP about this straight away, as technically you have access to the money upon request and not from the date your brother gives it to you.

 

They may treat you as being over the £6k from the time the money was transferred into your brothers account.

[odds]

No will, and everything in your brothers named account. Why would the DWP need to be informed at all ?

Nobody on this planet apart from your brother and yourself knows about your financial arrangement as it is all in HIS account to do as he wishes with.

Whilst not encouraging any type of underhand activity why not just leave it where it is and not put it in your own account.

[honeybee13]

If there's no will, odds, then the intestacy rules would apply and the money would be divided amongst the family.

 

As you say, we don't wish to advise lying to the DWP.

 

HB

[tomtom256]

No will, and everything in your brothers named account. Why would the DWP need to be informed at all ?

Nobody on this planet apart from your brother and yourself knows about your financial arrangement as it is all in HIS account to do as he wishes with.

Whilst not encouraging any type of underhand activity why not just leave it where it is and not put it in your own account.

 

That is called fraud, no matter how you sugar coat it.

[odds]

Well there are multi million pounds of tax getting unpaid by major companies in this country, that is acceptable apparently, but let the little man gain a little money left by their parents who have worked all their life, paid taxes on everything and all hell breaks loose.

 

When was the last time you heard in the press about how HMRC had managed to prosecute a company for avoiding tax, never. But as soon as someone is on benefits and gets a bit of money left to them by a parents death they are all over it as if they were responsible for the state of this country is in ............. Good luck to the OP and I hope everything works out in their favour.

 

Whilst not condoning it, I know damn well what I'd do.

Edited March 25, 2018 by honeybee13
Paras

[Mr.P]

When was the last time you heard in the press about how HMRC had managed to prosecute a company for avoiding tax, never.

 

It depends on which papers one reads. Read the London Gazette, and you will regularly see bankruptcy proceedings against numerous companies instigated by HMRC. Then there are specialist trade journals where reports of HMRC prosecution cases are regularly reported as well as more mainstream publications.

 

A couple of examples:

http://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/banker-millionaire-and-fake-spy-revealed-in-hmrcs-top-ten-criminal-cases-of-the-year-2350481

https://www.manchestereveningnews.co.uk/news/greater-manchester-news/manchester-arrest-fuel-smuggling-fraud-10843535

[tomtom256]

Well there are multi million pounds of tax getting unpaid by major companies in this country, that is acceptable apparently, but let the little man gain a little money left by their parents who have worked all their life, paid taxes on everything and all hell breaks loose.

 

When was the last time you heard in the press about how HMRC had managed to prosecute a company for avoiding tax, never. But as soon as someone is on benefits and gets a bit of money left to them by a parents death they are all over it as if they were responsible for the state of this country is in ............. Good luck to the OP and I hope everything works out in their favour.

 

Whilst not condoning it, I know damn well what I'd do.

 

Ah right, that makes benefit fraud ok then!

 

The two are totally separate issues, however tax evasion is always mentioned in order to make benefit fraud acceptable.

 

It's about getting what you are entitled to, not what you want.

[pleasehelp7]

You need to notify the DWP about this straight away, as technically you have access to the money upon request and not from the date your brother gives it to you.

 

They may treat you as being over the £6k from the time the money was transferred into your brothers account.

 

This is incorrect. To explain, there was one payment that was above a certain amount so my brother had to access it by way of a solicitor. She told him that he could not touch the money until everything was paid in, and some payments were made out for example to my dad's credit cards etc. We are waiting for her say so as to when he can take control and give me my porton.

 

Thank you to everyone who has replied. I am terrified tbh and been avoiding coming back here as was worried as to what people might think of me.

[tomtom256]

It's only incorrect as you have changed the story, it's either sat in your brothers account as the OP states or sat with the solicitor he has to use to access it. If there was no probate and no will and the money had already been transferred to the brother as you posted, then it would be yours on asking.

[pleasehelp7]

I haven't changed the story but the situation changed as there was this bigger payment to process. My brother still technically has access as in the bank account is in his name but has been advised that he should not touch the money yet or transfer anything until the accounts are all settled.

 

Please don't try to make out I am twisting things. I am confused by the whole ins and outs of the process as my brother has been sorting it all out.

[Mr.P]

[...] but the situation changed as there was this bigger payment to process. My brother still technically has access as in the bank account is in his name but has been advised that he should not touch the money yet or transfer anything until the accounts are all settled.

 

Your brother is following the correct process. Debts must be settled from the estate before any payments are made to the beneficiaries, and failure to do so could (would ?) result in him being personally liable for these debts. Further more, until he knows the full extent of any debts owed, he is not in a position to dispose of any money nor is he able to give an exact value of your potential inheritance.

 

Regardless of probate being granted, he is duty bound to follow procedure.

[pleasehelp7]

Yes and he is absolutely doing this. I was just thrown by the comment above that said that because he has it in an account it means I need to declare now as I can access it. But I very much can't.

 

My brother has been amazing throughout the whole thing sorting everything out and I am so grateful to him for that as know it can't have been easy on his own.

 

Still hugely fretting about the DWP will view my over-spending, but they can see from my history of DRO etc that struggling with this is not a new thing.

I really hope they can take that into account and not be too judgemental . But know from experience that it can often come down to who you speak to on the end of the phone and who is assigned to your case.

Edited April 7, 2018 by pleasehelp7