Inheritance and benefits

[Aquamarina]

Hi,
A friend of mine is about to get an inheritance. He works the minimum of 16 hours per week and claims benefits. His solicitor has told him that he can drip feed my friend his inheritance so that it doesn't stop him claiming his benefits because he won't have enough money in the bank at one time. This didn't sound right to me so I'm just wondering whether this is legal, or some kind of loop hole? Or whether down the line this solicitor could get them both in trouble!
Thanks for reading.

[ostell]

Your friend is the owner of the money and would have to declare that ownership on the forms. He would be the one liable to penalties.

[efpom]

Your friend, as a beneficiary has an immediate right to all the funds in his beneficence, on finalising the estate account. Meantime, the executor of the estate, can make a series of interim payments, pending finalisation. However, that comes with strings attached, i.e. the executor can call for the money to be repaid, if the final account requires it.

I think I have that right.

So, the question becomes whether the funds paid over are simply a loan, which may extinguish when the estate accounts are finalised, and if so, is that 'loan' deemed to be capital?

[des8]

If the solicitor is holding the funds in trust, the solicitor is the owner of the funds which are for the benefit of your friend.

The matter is not straightforward, trust law is complex.
If the solicitor is advising your friend I would act on the basis he, the solicitor, is correct.
If later there are problems, your friend might have a claim against the solicitor for professional negligence

[efpom]

You may find this useful.
https://assets.publishing.service.go...of-capital.pdf

[Peridot]

Hi as Des8 mentioned there are possible ways of dealing with this by way of a discretionary trust although it is complicated. He needs to get some formal advice from the solicitor to clarify what is actually being suggested here. If your friend has debts to repay these could be settled with the inheritance which may then not have such an impact on his benefits.
If the benefits are affects then once the sum has reduced he can reapply although I appreciate this can be a lengthy process!
If the inheritance is over £16k his benefits will be stopped until that sum is reduced. Below that amount the benefits are reduced by an amount for every £250 over £6k there is in savings. This link may help explain it more clearly https://www.moneyadviceservice.org.u...ffect-benefits