Protect your Relatives’ Benefits with a Will Trust or they could lose their entitlement

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If your relative inherits a sum of money from your Will, whilst they are in receipt of means-tested benefits, the inheritance will impact upon their future benefits and the way they are calculated.

Declaring a change of circumstances

Many means-tested benefits are affected by any additional income, savings and inheritance. Any change of circumstances must be declared to the Department for Work and Pensions (DWP).  If you are unsure as to whom you should contact, you can find out by visiting the Government’s website – Benefits: report a change in your circumstances.

Any attempt to conceal any inheritance whilst on benefits could result in serious consequences.

Many beneficiaries attempt to vary their inheritance by means of paying off debts, gifting money or creating trusts.  Please discuss this with the DWP to check what they agree is allowable without impacting upon your benefits, but it may be too late to make any of these variations.

It is solely the responsibility of the person making the Will to make this provision in their Will with a Trust.

How can a Will Trust help?

There are different types of Trusts designed to protect and assist beneficiaries and save tax.  If you have any concerns about your child or relative inheriting a lump sum, a Trust may help as you may be worried about:

  • How they would spend it,
  • Would they spend it too quickly,
  • Would they be too vulnerable to look after the money,
  • Would it affect their benefits,
  • Would they have to pay for social care or a care home.

How we can help

To find out how we can prepare a Will to create a Trust, please contact our team on our dedicated Wills, Probate and Planning for the Future helpline on 0161 694 4147 for your free initial telephone discussion. If you prefer, you can fill in our online form or alternatively, you can email us on bromleys@bromleys.co.uk and we’ll call you back.