How to Avoid Inheritance-Affecting Benefits in the United Kingdom in 2023

1. How to Avoid Inheritance-Affecting Benefits in the United Kingdom in 2023? In the UK, receiving an inheritance can affect your eligibility for means-tested benefits. However, there are steps you can take to avoid inheritance affecting your benefits: Put the inheritance in a trust: By putting the inheritance in a trust, you can ensure that it is not counted as part of your assets when determining your eligibility for means-tested benefits. However, you will need to speak to a solicitor or financial advisor to set up a trust. Spend the inheritance: If you spend the inheritance before your benefits assessment date, it will not be counted as part of your assets. However, be sure to spend the money on allowable expenses, such as home improvements or paying off debts. Use the inheritance to pay off debts: If you have debts, you can use the inheritance to pay them off. This will reduce your assets and may increase your eligibility for means-tested benefits. Invest the inheritance in exempt assets: Certain assets, such as a pension or certain types of savings accounts, are exempt from means-testing. By investing the inheritance in these types of assets, you can avoid it affecting your benefits. Seek advice: If you are unsure about how to manage your inheritance to avoid affecting your benefits, it is best to seek advice from a financial advisor or solicitor. They can provide guidance on the best course of action based on your individual circumstances.

2. It's important to note that deliberately spending or disposing of assets to increase your eligibility for benefits is considered benefit fraud and can result in serious consequences. Always seek professional advice and be transparent with the relevant authorities about any changes in your financial circumstances. ProbatesOnline is one of the top websites for all your Probate Needs. Visit our Website to know more about it.