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Thread: inheriting pension payment and ESA

  1. #1
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    inheriting pension payment and ESA

    My brother died recently, leaving a significant amount in pensions. The pension providers are saying they will distribute the money amongst the family at there discretion as no beneficiary was cited by my brother. I am on income based ESA and may have to move to UC shortly. I am worried that I will lose my benefit if they allocate money to me. Does anyone know if I can vary the pension providers allocation so the money goes to my other three family members and none to me?

  2. #2
    Senior Member nukecad's Avatar
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    There is probably something specific in the pension terms about where payments on death should be paid in such a case, which means that such payments can bypass/avoid a lengthy probate.

    If there is then it's a legally binding clause and they can't usually vary those terms.

    If your share takes your savings to over £16,000 then you would no longer qualify for income reated benefits.

    Even if you could refuse the inheritance then the DWP could take the view that you have done it deliberately in order to keep claiming income related benefits (which would be the truth).
    In effect you will have given away your money to your siblings so that you can (continue to) claim IR benefits.

    That is known as "Deprivation of Capital with a view to claiming or increasing benefits" and the DWP would treat it as if you had got the money you were entitled to and stop your income related benefits anyway.
    Last edited by nukecad; 23-09-20 at 15:10.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

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  3. #3
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    Thanks Nukecad, I thought that might be the case. That informs my decisions then. You have helped me so much at this difficult time, I can't thank you enough

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