inheritance & benefits

[123bernadett]

How do benefits dept find out if you've inherited money & not told THEM?

[boxtops]

Do they? Someone else might tell them?

[plowter]

HMRC tells DWP how much tax you've paid on your savings. They can use that to guesstimate how much you have in savings and investigate further.

[sandyRoe]

They cross check lists of benefit claimants with bank accounts. If Mr X had 100K in a savings account and was claiming a means tested benefit he'd be called in and asked to explain why.

[ubasses]

May be when the Executor applies to the Tax Office to see if there is any outstanding tax to pay or be reclaimed for the estate

[ummmm]

Someone told them.

Can they go through HMRC? I think if money above a certain amount is deposited then the bank inform HMRC.

^^or did I dream that?

[ubasses]

The Bank would not report unless they were suspicious of money laundering and no evidence of source of funds was available.

[sara3]

I think all accounts are now linked to National Insurance numbers, and NI number data gets cross-referenced. the benefit fraud people can sit back while capital references appear on their desks!

[123bernadett]

and if I put it in anothers account?

[ummmm]

Then they'd have control of your money.

[ummmm]

You're also asking us how to be a benefits cheat.

[sandyRoe]

You'd need proof of identity to open another account. You'd be back to square one.

[sara3]

then the "other" person would have to explain, and may end up in as much trouble as you.

why claim benefits when you don't need to?

[sandyRoe]

You could put it in my account if you like.

[ubasses]

All payments must be payable to the third party or bank will not accept them, and of course you could cause problems for them. Their bank will want to know where the money came from and they would not have the paperwork to prove legitimacy.

[sandyRoe]

How much is it, anyway?

[sherrardk]

They can, and do, check your bank account that any benefits are paid into.

[123bernadett]

I'm only meaning £500

[friedgreentomato]

So you want to continue claiming benefits whilst having an inheritance? Nice

[ummmm]

Lol...don't worry about it. You can 6k in the bank and still be entitled to full benefits.

[sara3]

are you suggested the benefits dept has found out you have £500?