Disability Allowance and Probate

expatoz

Hello

i am currently receiving Disability Allowance and will be receiving an inheritance following the death of my mother. I’m in a quandary about what to do, I know I’m allowed to have 50000 and my benefits won’t be affected but I want to gift my children some money and have a few loans to pay back but I’m wondering if I gift money and buy things to bring me under the threshold will I be penalised for spending what is essentially my money and it’s well under the 324000 limit. I really can’t find any info off anyone, it’s not a huge amount and all the money advisors want me to buy insurance or shares. Basically I need to know if I’m allowed to say for example buy a car or something and gift money to my children without being penalised

Ginger83

https://www.boards.ie/discussion/2058311246/disability-allowance-and-probate

Disability Allowance is means tested so you are obliged to declare a change in means.

What you are asking could be viewed as defrauding by the DSP. It's not as simple as saying "it's my money" when in receipt of a means tested payment.

Cherry Blossom

You can spend it on whatever you want, car etc. just keep all receipts but if you give it away it could be seen as willfully depriving yourself of the benefit of it and they may assess it for means as if you still have it.

Ginger83

https://www.boards.ie/discussion/comment/121040118#Comment_121040118

When you apply for DA you sign a declaration to inform of any change in circumstances that may affect your payment. You are also legally obliged to do so.

OP spend away if you wish but a review may result in recouping an overpayment by DSP.

fits

You probably need advice from a tax specialist rather than a financial adviser.

Cherry Blossom

https://www.boards.ie/discussion/comment/121040146#Comment_121040146

Yea obviously you have to inform social welfare but you just keep asking to be reassessed every so often as you spend it. The Op will also spend part of it on every day expenses as they will loose at least a portion of their weekly payment by the sound of it it’s well over €50k.

Ginger83

https://www.boards.ie/discussion/comment/121040184#Comment_121040184

Why is the OP in a quandary so? It's very simple. Declare it. They adjust your payment. Spend what you like and as you said reassess.

TooTired123

https://www.boards.ie/discussion/2058311246/disability-allowance-and-probate

Even if you don’t tell longford that you got the money, Revenue will notify them very quickly. When they do, if you haven’t notified them then you’ll have problems.

They expect you to spend some of the money. A new car. Home improvements. A nice holiday.

That’s understandable. It’s actually the most sensible thing to do. Make your home comfortable and safe and warm.

But if you start giving presents to loved ones then you will have “deprived yourself of an asset”.

Keep all the receipts for things you spend the money on. If it comes around that you find yourself at 50000 left (you could reapply at about 65000) they will go back and question all the purchases.

Cherry Blossom

https://www.boards.ie/discussion/comment/121040242#Comment_121040242

They never said they weren’t going to declare it. They just wanted to know if they are allowed to buy a car (they are) and if they allowed to give some to their children (they probably aren’t). I don’t know why people are assuming the worst of the OP.

Ginger83

https://www.boards.ie/discussion/comment/121040532#Comment_121040532

I'm not assuming anything. I advised what needs to be done.

Dempo1

OP needs to consult both a Solicitor & Taxation specialist. There is definitely a change in circumstances. Inheritance & how it affects a Disibility payment is very complex. But affect it, it will.

This was an Q&A which might be helpful to OP

https://www.oireachtas.ie/en/debates/question/2020-07-29/28/#:~:text=If%20the%20parents%20leave%20%E2%82%AC,entitled%20to%20no%20disability%20allowance.