Non-contributory state pension entitlement after large inheritance

Conan said:
See Sections 3 and 4
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I don't see support for your claims in these sections.

The part on wilful deprivation talks about property and income, but not very clearly does not use the term capital which has a different definition set out above, namely consisting of "savings and investments".

The omission of the term capital from this section is hardly accidental.

All I am doing is a close reading of the text. I can't see any support for a claim that gifting cash savings to your kids would interfere with your means-tested entitlements.

I am happy to be corrected by someone with direct knowledge of the process or by reference to other guidelines or legislation, but I just don't see it on paper.
 
See section "Capital and Property not personally used...". It outlines how they value capital (incl Cash) in income terms.
 
Conan said:
See section "Capital and Property not personally used...". It outlines how they value capital (incl Cash) in income terms.
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Yes that's clear.

But OP is talking about a scenario where he gives his cash away and he goes back to having €20k which is exempt.

Where does it say you will be penalised for giving away your savings?
 
Giving the money away, losing it by betting on the favourite in Leopardstown or buying a Mercedes does not change the fact that he inherited the funds. Having inherited the funds he is obliged to inform Social Protection.
 
If the recipient of the non-contributary pension invested the money in his principal private residence for argument sake a large extension costing €300k thus increasing its value but keeping €20k in savings would this permit him to retain his pension?
 
Conan said:
Giving the money away, losing it by betting on the favourite in Leopardstown or buying a Mercedes does not change the fact that he inherited the funds. Having inherited the funds he is obliged to inform Social Protection.
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Indeed.

But you've claimed that these actions will reduce his means tested pension but you can't point to where it says this in the guidelines.
 
NoRegretsCoyote said:
Indeed.

But you've claimed that these actions will reduce his means tested pension but you can't point to where it says this in the guidelines.
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I never suggested it would reduce the OP's pension. What I said was that if you are in receipt of a "means tested" benefit and your financial circumstances change, that you are obliged to advise the Dept. That's why I suggested he contact his local Citizens Information office to determine whether the amount of his inheritance might impact his Non Contributory Pension.
 
I haven't read through recent links posted but definitely willfully depriving yourself of funds, especially just hard cash will definitely affect a means tested payment. I dealt with something similar where lady had sold her house and moved to one recently left to her by a sister, she gave away to her children all the funds from the sale, she lost her payment and spent months appealing it however she did get it back eventually on appeal. I can't remember though the basis of what reason she was using for appealing!
 

It was 1am, and I was trying to get to bed, I suppose. Sorry.
 
The OP is 70, he should also note that should he need to avail.of Fairdeal scheme in next five years, the €300,000 will also be taken into account whether he gives it away or not.
 
If the OP does is not entitled (I don't know if they are not) to keep claim pension this would have serious implications if the OP were to die (god forbid). When the OP estate goes to probate the revenue commissioners will see that he has been claiming a pension when not entitled to since inheritance. In this instance revenue will clay back every cent that was paid to the OP via pension since they got inheritance and take it from the Will of the OP. There is an old saying in the Revenue office - "If we don't get you when your alive - we'll get you when you are dead", which could well be the case in this instance.
 
My advice would be to write to DEASP outlining your plans and asking what the impact on your state pension would be. If you don't get the answer you want, appeal it.

If after appeal it is clear that giving your money away would see a loss of pension then don't do it. If you can live on 13k a year then you will be a long time burning through €300k, and whatever is left will go to your kids as planned.
 
€300,000 is huge sum in cash, few pensioners would have such an amount. Why should tax payers continue to pay a state pension to a person of such means especially when they never contributed to the prsi fund?
 
Saavy99 said:
€300,000 is huge sum in cash, few pensioners would have such an amount. Why should tax payers continue to pay a state pension to a person of such means especially when they never contributed to the prsi fund?
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I don't disagree with anything you have said. I am just trying to navigate the situation I have found myself in as best I can. I dont have a history of having a lot of money so I have a lot of learning to do.
 
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