A woman in Norfolk has been convicted of fraud after failing to inform the Department for Work and Pensions of the inheritance she received whilst claiming benefits.
People work hard throughout their lives to accumulate assets and wealth to hopefully pass on their wealth through inheritance after they die. Whilst this gift is offered with care in the hope of providing their loved ones with a bit more comfort, for some it can create a negative impact.
In particular, those receiving state benefits can lose their entitlement because of the inheritance they receive.
Currently, receiving an inheritance over £16,000 could invalidate a claim or significantly reduce the amount a claimant receives in state benefits.
Linda Walker pleaded guilty to not informing the Department for Work and Pensions after she was bequeathed a £50,000 inheritance following the death of her mother.
The Lynn Magistrates Court ruling insisted Linda Walker knowingly claimed over £13,000 in benefits after she inherited the money despite understanding the inheritance may affect her claim to benefits.
Having claimed Employment and Support allowance since 2013 for a genuine disability caused by a broken bottom disc and spine injury incurred in the 1990s, Ms Walker was anxious of losing a vital income stream and therefore failed to disclose her windfall in 2015 following the death of her mother.
Between March 2015 and October 2017, Linda Walker illegally claimed £13,450.08. During mitigation, Ms Walker’s solicitor highlighted that her client had no previous convictions and was ‘extremely remorseful’ about her actions. Currently, Ms Walker is repaying the benefit money she received.
For the omission, Linda Walker received a four week custody sentence which was suspended for six months along with a permanent criminal conviction for fraud.
Earlier this year, hard working ambulance administrator, Lorna Overington was also embroiled in accusations of fraud after failing to inform the relevant Governmental bodies of her inheritance windfall of £100,000.
Worried that the inheritance received from her deceased mother would impact her benefit entitlement, Lorna Overington hid her £100,000 windfall from the state.
The £100,000 inheritance was then used to fund a luxury family holiday to Florida and provide gifts of £10,000 to her son and daughter.
After authorities discovered the inheritance, Lorna Overington was forced to plead guilty to benefit fraud between the years of 2014 and 2017.
Overington was sentenced to fourteen weeks in prison, suspended for two years. Additionally, she has been ordered to repay £19,000.
Following her divorce, Lorna Overington began claiming housing benefit and continued the claim after she inherited a £400,000 property from her mother in New Malden and inheritance payments worth £100,000.
The gift offered by the donor, intended to improve their loved ones life, is expected to be used as a substitute to benefits, reducing the positive impact it was intended to create.
When unexpected inheritance payments could lead to criminal convictions of fraud, it is clear that more guidance is needed to prevent more people from acquiring unfair criminal convictions because of inheritance gifts that are aimed at improving a loved ones life.
Should an inheritance that includes property and non-monetary assets impact a person’s benefit claim? Is this system fair of does it need amending?
