Do Solicitors Inform DWP of Inheritance

Receiving an inheritance can have significant financial implications, especially for individuals who claim means tested benefits. One of the most common concerns is whether the solicitor managing the estate will inform the Department for Work and Pensions (DWP) about the money received. Many assume this happens automatically, but in reality the process works differently and the responsibility lies mainly with the person receiving the inheritance.

The Role of the Solicitor in an Inheritance

A solicitor dealing with probate or estate administration acts on behalf of the executor or administrator of the estate. Their duty is to ensure the estate is distributed according to the will or intestacy rules, pay any debts or taxes, and transfer the remaining assets to the beneficiaries. Once the solicitor hands over the inheritance, their role is complete. They do not act as monitors of the beneficiary’s financial situation and they are not obliged to contact the DWP about changes in someone’s personal circumstances.

Does a Solicitor Notify the DWP

Solicitors do not normally inform the DWP that someone has received an inheritance. Their legal responsibilities lie with the estate and its distribution, not with overseeing benefits. It is the duty of the person receiving the inheritance to notify the DWP if their income or savings have changed in a way that affects eligibility for benefits. Failing to do so can lead to overpayments or even accusations of benefit fraud, which carry serious consequences.

How the DWP Might Find Out

Although solicitors do not inform the DWP, the department has other ways of identifying financial changes. They can carry out checks on bank accounts, savings and other records, and in some cases data may be shared between institutions. If someone continues to receive means tested benefits without declaring an inheritance, the DWP may eventually become aware and seek to reclaim overpaid benefits. Being transparent from the outset is therefore the safest approach.

Why Disclosure Is Important

Anyone receiving means tested benefits such as Universal Credit, Housing Benefit or Pension Credit must disclose an inheritance if it takes their savings above certain thresholds. Even a modest inheritance can affect benefit entitlement. Although this may feel unfair, failing to disclose it can lead to much greater problems in the long run, including penalties and loss of entitlement altogether. Notifying the DWP ensures that benefits are recalculated correctly and avoids the risk of serious complications later.

Conclusion

Solicitors do not inform the DWP when someone receives an inheritance. Their responsibility is to distribute the estate in line with the law, not to monitor benefits. It is up to the individual beneficiary to notify the DWP of any changes to their financial circumstances that may affect eligibility. By taking this step promptly, beneficiaries protect themselves from overpayments and legal difficulties, ensuring that everything is dealt with properly.