Some friends of mine haven’t had a lot of luck and lost a lot of money in a business venture. I was thinking of leaving them something in my will, but this may just prevent them claiming state benefits. Is there a way round this?
It may be better to help your friends out now, since voluntary payments by relatives, friends and charities are generally ignored for assessment purposes, unless the amount gives the recipient capital in excess of £16,000. However it may be possible to set up a trust to help them out when you’re gone. Discuss this with a solicitor. I should add that if you leave anything to someone who is still the subject of a bankruptcy order the money is likely to go to their creditors.