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Mum in law sold her house and moved into council flat...

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....and with the proceeds of her house sale she wants to give her 3 children £10000 each as their inheritance.
This will leave her with approx. £18000 when she has paid off her debts and moving fees.

Now, my hubby and I say she cannot give that money away and then claim benefits like Housing benefits, Council Tax benefits and pension credits (she's 66), she says she's spoken to a financial advisor and he has told her as long as she has no more that £16K she can claim benefits.

Does anyone know if she is able to give this money away and claim benefits please? (I hope my question makes sense)

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