Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Only savings up to 10K are ignored in benefit calculations so with 100K swilling around yours will definitely be affected.
If you give it away you create a Potentially Exempt Transfer (PET) in your Inheritance Tax (IHT) affairs. PETs run off at a taper and in the event of decease within 7 years are added back to the estate for IHT. PETs are the first to suffer IHT and if the estate cannot meet the tax the liability cascades down to the beneficiary for immediate payment. However, as IHT does not kick in until 325K this will not be a problem. IHT is handled by HMRC.
If you do not have the 100K when claiming from DSS there is nothing to declare.
I do hope that you have found my reply of assistance.
That department would have to prove that you had the capital sum at the time of claim.
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