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Thread: Inheritance and ESA

  1. #1
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    Inheritance and ESA

    Hello

    I've just found these forums and wondered if anyone could help.
    I am due to recieve some inheritance of around £28k. My partner claims ESA income related. I recieve CTC, CB, Carers, also DLA for my 12 yr old son. I have 3 other children 16 and under.
    I understand that the ESA will stop but will they close the claim and we will need to re claim when our capital reaches under 16k? Or does the claim stay in the background until we need it?

    Does anyone know what is classed as deprivation of capital the exact rules?
    I am in need of a car. My son (who receives dla) goes to school 40 miles ish away and I often need to get to him or school meetings as he is in a specialist school. Would this be classed as deprivation of capital?

    I am going to make an appointment with citizens advice but it will take weeks to get an appointment. So wanted a rough idea if possible.

    Thanks all.

  2. #2
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    Will answer this as best I can.

    With ESA you will have an underlying entitlement, so it won't be stopped but you wont get paid any. Only when money is under 16k will it be paid again at a reduced rate (£1 less a week for every £250 over 6k).

    There are no exact rules with deprivation of capital. A £2000 car would be fine, but a £15,000 flashy new motor wouldn't. You are best off phoning the DWP to ask what a fair amount would be to spend on a car that they wouldn't class as deprivation of capital.

    It would all be about living within your means. 10-15% of it on items to remember the person by would be fine I expect.

    They would also look into spending. So if you spent £1000 per month to live, bills, food, travel costs and since the inheritance spend £2500 a month, they will question this.

    Like others will advise, keep receipts of spending. Don't spend more than what you would spend in a typical month

  3. #3
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    The Rough Assessment: All "Income Related" Benefits including All Tax Credits can/may be affected, any DLA will NOT:- you need to check whether your partner has an "underlying right to Contributions Based Benefit" (ESA), + your Carers Allowance should be safe.
    Best Advice: tell them (DWP, all depts) when you receive it, and talk to a Benefit Adviser (CAB) ASAP.

  4. #4
    Senior Member nukecad's Avatar
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    There have been a few threads about inheritance and deprivation of capital recently.

    Rather than repeat everything here could I suggest that you use the searchbox at the top right of the page to look for 'inheritance' first and then 'deprivation'.
    Those will bring up links to previous threads discussing these, wich may answer your questions.
    Look at the dates they were made, obviously the more recent ones may be more relevent.

    To get you started here are a couple:
    http://www.youreable.com/forums/show...eipt-of-IR-ESA
    http://www.youreable.com/forums/show...ion-of-capital

    As Careruk26 says there are no exact rules on 'Deprivation of Capital', it all depends on what you can persuade a DWP Decision Maker is 'reasonable'.
    If you plan to spend any large amounts it's best to get this cleared, in writing, before spending it.

    If you want to see just what the Decision makers work to you can find it here:
    https://www.gov.uk/government/upload...90/dmgch52.pdf
    Deprivation of Capital starts at 52805 on page 149. Warning it's pretty complicated.

    I'm assuming that you are not working yourself.
    I would work on the basis of not spending any more per week than an 'avareage working family' in your area would have as income. (Google it?)
    And clear any large purchases with the DWP.
    I would consider that reasonable, but there again I am not a DWP Decision Maker.
    Good reading, and please com back with any more questions once you have digested som of those links.
    I'm intelligent enough to know that I don't know everything.
    But I'm good at searching for, and finding, stuff.


    Migration from ESA to Universal Credit- Click here for the facts

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