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Thread: inheritance and esa

  1. #1
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    Sep 2014
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    inheritance and esa

    Hello all. I'm looking for some advise for my step mum. Long story short my dad died and left some money. My step mum is getting the money but she wants to use the money to help me and my 2 brothers improve our way of life and to improve the life's of her 4 grand children. She wants to spent it on things like carpets, clothes, House hold goods and things to help with schooling ie uniforms, laptops etc... the other thing she would like to do is to give the family as a whole a Christmas to remember.

    Here is what I would like advise on please.

    1. Is she aloud to do the above without it affecting her esa?

    2. If it affects her esa, how will it affect it?

    3. Is she aloud to give me and my brothers and lump sum without it being classed as deprivation?

    4. If she is aloud to give a lump sum, how much can it be before it's classed as deprivation?

    Any and all advise will be greatly received. Thank you in advance

  2. #2
    Senior Member
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    May 2013
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    there isnt a straight answer to this.

    if the dwp and local authority decide that she has intentionally deprived herself of savings to get benefits then they will apply "notional income" rules where they will calculate her claim as if she still has the money.

    a decision about a person spending or giving away capital and if one of their "significant operative purposes" is really a question of fact for each individual case i.e giving away £1,000 is a lot less likely to be an issue than £10,000 and so on.

  3. #3
    Senior Member
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    To add to glasgowadviser's excellent answer (it's always good to read your contributions), it's important to draw a distinction between Contributions Based ESA and Income Related ESA.

    glasgowadviser deals with the situation for Income Related ESA, where there is no hard and fast answer. Any inheritance is treated as capital, and a view would be reached on whether the uses made of that capital amount to intentional deprivation of capital in order to obtain benefits.

    Contributions Based ESA is not means tested and would not be affected by an inheritance.

  4. #4
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    If your in receipt of any benefit you cannot have more than £6,000 or it will affect your benefit and anything over £16,00 effects housing benefit and council tax benefit

    They say contributions based ESA is not means tested but this is incorrect and they do take this into account and also with housing benefit award.

  5. #5
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    Quote Originally Posted by josephine View Post
    They say contributions based ESA is not means tested but this is incorrect and they do take this into account and also with housing benefit award.
    Contributions Based ESA is not means tested, though it is affected by pension income.

    Contributions Based ESA is counted as income for means tested benefits, including Housing Benefit.

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