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Thread: ESA/PIP and inheritance

  1. #1

    ESA/PIP and inheritance

    Hi
    I currently receive ESA, part of it is means tested. I also receive PIP and housing benefit.

    My dad died last Oct. A Solicitor has been dealing with the estate. He has been very slow.

    The inheritance is a mixture of capital and my dads house. The solicitor confirmed we could put the house on the market before probate came through. We now have an offer on the house. I will therefore
    Stand to inherit approx 150k, and so will my brother.

    I know that once I am in receipt of the money, I lose several benefits. E.g.. Housing benefit.

    I wish to purchase a house for myself and I understand this is not classed as deprivation of capital.

    I rang the DSS and they confirmed that I am able to purchase a house with the inheritance.

    It's a slow process finding a house though. I anticipate the monies from the sale of my dads house will be in the executors account in a couple of months.

    I have no need to take my share out of the executors account until I have found a property and I need to hand over the money to buy it.

    I don't want to do anything wrong. I asked the DSS, when do you say I am now in receipt of the capital? Is it when probate is applied for? When funds are in the executors account? Or when I take it out of the executors account?

    The DSS said it is only when the money hits my own bank account. I have this call recorded as my phone automatically records everything.

    Could I not therefore just keep it in the executors account , and therefore I can carry on receiving my full benefits, until I am ready to buy a house?

    I was a bit surprised that the DSS said this? I mean, if what they said is true, someone could just keep the money in the executors account and occasionally pay themselves 5k,,keeping them under the 6k rule?

    I really don't understand? It would be great if I can carry on having my rent paid, until such time that I find a place to buy, thereby not eating into my inheritance to cover the lost benefits. But if this was allowed, surely people with inheritance would just keep the funds in an executors account.

    My brother will be taking his share out once it's available. But he has no problem with my share sitting there till I am ready to use it to buy a house.

    Many thanks for your help.

  2. #2
    Just checked the recording and th DSS said twice 'it's only when it hits your own bank account'

  3. #3
    Quote Originally Posted by KavanaUK View Post
    Hi
    I currently receive ESA, part of it is means tested. I also receive PIP and housing benefit.

    My dad died last Oct. A Solicitor has been dealing with the estate. He has been very slow.

    The inheritance is a mixture of capital and my dads house. The solicitor confirmed we could put the house on the market before probate came through. We now have an offer on the house. I will therefore
    Stand to inherit approx 150k, and so will my brother.

    I know that once I am in receipt of the money, I lose several benefits. E.g.. Housing benefit.

    I wish to purchase a house for myself and I understand this is not classed as deprivation of capital.

    I rang the DSS and they confirmed that I am able to purchase a house with the inheritance.

    It's a slow process finding a house though. I anticipate the monies from the sale of my dads house will be in the executors account in a couple of months.

    I have no need to take my share out of the executors account until I have found a property and I need to hand over the money to buy it.

    I don't want to do anything wrong. I asked the DSS, when do you say I am now in receipt of the capital? Is it when probate is applied for? When funds are in the executors account? Or when I take it out of the executors account?

    The DSS said it is only when the money hits my own bank account. I have this call recorded as my phone automatically records everything.

    Could I not therefore just keep it in the executors account , and therefore I can carry on receiving my full benefits, until I am ready to buy a house?

    I was a bit surprised that the DSS said this? I mean, if what they said is true, someone could just keep the money in the executors account and occasionally pay themselves 5k,,keeping them under the 6k rule?

    I really don't understand? It would be great if I can carry on having my rent paid, until such time that I find a place to buy, thereby not eating into my inheritance to cover the lost benefits. But if this was allowed, surely people with inheritance would just keep the funds in an executors account.

    My brother will be taking his share out once it's available. But he has no problem with my share sitting there till I am ready to use it to buy a house.

    Many thanks for your help.
    I think the executor (in this case a solicitor) must distribute the 'estate' once everything has been finalised -- probate obtained, debts settled etc. I have not heard of anyone leaving their money in an executor's account. Check with the executor.

    Even if this were true then you would have a beneficial interest in the money and this would be counted as capital for benefit purposes.

    I believe the call handler misunderstood you or gave the incorrect information.

    This link:

    https://assets.publishing.service.go...95/dmgch52.pdf

    scroll down to 52172

    explains it.

    However, you have been told (by the DWP?) that you can use this money to buy a property and this will not affect your ESA. I hope you got this in writing from a Decision Maker? If not, then you need to get written confirmation. At the same time you need to ask how long after you receive the money can you have to find a house.

    All the time you continue to receive the income based 'top up' to your contribution based ESA you will continue to have automatic entitlement to your HB.
    I try my best

  4. #4
    Surely it's worth spending some money to get proper legal advice.

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