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Thread: inheritance

  1. #1

    inheritance

    regarding inheritance can you help l rent my home from a housing assionsion, very sadly my mother died in my home in fact in my arms suddenly, l find l can not stay in my flat any longer due to trauma. As l have been left a sum of money l could buy a home? would it be seen as being deprivation of capital l have been to my GP as am having flashbacks and this has caused me great distress. The move also would enable me to buy a shared equity property and thus my partner could move in with me Thus give me support my partner does not claim any benefits the Bendfits l get are ESA support group HB CT means tested and inharnst pip Are you able to offer any advice thank you

  2. #2
    Senior Member Lighttouch's Avatar
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    Shared ownership is a good idea. You could buy 25 / 50 or 75% share of the property and pay rent on what percentage is left.

    If you got a 2 bed flat you would also need to factor in a service charge that goes up every year.

    The moe would give you and your partner a new start. Depending on how much earnings your partner brought in you might be eligible for some Housing Benefit.

    You would probably lose any single person discount you might have had if your partner moved in as you'd be considered to be in a relationship so he couldn't be considered to be a 'disregarded person'.

    This website might be useful. https://www.turn2us.org.uk/Benefit-g...ousing-Benefit

  3. #3
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    Don't do anything suddenly. Have a good hard look at your and your partners finances. Depending on the inheritance you will lose HB and CT. PIP is not affected by your savings. ESA however is and you will probably lose it . (this is from experience) If you are in receipt of DP, you probably now need to self fund.

    If and when you move in together, the DWP need to know (change of circumstances), you will need to make a joint claim for ESA, they will want declarations of income and savings from BOTH of you. You may find they say you have too MUCH money, (laughable ain't it). Basically you will be living off those savings, so be wise how you spend it.

  4. #4
    Senior Member nukecad's Avatar
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    Firstly, leaving aside the deprivation question for now, have you told the DWP and the council about this inheritence?

    If it's enough to purchase a property then it's almost certainly going to be enough (over £16,000) to stop payment of any Income Realted benefit.
    However see below about disregards for buying a home.

    Your PIP will continue to be paid, it's not Income Realted so is not be affected by capital.
    The main components of your ESA (£111.65) will continue to be paid, as you were transfered from IB to ESA Support Group then it's Contribution Based so not affected by capital.

    However any premiums (EDP, SDP) paid with your ESA would stop as they are Income Related.
    The Housing Benefit and Council Tax Relief are both Income Related and so will both also stop.

    As your claims will be reduced to CB claims only (because of the capital) then having a partner in your current property will not change them, but you still must inform the DWP/Council that you are a couple.
    The Council Tax payable will increase.


    If you intend to buy another property then the twin issues of 'Disregards' and of 'Deprivation' may arise.
    (It may also change the status of other benefits depending on just how much capital you have left after any purchase).

    Disregards:
    Disregard means that your current benefits can continue to be paid as they are, but you must get the DWP agreement to disregard (and you must buy a home).
    Normally money intended to buy a home can be disregarded for up to 26 weeks, to give you time to find/buy one. But the rules are very complicated as usual.

    However I can't find anything specific in the Decision Makers Guidance about using inherited money to buy a home.
    I believe that it will have to be a case of telling the DWP what you intend to do as soon as possible, and seeing if they agree to disregard.

    Deprivation of Capital:
    The full term is "Deprivation of Capital with a view to claiming or increasing benefits".

    I have found case law on rightsnet where it has been judged that using capital to buy a home should be considered as deprivation If you did it knowing that your benefits would be more than if you didn't buy the home.
    It's a funny situation because your total capital hasn't changed. (You've just moved some into a home which is not counted as capital for benefit purposes).
    The case law is complicated to read being a judges statement, but if you fancy a go it's spread over posts #1 and #2 here:
    https://www.rightsnet.org.uk/forums/...d/10780/#49692

    However going back to the DM guidance there is chapter 52843 which states: (My underlining)
    52843 Claimants or partners have not deprived themselves of capital for the purpose of
    getting benefit or more benefit if they

    1. say exactly what they are going to do with their capital and
    2. are told by the DWP it will not affect the amount of benefit they can get and
    3. do what they said they were going to do with their capital.
    So again you need to talk to the DWP ASAP and try to get their agreement, in writing, that using the inheritance to buy a home will not be counted as deprivation of capital.
    Once they have put that in writing then they can't (reasonably) go back on it.
    Last edited by nukecad; 05-10-2019 at 03:21 PM.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

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  5. #5
    As yet l have had no money its in probate, l will have enough money to buy a shared ownership home as the estate of mt mothers includes a house and large savings. Has to be divided between three of her children. So before the house is sold l believe l enherent about £80 grand This sound so bad ( like money grabbing) My Partner does not claim any Benefits and does not live with me yet but also can get a mortgage, so have plenty to cover deposit. Am worried to inform DWP as yet as one l have not had the money and when would be the best time ( if any to inform them of money and buying house ect ) Thank you all for your wise words Am just in a bit of a state and have a great fear of the DWP,

    so should l ask them before l get he money? As am worried l would have my ESA stopped and have nothing to live on till all sorted
    Last edited by lost; 05-10-2019 at 07:52 PM.

  6. #6
    Senior Member nukecad's Avatar
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    I think it's best to inform them now that you will be inheriting this money, which is currently still in probate.

    There are some funny rules about when the money is counted as being yours, even if it's in probate and you can't touch it yet.
    Normally it would not be counted as yours until the executors distribute it; but if the inherited money is coming from the sale of a property which has been left in a will then it can be different.

    At the same time inform them of your intention to use (some of?) this money to buy a home.

    TBH I think the best people to speak to about this for more advice will be AgeUK.
    They are used to dealing with issues aound benefits, and isues around wills/inheritance, so should be the best placed to advise you.
    You can find their branch local to you by putting your postcode in this webpage:
    https://www.ageuk.org.uk/services/in-your-area/
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

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