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Thread: ESA and inheriting money

  1. #1
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    Red face ESA and inheriting money

    Hello & thank you for letting me join.

    I get ESA and PIP at the moment. I am also about to inherit some money, as my father died at the beginning of the year. I have read other posts relating to this subject, but it does get confusing when reading "How your ESA has been worked out" so I thought I'd type out how mine reads and hopefully some kind person on here will be able to advise me of whether or not I have to declare what I inherit.

    The Employment and support allowance award
    The payment of ESA is based on your national Insurance Contribution records and any additional amount the law says you need to live on.
    .................................................. .................................................. .................................................. ........................................

    Your living expenses £XXXX

    Limited capability for work addition

    Extra money because you are in the support group £xxxx

    Which gives a total income-related amount £xxxx

    Income and Benefits

    No income will be taken off your ESA

    Your income-related abount is £xxxx less £0.00 so you would have been entitled to £xxxx

    However because you are entitled to contribution-based ESA we will pay you £xxxx

    The amounts on this page apply from 3 September 2019 to 25 November 2019

    Yours sincerely


    So the bit that confuses me is because they mention income-related and contributions based on the same page.

    I do hope that someone can help me. Thank you.

  2. #2
    Senior Member TimeLord's Avatar
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    You can get both income related and contribution related payments and you obviously are. Did you start out in the Support group ? Depending on the amount you inherit if it goes over a stated level that will only impact on income related money, not contribution Support group or PIP it may affect council tax and local housing allowance if you're claiming those. Speak with your local citizens advise but don't delay informing ESA if you have been awarded the inheritance. Hope that helps.

  3. #3
    Senior Member nukecad's Avatar
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    The letters are confusing as they use the same one whether you are on IR ESA, CB ESA or both.

    So they always mention 'Your income related amount' and give a figure, but note that it also says 'would have been entitled' meaning that you may not be.

    From what you have posted about the letter it looks like you probably have CB ESA possibly with an underlying entitlement to IR ESA.
    But the lack of any disability premium(s) mentioned there says that something is stopping that IR entitlement from being paid?
    (You should probably have at least one, possibly 2, disability premiums, depending on your circumstances).

    If you could answer a couple of questions we'll have a better chance of working out just what ESA you are on (and why).

    1. Which ESA group are you in?
    2. When did you first claim ESA? Roughly should do. (Was it a transfer from Incapacity Benefit).
    3. How much ESA are you currently being paid?
    4. Do you have a partner, and if so do they work more than 24 hrs a week?
    5. If no partner then do you live alone, or with someone else?
    6. Do you already have savings or some other income than benefits? (Private pension, etc).

    The answers to those should let us work out just what you are getting now, and whether it's correct or if you should be getting more.

    Oh, one more question for about the inheritance:
    1. Is the inherintance going to be over £6,000, is it likely to be over £16,000?

    We don't need an actual amount, but that could help us give a fuller explanation if the amount is going to be between £6K and £16K.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

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  4. #4
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    Red face

    Quote Originally Posted by nukecad View Post
    The letters are confusing as they use the same one whether you are on IR ESA, CB ESA or both.

    So they always mention 'Your income related amount' and give a figure, but note that it also says 'would have been entitled' meaning that you may not be.

    From what you have posted about the letter it looks like you probably have CB ESA possibly with an underlying entitlement to IR ESA.
    But the lack of any disability premium(s) mentioned there says that something is stopping that IR entitlement from being paid?
    (You should probably have at least one, possibly 2, disability premiums, depending on your circumstances).

    If you could answer a couple of questions we'll have a better chance of working out just what ESA you are on (and why).

    1. Which ESA group are you in?
    2. When did you first claim ESA? Roughly should do. (Was it a transfer from Incapacity Benefit).
    3. How much ESA are you currently being paid?
    4. Do you have a partner, and if so do they work more than 24 hrs a week?
    5. If no partner then do you live alone, or with someone else?
    6. Do you already have savings or some other income than benefits? (Private pension, etc).

    The answers to those should let us work out just what you are getting now, and whether it's correct or if you should be getting more.

    Oh, one more question for about the inheritance:
    1. Is the inherintance going to be over £6,000, is it likely to be over £16,000?

    We don't need an actual amount, but that could help us give a fuller explanation if the amount is going to be between £6K and £16K.

    Which ESA group are you in? I am not sure - how do I find that out? I know that I am not expected to work as I can't.

    When did you first claim ESA? Roughly should do. (Was it a transfer from Incapacity Benefit). I got cancer in 2017 and have claimed ESA since then. I have had 1 major op & have 3 more to go. It's left me with limited use of my left arm and I also have severe nerve damage in my right leg, so not totally able bodied.

    How much ESA are you currently being paid? £ 111.65

    Do you have a partner, and if so do they work more than 24 hrs a week? Yes but he's self employed
    If no partner then do you live alone, or with someone else?

    Do you already have savings or some other income than benefits? (Private pension, etc). I do get a medical pension as I was retired from the police (about £3k a year) No savings (less than £1k)

    Yes the inheritance will be over £16k

    Thank you for your help so far.

  5. #5
    Senior Member nukecad's Avatar
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    That's great, and it's all good.

    As you get £111.65 that tells me that you are in the Support Group. (£73.10 Personal Allowance + £38.55 Support Group component).

    That is all Contribution Based ESA, and will remain so for as long as you are in Support Group.

    You do not have any Income Related ESA components or premiums- because you have a partner who is working (more than 24 hrs/week).

    The fact that your letter talked about 'Income Related amount' tells me that it is 'Old Style' ESA.
    That's a technicality for other circumstances and doesn't make any difference here, but it's possibly something for future reference.

    Your police pension is below the level where it would affect CB ESA, it's only private pensions above £85 a week that would do that and £3k a year is about £57/58 a week.

    The best news is that Contribution Based ESA is not affected by any savings, capital, or income.
    (Which is why you can still get it with a working partner).

    So even though you inheritance will be above £16k it will not affect your CB ESA payments at all, and your ESA will continue to be paid for as long as you are in Support Group.
    You should still inform the DWP about it once it has come into your account. (They like to know these things and it keeps them happy).

    It may affect any other Income Related benefits that you have, Housing Benefit, Working Tax Credit, Child Tax Credit, or even Universal Credit if you have any of those as well as the ESA.

    It may also affect any entitlement to Council Tax Relief if you currently get that.

    PS. You may notice that a couple of times there that I said "for as long as you are in Support Group".
    The reason for that is that if you have a reassessment and are moved to the WRAG group the CB ESA will only be paid for another 12 months and will then stop, however if you get reassessed again and put back into Support Group then it can start being paid again.
    A technicallity again, but still may be useful to know should you ever be reassessed to WRAG.
    Last edited by nukecad; 22-11-19 at 21:40.
    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.

  6. #6
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    nukecad, thank you so much
    for your detailed reply. This information is really really appreciated and has put my mind at rest. xx

  7. #7
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    Hello l inherited £60,000 the solicitor took the money from my mother estate, so none of the benefacts have had their share am on esa can only have so much money. l phoned dwp today 24/01/2020 6.30pm the gentleman l spoke to was not that worried l explained l bought a new house but had no money paid to me the solicitor had taken the funs from the estate and the reason l was moving was for my partner to move in. The Dwp man had my records in front of him and stated to phone next thursday and l still could get £200 odd ? hope this makes more sense l did state l would send a letter he stated no need

  8. #8
    Senior Member nukecad's Avatar
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    So you are saying that you had a share of your mothers estate, but that instead of receiving any money the solicitor/executor bought a house for you from the estate?
    Your also saying that none of the other benefactors has been paid anything yet from the estate?

    That's a slightly odd way of doing things, especially if the other benefiiaries have not been paid out yet, but it can be done like that.
    The other beneficiaries would probably have to agree to it being done that way.

    Normaly the executor/solicitor would release the money to you, and you would then use it to buy a house if you wished to do that.
    I guess there was a reason it was done a different way?

    I think that you are OK benefits wise.
    Whilst the money was still in the estate it was not your money, it only becomes yours when paid out.
    As long as the house purchased was for you to live in as your home then that does not count against benefits either.

    There may be a short period when it had been agreed the funds could be used this way but the house was not yet purchased where the money could technically be said to have been yours and held by the solicitor instead of the bank?
    But as long as you couldn't touch it to spend any then you should be OK.
    It all depends just how the solicitor handled it, and maybe more importantly why it was done that way.

    If there is also some money to come to you later, once probate has been completed and all the beneficiaries get paid, then that money may affect benefits depending on how much money you get.

    PS. It may have been better to have asked this in your previous thread about your inheritance rather than tacking it onto someone elses thread, but it's done now.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

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  9. #9
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    l apologise l thought l had posted on my thread am so sorry

  10. #10
    Senior Member nukecad's Avatar
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    Quote Originally Posted by lost View Post
    l apologise l thought l had posted on my thread am so sorry
    It's not a problem, but it's tidier if you can keep everything about your particular question in one place and helps other see what you have said before more easily without having to search for it.
    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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