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Inheritence and ESA CB
- palemazy
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5 years 4 months ago #242312 by palemazy
Inheritence and ESA CB was created by palemazy
Hello, I wonder if anyone can help. My Father is considering giving me some early inheritance so that my partner and I can buy a suitable adapted property (we are both disabled and live in an unsuitable property) to live in. I am on ESA CB and my partner is on ESA IB, the early inheritance which I guess would be deemed as a gift would not affect my ESA CB but would it affect my partners IB ESA? Thanks
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- Gordon
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5 years 4 months ago #242319 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Inheritence and ESA CB
layla
Your ESA(CB) will not be affected by any money that you receive but your partner's ESA(IR) could be reduced or even stopped depending on the amount you receive, see
Asset and savings rule for ESA(IR)
Purchasing a home for you to live in should not be considered as Deprivation of Capital but you should be aware that there is a Upper Tier Tribunal Decision in regard to purchasing a property where the claimant was found to have Deprived themselves as the purchase was found to have been made with the intent of reclaiming a benefit that they would not have otherwise been entitled to.
I would not expect this to be applied but if it is then it will help if you are able to show that you are receiving less benefit, for example; Housing Benefit, than you were before.
If your partners ESA(IR) is stopped then a new claim will be required, they will have to claim Universal Credit unless they are/were receiving the Severe Disability Premium as part of their ESA, this is listed as "money because you are severely disabled" on the ESA Entitlement letters.
The easiest way to avoid problems is for your father to make the purchase and then transfer the house to your name, that way you never have any control of the money.
Gordon
Your ESA(CB) will not be affected by any money that you receive but your partner's ESA(IR) could be reduced or even stopped depending on the amount you receive, see
Asset and savings rule for ESA(IR)
Purchasing a home for you to live in should not be considered as Deprivation of Capital but you should be aware that there is a Upper Tier Tribunal Decision in regard to purchasing a property where the claimant was found to have Deprived themselves as the purchase was found to have been made with the intent of reclaiming a benefit that they would not have otherwise been entitled to.
I would not expect this to be applied but if it is then it will help if you are able to show that you are receiving less benefit, for example; Housing Benefit, than you were before.
If your partners ESA(IR) is stopped then a new claim will be required, they will have to claim Universal Credit unless they are/were receiving the Severe Disability Premium as part of their ESA, this is listed as "money because you are severely disabled" on the ESA Entitlement letters.
The easiest way to avoid problems is for your father to make the purchase and then transfer the house to your name, that way you never have any control of the money.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- palemazy
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5 years 4 months ago #242328 by palemazy
Replied by palemazy on topic Inheritence and ESA CB
Hi Gordon,
Thank you for your mail.
I am not sure how much he would have to put into a property but I am pretty sure it would only be enough for a shared ownership. I have been looking into the HOLD scheme (possibly finding a suitable property on the open market that our housing association purchase and then sell a share to us) but i am not sure if my Dad could buy a shared ownership property for me under HOLD. Do you have much knowledge of how this scheme works as there is not comprehensive information on the website.
Also I have been looking into shared ownership when purchasing from housing associations and it seems that almost all these properties are leasehold and I suspect my Father would have some issues with this arrangement. Best, Layla
Thank you for your mail.
I am not sure how much he would have to put into a property but I am pretty sure it would only be enough for a shared ownership. I have been looking into the HOLD scheme (possibly finding a suitable property on the open market that our housing association purchase and then sell a share to us) but i am not sure if my Dad could buy a shared ownership property for me under HOLD. Do you have much knowledge of how this scheme works as there is not comprehensive information on the website.
Also I have been looking into shared ownership when purchasing from housing associations and it seems that almost all these properties are leasehold and I suspect my Father would have some issues with this arrangement. Best, Layla
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- Gordon
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5 years 4 months ago #242337 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Inheritence and ESA CB
Layla
I'm sorry but I have no knowledge of shared ownership schemes, I would contact a supplier directly to understand your options.
Gordon
I'm sorry but I have no knowledge of shared ownership schemes, I would contact a supplier directly to understand your options.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Gary
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5 years 4 months ago #242368 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Inheritence and ESA CB
Hi Layla
I have dealt with shared owners for many years, there is nothing shared about a shared ownership scheme apart from the name. You would be liable for all the repairs to the property even though you may pay rent on the property. There are also many restrictions on what you can and cannot do to the property such as sub let/take in lodgers and if you try to sell the property, again there are restrictions.
You need to seek full legal advice from a specialist who knows about shared ownership before going down that route.
hoa.org.uk/advice/guides-for-homeowners/...at-to-watch-out-for/
www.which.co.uk/money/mortgages-and-prop...nership-awjs50y9dbf6
Gary
I have dealt with shared owners for many years, there is nothing shared about a shared ownership scheme apart from the name. You would be liable for all the repairs to the property even though you may pay rent on the property. There are also many restrictions on what you can and cannot do to the property such as sub let/take in lodgers and if you try to sell the property, again there are restrictions.
You need to seek full legal advice from a specialist who knows about shared ownership before going down that route.
hoa.org.uk/advice/guides-for-homeowners/...at-to-watch-out-for/
www.which.co.uk/money/mortgages-and-prop...nership-awjs50y9dbf6
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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