- Posts: 6
- Forum
- Members forums
- ESA, PIP, UC and DLA Queries and Results
- Inheriting and buying a house on UC/PIP
× Members
Inheriting and buying a house on UC/PIP
- k_dowell66
- Topic Author
- Offline
Less More
1 day 19 hours ago #309593 by k_dowell66
Inheriting and buying a house on UC/PIP was created by k_dowell66
I am currently on UC and PIP with UC transitional protection for the severe disability premium (I was transfered over from income-related ESA). Following the death of my mother I am soon to inherit some money and am looking to buy my first home outright (I am currently in council housing). I understand that I am allowed to buy my first home with the inheritance and not lose benefits if I remain under the savings threshold butalthough I know I'm in a very fortunate position it feels very stressful and I have been in tears over it. I'm going to really feel it if I lose the transitional protection. I have severe ME. My questions: 1. Can I buy a home and not lose my transitional protection if I remain under the savings threshold as I'm assuming I'll lose the benefit as soon as I get the money from the sale of my mum's house and then have to reapply once I've bought somewhere? 2. At what point in the inheritance do I need to tell the DWP? We have probate so officially I have access to half of my mum's savings but I want to wait until the house sale so that I can get the money all in one go. 3. What sort of evidence do the DWP ask for with regards to the inheritance and house purchase? 4. If I find a property that is a bit over half of the inheritance my brother will pay me the extra - will that affect things? I appreciate this is a complex question and would happily pay someone experienced to talk me through it. I'm finding it so stressful. I realise also that if I buy a property that leaves me with over 7k in savings the question becomes a bit null and void because I will lose the transitional protection when I reapply if my savings fall back under the threshold.
Please Log in or Create an account to join the conversation.
- David
- Away
Less More
- Posts: 2924
1 day 7 hours ago #309599 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Inheriting and buying a house on UC/PIP
Hi k_dowell66
You mention your brother so I assume he is the sole executor in your mother's will. When he has settled any debts of your mother's estate and has distributed the assets that is when you will take possession of your inheritance. Then if the total value of your inheritance is over £16,000 all your means tested Benefits will be closed. However your PIP will stay in payment unaffected.
After you have bought a new home you can apply for means tested Benefits again provided you have less than £16000 in capital. However the DWP will investigate as to whether it was reasonable for you to buy that particular property.
David
You mention your brother so I assume he is the sole executor in your mother's will. When he has settled any debts of your mother's estate and has distributed the assets that is when you will take possession of your inheritance. Then if the total value of your inheritance is over £16,000 all your means tested Benefits will be closed. However your PIP will stay in payment unaffected.
After you have bought a new home you can apply for means tested Benefits again provided you have less than £16000 in capital. However the DWP will investigate as to whether it was reasonable for you to buy that particular property.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: k_dowell66, Wendy Woo
Please Log in or Create an account to join the conversation.
- k_dowell66
- Topic Author
- Offline
Less More
- Posts: 6
1 day 4 hours ago #309602 by k_dowell66
Replied by k_dowell66 on topic Inheriting and buying a house on UC/PIP
Thankyou David, both me and my brother are executors - we inherit the money 50/50. So am I going to lose the severe disability premium protection whatever i do? I am looking to buy a 2 bed property so that I have somewhere where a guest or carer can stay - would that be deemed unreasonable? We currently have access to about 45k each and the will inherit a further 280k from the sale of my mum's home but local property is expensive. I cannot afford to live just on PIP once a property is bought.
Please Log in or Create an account to join the conversation.
- David
- Away
Less More
- Posts: 2924
1 day 1 hour ago #309605 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Inheriting and buying a house on UC/PIP
Hi k_dowell66
You need to distinguish between yourself as an individual and as an executor. That is why most executors have a separate bank account for the administration of the proceeds of the deceased estate. However once over £16000 is credited to your personal bank account then you will lose your means tested Benefits. In addition once the deed of probate has been granted and you have as you say potential access to £45,000 then you should inform the DWP and I expect your means tested Benefits will end.
David
You need to distinguish between yourself as an individual and as an executor. That is why most executors have a separate bank account for the administration of the proceeds of the deceased estate. However once over £16000 is credited to your personal bank account then you will lose your means tested Benefits. In addition once the deed of probate has been granted and you have as you say potential access to £45,000 then you should inform the DWP and I expect your means tested Benefits will end.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Please Log in or Create an account to join the conversation.
Moderators: Gordon, latetrain, BIS, Catherine, Chris, David, Keely