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ESA and inheritance

habbiner

Due to health issues, I live with my parents. I claim income based ESA and nothing else. Last year, my Dad died, without leaving a will. I am finally getting to the stage where the estate is getting sorted. My inheritance would be just over £18,000. There is no money in the estate, just the house. So, my inheritance would be a share of the house that I live in. That being the case - will that effect my benefit or would it be considered to be disregarded property?

Do I need to inform DWP if it has no effect on my benefit?

Many thanks for any help that anyone may be able to offer.

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Comments

Hannah_Alumni

Hello @habbiner

My condolences on the loss of your dad. I hope you and your loved ones are getting any support needed.

Scope has a page on Inheritance and Benefits. It says;

Inheriting a property like a flat or house may count towards your savings. It’s likely that it will take you over the £16,000 savings limit and affect any means-tested benefits you receive. This includes Housing Benefit.

There are some situations when the value of a property does not count as savings. This is called ‘disregarded property’.

Any property that you live in as your main home will not count towards your savings.

You will need to inform the DWP if your savings become;

between £6,000 and £16,000, you lose some of your benefit payment
more than £16,000, you’re not eligible

Every £250 over £6,000 counts as if you had:

£4.35 of monthly income for Universal Credit
£1 of weekly income for Income-based JSA, Income-related ESA, Income Support and Housing Benefit

calcotti

What is going to happen when the estate is resolved? If you will still be living in the house then the value which now belongs to you will be ignored.

habbiner

Thank you both for taking the time and trouble to read and reply to my question and for your kind words.

So, once the issues with the estate have been dealt with, I will continue to live in the house, with my Mum. From what you have both said, it looks my share in the house won't count as savings and so will not affect my benefit.

calcotti

Who will own the house?

habbiner

My Mum will own the house.

calcotti

If you are getting money and will not have a part share of the house then the money will be taken into account as capital. It will not be disregarded.

habbiner

Thank you.

My share of the estate is approximately £18,000 BUT there is no money in the estate - only the house. So, I will own an £18,000 share in the house and that is all.

poppy123456

You said your mum owns the house but that can’t be right if you have an £18,000 share of it. As you live in the house then it’s disregarded.

habbiner

Apologies.
My Mum will own the majority of the house, apart from my £18,000 share.

calcotti

habbiner said:

Apologies.
My Mum will own the majority of the house, apart from my £18,000 share.

That’s why I asked who will own the house. If the house will now be in joint names with your mum and you then the value of your share of the house will be ignored because you are in living in it.