Inheritance

katenlucad62

Hi my mother in law has left a house in her will we’ve decided to move in as it’s beneficial for my disabilities apart from housing benefit I was told I wouldn’t lose any benefits by cizitens advice is this true I just want more assurance before I decid thank you everybody ⭐️💎

poppy123456

Have you already moved into the house? If not is the house actually yours now?

katenlucad62

No we haven’t moved in yet ,but we are going to ,my husband and sister have agreed she gets money so we’ll take the house thank you for replying ⭐️

calcotti

You answer is not clear. Do you own the house already or are you going to moving in as soon as you do own it?

Adrian_Scope

Hello @katenlucad62. I'm sorry to hear about your mother-in-law's passing.

The reason calcotti and poppy123456 are asking about your current ownership of the house and whether you plan to live in it as soon as you have possession is because, in general, if you own a property that you don't reside in, it will usually be considered as savings or capital for benefit purposes. However, there may be exceptions that apply.

To provide you with accurate advice, we would require additional information about your specific situation.

MW123

Hello katenlucad62

I'm sorry to hear about the passing of your mother-in-law. Based on your current situation, it appears that you are currently receiving housing benefit for the rental property you're living in as you have acknowledged you will lose this benefit in your post.   However, once you move into your inherited property, you will no longer be eligible for housing benefit. Nevertheless, if you meet the means-tested criteria, you should still be able to apply for council tax benefit and continue receiving the benefits you currently receive.

poppy123456

MW123 said:

Hello katenlucad62

I'm sorry to hear about the passing of your mother-in-law. Based on your current situation, it appears that you are currently receiving housing benefit for the rental property you're living in as you have acknowledged you will lose this benefit in your post.   However, once you move into your inherited property, you will no longer be eligible for housing benefit. Nevertheless, if you meet the means-tested criteria, you should still be able to apply for council tax benefit and continue receiving the benefits you currently receive.

They are aware that their housing benefit will stop once they move. What isn't clear is whether they own the property now, if they do then this could end all means tested benefits if they are not currently living in the house.

katenlucad62

Hi thank you for your replies we have not moved into property yet we did actually inherit the house as it was just assumed that one of us would want to move and the other have money ,my sister in law decided she’d have the money ,and with my disability I’d move Into property there was no naming in the will just for us to decide ,so I’m on income based esa support group will these benefits stop as cizitens advice told me as I knew I’d lose housing benefit,I’d have to see about council tax ,but they didn’t think I’d lose that due to esa and the house didn’t contribute to savings and as long as I didn’t try to sell it after 6 month I’d be ok ⭐️

katenlucad62

Also we haven’t singed anything or applied for land registry ⭐️

MW123

Hello katenlucad62

I am fully qualified solicitor in conveyancing and specialise in lease law and land disputes.  I can confirm the following. 

A beneficiary of a will doesn't hold the property until they have a grant of probate. A properly written Will should make clear what each beneficiary is to receive. 

As soon as you become aware of your inheritance, if you are receiving benefits  you should inform the Department for Work and Pension, and any other relevant benefits department. 

If you've inherited a property and are planning to live in it as your primary residence, you don't need to worry about it affecting your benefits right away. For the first six months, the value of the property won't be counted, which gives you enough time to move out of your rented home without any changes to your benefits.

I assume from your posts that you currently rent the property you live in now.  However, if you own the property you are presently living in then any means tested benefits will be affected.

katenlucad62

Himw123 no we didn’t inherit the house ,there is a will but was not specific who would get the house and who got the money my sister in law is the probate she was going to sell the house then half the money between her and her brother but he decided the house would be beneficial to me as I’m disabled I asked cizatens  advice they got legal advice and said as long as I moved into property and not sell it after 6 months the only change would be as I knew housing benefit and I’d have to sort council tax,so are you saying my benefits can be affected after 6 months ,as they said nothing would change thank you for your reply 💎⭐️

MW123

Hello katenlucad62 

It appears to me that the advice received from the Citizens Advice Bureau was not related to DWP benefits, but rather to the minimum ownership period of six months when considering the sale of the property in order to potentially mitigate or decrease capital gains tax. CGT is a tax imposed on the profit gained from the sale of an appreciating asset, such as a property. By owning the property for a minimum of six months, you may be eligible for specific tax exemptions or reliefs, such as Principal Private Residence Relief, which can assist in reducing or eliminating CGT obligations. However, it is important to note that tax laws and regulations are intricate and subject to change, hence it is advisable to seek guidance from a qualified tax professional or accountant. 

Although you haven't officially received the house inheritance yet, you are aware that you are included as one of the beneficiaries. I strongly recommend that you inform the DWP in written format, clearly outlining the pertinent details. It is worth noting that for the initial six-month period, the value of the inherited property will not be taken into consideration, affording you sufficient time to vacate your current rented residence without any alterations to your existing benefits. However, exceeding this six-month timeframe will result in a potential impact on your benefits. 

Regarding the property, it is worth noting that your mother-in-law's building insurance on the premises may have been terminated upon her passing. It is highly recommended that you verify, if you haven't already, whether the building and its contents are adequately insured. It is possible that the insurance company may require you to conduct regular inspections of the property every 30 days, in accordance with their policies regarding unoccupied premises.

 

katenlucad62

So do you mean after living in the property my benefits could stop ,as when I phoned dwp they said as long as we live in the property and do not stay for monetary gain it would not affect my benefits as we’d be living there and there for it would not be classed as savings etc ⭐️

MW123

Given your transition from renting to ownership, it is apparent that you won't qualify for housing benefit aimed at covering rent expenses.  However, you will still be eligible for the same benefits you were receiving before.  Regards MW

katenlucad62

Thank you so much MW you have been a great help and put my mind at rest take care and all the best 💎⭐️

MW123

Wishing you the very best, and I want to emphasise the importance of thoroughly reviewing your building and contents insurance, especially if you haven't done so already. 

katenlucad62

MW I will do I really appreciate your advice you’ve been a help to me thank you so much you take care and keep fighting for our rights 💎⭐️

katenlucad62

Hi everyone again I’m still undecided wether to move into my mother in laws house I have lived in my house 61 years and wondering if it’s worth the hassle I’ve used scope for advice once and boy are people helpful ⭐️💎

Hannah_Alumni

@katenlucad62 I think the best thing to do is to make a list of the pros and cons. Then look at what actions are needed for each and that will hopefully help you with deciding  

poppy123456

If you decide not to move into the house then any inheritance money you receive that's more than £16,000 will end all means tested benefits.

For every £250 or part there of over £6,000 there's a £1 per week deduction in your benefits. For council tax reduction all local Authorities have their own rules and some have a maximum savings limit of £6,000 before entitlement to CTR ends.

katenlucad62

Thank you poppy ⭐️💎