Disregarding an Inherited Property

LEE5278

Hi,

Myself and my sister are joint executors and beneficiaries of my late Mothers estate.

My sister receives Universal Credit.

My Mother left myself and my sister a property worth approx 360k and 130k cash.

We plan to sell the house and split the proceeds along with cash, 50/50.

My question is in two parts, firstly:

My sister is currently renting and wishes to buy her own home from the proceeds of her share of the property and cash. Probate has been granted and we are actively looking to market the property in the coming weeks. Will the DWP disregard the sale proceeds of the property when reassessing my sisters benefits or would she had to have lived in the property beforehand? If the DWP don't disregard the inherited property, when would they consider this to be a capital asset; from the date of the granting of probate or the day my sister receives the properties sale proceeds into her bank account?

Secondly:

We have read that its important to inform DWP as soon as your circumstances change, in this case, my sisters. We have been working under the assumption that my sisters financial circumstances won't have changed until she has received the sale proceeds of the inherited property and share of the 130k cash into her bank account. Is our assumption correct or will the DWP consider the date of the granting of probate as the date as when my sisters financial circumstances changed?

As both myself and my sister are joint executors of the will it is us that decides when to draw down the cash from the banks to pay the remaining beneficiaries, outstanding estate bills and ultimately our respective share of the cash. Obviously, I would like to protect my sisters Universal Credit payments as long as legally possible. With this in mind could it be argued that as Executors we have a right to hold off for 6 -12 months until dispersing funds or would that be considered deprivation of assets by the DWP?

Many thanks in advance

Lauren29

The money from the sale of the house wouldn't be disregarded as your sister has not been living in the property. I don't think that as executors you can delay dispersing the cash as this will be treated as deprivation. If she has over £16,000 in capital her Universal Credit will stop. She could buy a property and then claim Universal Credit again if she had less than £16,000. Is