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Hi, my name is Viscount! Will inheriting a house and life insurance affect my benefits?

Viscount

1st post… Hello all.

I live in a large detached property (which is in dis-repair) with my elderly father. We have lived together in this house since 1992 (when both of us were working!) The house is owned by him and has done so since day 1. He is now in her late 80s and in poor health, he probably will not see Christmas. I am single, under State Pension age, worked all my life and have full NI contributions) and have been on PIP (standard rate for care and enhanced for mobility) and income related ESA for many years due to numerous health issues including a crumbling spine (which despite the DWP's irrational thought process, is degenerative and long before I get my pension, I am going to need a lot of help and care).

I know I will have to inform the DWP of a change to circumstances - but can you help me with some questions please -
1) when my father dies - I will inherit the house I live in. Will that affect my benefits or be a 'disregarded property'?
2) when my father dies - I will inherit his life insurance money and a small amount of his savings (which I believe will total over £25k. I don't know the full amount. I assume this will affect my ESA benefit?
3) with this extra money, I will need to pay for my father's funeral, settling his affairs and probate etc and will need to decorate and make repairs to the house to ultimately sell it as I want to move to a small bungalow more suitable to my health issues. So even though the money will be practically gone in months (not stashed away as savings) will the DWP penalise me long-term (ie: stop my ESA completely) for having in their view "excess savings" in the short-term. Will they then expect me to submit a new claim when the money is gone? In my negative experience of the DWP, they obviously will as I've found them callous, cold and unable to have any compassion or understanding - but I'd be grateful for your views.

Does this make sense? I don't want to defraud or lie to the DWP, I of course will tell the DWP everything, but I am not rich, in fact I have no savings whatsoever and my only chance of getting through the next few years will rest on the sale of this property (hence why I need to bring it up to decorative standards). It was a struggle claiming ESA and PIP in the first place, especially the ridiculous charade of their "assessments" so I really do not want to have to go through all that again, just for a short-term cash increase!!!

Thank you.

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Comments

Kimi87

1)The house you live in is disregarded in terms of calculating capital.

2) You mention working previously for a long time, are you sure all your ESA is IR?

I'd say your ESA is probably Contributions Based with a potential IR top up (disability premium). Lots of people think that their ESA is one thing but turns out they were mistaken.

Unfortunately ESA letters are very difficult to understand, the only way to know for sure is to ring them and ask.

If you are CB&IR ESA then CB is not effected at all by capital.

Only the IR ESA would be effected by what you have left after your father's estate is settled (and that would exclude anything you choose to do on your house). This might end but your CB ESA would continue.

I'd also say decorating a house prior to sale might be waste of money and your energy - buyers tend to come in an re decorate to their own taste.

Viscount

Kimmy87 - thank you for your reply. You've given me some comfort as I have had very bad experiences with the DWP, when they have lied and mucked up and don't trust them!!!!

re: the house - thanks, that's what I hoped!
ESA - yes I'm sure you are right, I get confused with all the jargon. I switch off a lot when dealing with the DWP - I avoid contacting them at all costs, as I just get frustrated with the robots ("computer says no" attitude)!! Must be CB ESA. I worked for nearly 30yrs as a civil servant, until I became ill, paying into the Civil Service Final Salary Pension.

When I say decorating - I'm only talking about a lick of paint here and there, minor repairs and basic cosmetic decoration… I won't be doing it myself, but I will have to "tart the place up" a little to make it presentable for the estate agent photos, nothing major! If I was staying here - I'd have new adapted kitchen and bathrooms etc, but I'm only staying to be my father's carer (while I still can) literally until he dies.

Kimi87

As I said you could be on both CB & IR ESA. Many people who get CB qualify for an IR top up as well.