Inheritance

JamesH79

Good Evening,

I’m hoping for some advice please for my in laws.

my father in law receives Income Related and Contribution based ESA due to depression and anxiety. My mother in law has numerous physical health problems and receives high level PIP, including mobility component.

My father in law has recently inherited £11,800 and is due to collect a lump sum (£16,000) and weekly works pension (£85 p/wk).

A citizens advice worker kindly provided advice to them today but one major concern he raised was that my mother in law will lose her PIP, or at least the living component element.

How is that possible please if it’s not a means tested benefit? I can understand the means tested benefits being affected. As you can imagine, both are very scared of the outcome and my father in law is getting close to a breakdown.

I would be truly grateful for any advice please as all we can do is try and help them financially, but I’d like to at least say to them that my mother in law shouldn’t lose PIP.

Thanks,

James

wilko

Hello and welcome I am sure your mother will continue to receive her PIP benefits but your father will lose all his other benefits because he will be over the savings threshold, have you looked on one of the benefits site to work out what benefits you could may be entitled to claim once you have all monies banked ect.

JamesH79

Hi Wilko,

Thanks so much for the quick reply and advice. Yes I had used the site calculators but I didn’t find them that straight forward. I wasn’t concerned about my mother in laws PIP until today when the advisor said she’d lose hers except the mobility element.

if they spend sensibly, and the savings run down, would my father-in-law have to reapply to receive ESA?

He is 60 in February.

Thank you.

James

poppy123456

Hi,

As advised, PIP isn't means tested so that isn't affect.

However, the advice about them losing all of their ESA isn't correct, if he's receiving Contributions based with an Income related top up, but he needs to check exactly what it is he's claiming. If this is correct then he'll only lose the income related top up.

As soon as the money goes into his bank he'll need to ring DWP and his local council if he's claiming housing benefit and council tax reduction.

Contributions based isn't a means tested benefit and isn't affected by any savings/capital. As soon as the money goes into his bank he'll need to ring DWP and his local council if he's claiming housing benefit and council tax reduction.

If he's claiming Contributions based then a pension can affect this if the pension more than £85 per week. Just to be safe the pension also needs to be reported.

JamesH79

Hi Poppy,

Thank you ever so much, that’s really helpful too. It’s what I’d understood by and large but I really appreciate some assurance, so thank you. I’ve seen his letters and the income related ESA bit is around £103 p/wk, and Contributions bit around £27.

Overall I’m pleased my inexperience doesn’t mean I’m misunderstanding anything, so thanks again.

james

poppy123456

JamesH79 said:

Hi Poppy,

Thank you ever so much, that’s really helpful too. It’s what I’d understood by and large but I really appreciate some assurance, so thank you. I’ve seen his letters and the income related ESA bit is around £103 p/wk, and Contributions bit around £27.

Overall I’m pleased my inexperience doesn’t mean I’m misunderstanding anything, so thanks again.

james

No problem. You have that the wrong way round, if he's definitely claiming contributions based with an income related top up. The Contributions based from April 2018 is £110.75 per week. Income related top up on this is £16.40 per week. So he'll lose the £16.40 per week and keep the rest. Once he reports the changes then he'll be sent a letter with the award details.

JamesH79

Thanks Poppy.

I must’ve read his paper incorrectly and got them mixed up.

would the lump sum pension not affect the ESA contributions as well as any weekly pension exceeding £85? Sorry but just wanted to be sure my understanding is right.

Apparently my mother in law thinks that she’ll have to start paying for her prescription medication too, which could be £1,500 a year I understand. Would you know if that sounds right or not please?

Lastly, would my in laws be able to reapply for benefits again once their savings get closer to the threshold?

Thank you again.

James

poppy123456

No problem.

The contributions based part isn't means tested and the lump sum/capital/savings won't affect this. Any pension that's over £85 per week will affect the contribution based ESA 50p for every £1 over that amount.

As they won't be receiving any Income related ESA then they won't be entitled to any free prescriptions. They won't be able to apply for the NHS low income scheme because savings over £16,000 means they won't be entitled to this.

https://www.nhsbsa.nhs.uk/nhs-low-income-scheme

Yes, once the money falls below £16,000 they will be able to contact DWP to have the Income related top up added. Do be aware of the deprivation of capital rules when applying for means tested benefits. DWP will most likely check this when the re-apply. Savings over £6,000 will affect means tested benefits £1 for every £250 over that amount.

JamesH79

Thanks again Poppy.

The pension can be deferred but I understand that you shouldn’t do that if you are in receipt of benefits, which I can understand. Is he therefore best to take his pension now?

my mother in laws disability has worsened over the years and she cannot go out without help so I think she’s now eligible on health grounds to seek free prescriptions. I’ll help her on that. She has around 10 types of prescription so it would be around £1,000 a year if she had to pay.

Thanks again.

JamesH79

Sorry for the confusion Poppy, but my wife also thinks her Dad gets the bulk of ESA as Income Revenue, with the Contribution as top up. She says he used to get Incapacity Benefit before it got moved over to ESA.

When he has to re-apply, will DWP have to re-assess his medical condition? He is very much worse than ever, which although may support his claim, does mean he’s very stressed over the whole thing. Would you know please or is it more a paper exercise?

he and his wife did work for many years before their health issues took hold in their late forties, early fifties. 

Thank you,

James

poppy123456

As i previously advised he's claiming Contributions based with an income related top up. There's no such thing as income revenue benefits.

I'm afraid i won't be able to advise anything about deferring the pension, he'll need to get expert advice regarding that.

Only certain medical conditions qualify for a medical exemption certificate. Not being able to go out alone won't qualify her. Here's a link for conditions that qualify.

https://www.nhsbsa.nhs.uk/exemption-certificates/medical-exemption-certificates

Once the savings fall below £16,000 he won't need another face to face assessment for this, however for ESA even when claiming Contributions based they can re-assess him at anytime.  He will most likely need to send bank statements.

JamesH79

Thanks again for all your help.

Apparently he does have to have a new face to face assessment anyway, so he’s getting the form filled in with that.

Last thing to mention (and I am sorry for the numerous questions), but is the government changing the way benefits are calculated and moving people over to universal credit? Is that something we need to be concerned about as the citizens advice person suggested he probably wouldn’t get back on ESA even if he got below the savings threshold?

thanks