ESA - Effected by inheritance?

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Merlin84
Merlin84 Community member Posts: 3 Listener
A close relative receives ESA and PIP (higher rate).

He is about to receive an income (rental) due to inheriting a property which is being let.

I am trying to ascertain whether he will lose all or some of his ESA and other associated benefits:. 
warm home discount 
car tax
eye wear discount
dental treatment discount
council tax discount
bus pass 
green waste collection 
free prescriptions

The ESA is old style - it dates back many years. A letter outlining is entitlement states: "“You are entitled to both contribution based and income related employment and support allowance. This assessment is based on how much the law says you bees to live on and your national insurance contribution record."

The concern is that the rental income will be less than the loss of benefits and eventually he would have to sell the property.

Answers and advice welcome please.

Comments

  • calcotti
    calcotti Community member Posts: 10,005 Championing
    edited April 2021
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    The income from the rental is not the issue.

    The second property is a capital asset and if the value, combined with any other existing savings, is more than £16,000 then he is no longer entitled to any means tested benefits.
    The PIP is not affected. 
    The contribution based part of ESA is not affected (£114.10/week if in the Support group).
    There will no entitlement to income based ESA (or Housing Benefit and Council Tax Reduction if relevant).
    There will also be no entitlement to the passport benefits you list - because entitlement to these is based on the income based ESA.

    When they inherit the property if they take immediate steps to sell the property it can be disregarded until the sale is complete - but obviously the proceeds will lead to the same end result.
  • Merlin84
    Merlin84 Community member Posts: 3 Listener
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    Thank you for the comments. 

    On reflection I should have made clear that the value of the property is bequeathed to two individuals. The other person (not the ESA claimant)  doesnt wish to sell given the direction of property values but wishes to hold on for (probably) up to 12 months. The other person is the one who would be managing the property. 
  • calcotti
    calcotti Community member Posts: 10,005 Championing
    edited April 2021
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    Would the other person be willing and able to buy them out?
  • calcotti
    calcotti Community member Posts: 10,005 Championing
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    Hmm, not quite so straightforward methinks. 
    Mike, thanks for going through the separate items. I intended to do so, got distracted and finished in haste. Would have been better if I had deleted my post rather than give misleading information.
  • Merlin84
    Merlin84 Community member Posts: 3 Listener
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    No the other person hasnt got the means to buy them out. The other person is trying to sell their house so they can have the inherited property and pay off the ESA person but that still means cash going to the esa person.