Employment and Support Allowance (ESA)
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Inheritance Effects ESA ?

Richard74Richard74 Member Posts: 5 Listener
Hello Everyone 

I'm currently claiming income related ESA my father passed away in January he has left me a bungalow in trust i do not own the property but i am soul beneficiary so i would receive the rental income of between £800-£1000 a month  also the sum of £20.000 cash that is currently in probate will my ESA stop completely ? Thank you  
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Replies

  • woodbinewoodbine Community Co-Production Group Posts: 3,775 Disability Gamechanger
    hi @Richard74 and welcome to scope, if your ESA is cont.based topped up with I.R then you will keep the cont. part, other means tested benefits will also be affected.
    my advice is given freely and is correct to the best of my knowledge.
  • Richard74Richard74 Member Posts: 5 Listener
    hi @woodbine Thank you for your reply so i may still get something but reduced ?
  • woodbinewoodbine Community Co-Production Group Posts: 3,775 Disability Gamechanger
    Yes its possible, you will need to dig out your recent ESA payment update and check if you get C.B topped up with I.R in which case you would get the C.B. 
    Are you in the support group?
    my advice is given freely and is correct to the best of my knowledge.
  • chiariedschiarieds Community Co-Production Group Posts: 8,018 Disability Gamechanger
    Hello @Richard74 - & welcome to the community. Have you managed to look into the above?
  • Richard74Richard74 Member Posts: 5 Listener
    @woodbine @chiarieds thanks for your help I am in the support group I receive £260 every 2 weeks I’ve been in there for 6 years as I have chrons disease I do 14 hours permitted work a week . 
  • chiariedschiarieds Community Co-Production Group Posts: 8,018 Disability Gamechanger
    @Richard74 - This sounds like your ESA is income-related from what you've said with support group paying £228.20 every 2 weeks + the enhanced disability premium of £34.40 giving now £262.60. Is it that amount?
  • Richard74Richard74 Member Posts: 5 Listener
    @chiarieds yes that’s correct 
  • calcotticalcotti Member Posts: 1,215 Pioneering
    As advised by woodbine you need to check whether the ESA is entirely income based or is contribution based with an income based top up. You will also need to inform your local authority if you are claiming Council Tax Reduction and/or Housing Benefit.

    Whether or not the bungalow counts as capital will depend on the nature of the trust. The rental income is treated as an increase in capital, not as income.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • Richard74Richard74 Member Posts: 5 Listener
    @calcotti @woodbine The trust is not yet set up that could take months . the letter from the dwp is 

    your living expenses £74.35
    extra money because of the disability income guarantee £17.10
    Limited capability for work addition 
    extra money because you are in the support group  £39.20
    which gives a total income-related amount £130.65

    income & benefits 
    no income will be taken off your ESA 
    your income related amount is £130.65 less total income of 0.00
    so your income related entitlement is   £130.65
    that is the only benefit i claim 
  • calcotticalcotti Member Posts: 1,215 Pioneering
    It appears to be entirely income based 
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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