ESA & Inheritance

Pa1n

Hi all, I’m hoping to get some help please.

My late Dad passed away with cancer and I’m still grieving as he was my Mum AND Dad because my Mum left us both (me & my younger brother) when I was 3 years old.

OK so my Dad made a will he had 2 properties one being his home and the other he purchased which I live in which as been my home for the last 15 years, they’re both mortgage free as he paid them off when he retired.
My Dad’s  house that I live in he left solely to me, and his own house he split it 50% 50% between me and my brother favouring my situation being disabled with little, and my brother who does very well.
My question is I’m on income related ESA and Higher Rate PIP, I know PIP wouldn’t come into it BUT the house I live in needs a lot of work inside and my Dads home which is split between me and my brother also needs a full refurb from top to bottom, so my plan is to sell the one I’m currently living in and using the 50% off the sale of the other one and buying 1 bigger house which is all refurbed and disabled equipped, I wouldn’t have much money left because I’d be putting the sale of a property and half into 1 complete  liveable one, but would I still be able to receive my ESA ? (Probate hasn’t been done yet), they’re valued at around £100,000 each so my plan would be to buy one for the £150,000 Ish, my brother said if I did see one and it was over my budget he would let me use some of his 50% also, would that be ok or would that be classed as income if he gave me some money which would be going towards my new home ?

Any help would be much appreciated, I’m struggling at the moment in my current home with the stairs and bathroom and it’s falling to bits basically and it’s getting me down, I’m already suffering with chronic pain and the loss of my Dad so I just need to try and get more comfortable as my illness is worsening week by week.

kind Regards 

calcotti

Is your ESA entirely income based or is it a mix of contribution based and income based. If you don't know, you need to find out.

If some is contribution based then owning the property will not affect that part (£114.10/week).

For income based ESA.
The house you live in is ignored. If you sell it the proceeds of that sale can be ignored for six months (which can be extended if a Decision Maker agrees it is reasonable so to do) i they are to be used to purchase another property.

For the second property the value of your share is taken into account as capital as soon as you receive the inheritance. You can get that value disregarded if you immediately put the property up for sale. The disregard is for six months (which can be extended if a Decision Maker agrees it is reasonable so to do). However at some point you will receive that money and it will be taken into account. That would end income based benefits.

Once you bought your new property if your capital is below £16,000 you can reclaim income based benefits (either getting income based ESA added back if you are still getting contribution based ESA or claiming UC).

If you are able to put both properties on the market and complete the sales on the same day as purchasing the new house you could possibly avoid the income based ESA ending but that may not be possible. It would seem more likely that you would sell the second property first and bank the money ready for completion of the sale of the primary property. There will be no disregard of the money from the sale of the second property because it is from the sale of a property other than the one you live in.

Your brother gifting you some money would be treated as capital if you kept it but if it was used as soon as received it makes no difference.

Alex_Alumni

Hello @Pa1n and welcome to the community. Thanks for posting this morning, I hope calcotti has been able to help answer your queries around ESA.

I'm really sorry to hear about your dad, and I hope you and your brother can help support each other during this time. Cruse can offer bereavement support if you feel like it would help, as I'm sure the grief must still be quite raw at the moment. 

Have you been able to speak to your GP about how what's happened is impacting on your chronic pain? It might be worth chatting to your doctor if you feel as though you need a little extra support for managing your condition.

If you feel we can help with anything, or if you have any further queries around ESA, then please do ask and we'll do what we can Take care today, and make sure to take breaks if you need to.

Alex

Pa1n

calcotti said:

Is your ESA entirely income based or is it a mix of contribution based and income based. If you don't know, you need to find out.

If some is contribution based then owning the property will not affect that part (£114.10/week).

For income based ESA.
The house you live in is ignored. If you sell it the proceeds of that sale can be ignored for six months (which can be extended if a Decision Maker agrees it is reasonable so to do) i they are to be used to purchase another property.

For the second property the value of your share is taken into account as capital as soon as you receive the inheritance. You can get that value disregarded if you immediately put the property up for sale. The disregard is for six months (which can be extended if a Decision Maker agrees it is reasonable so to do). However at some point you will receive that money and it will be taken into account. That would end income based benefits.

Once you bought your new property if your capital is below £16,000 you can reclaim income based benefits (either getting income based ESA added back if you are still getting contribution based ESA or claiming UC).

If you are able to put both properties on the market and complete the sales on the same day as purchasing the new house you could possibly avoid the income based ESA ending but that may not be possible. It would seem more likely that you would sell the second property first and bank the money ready for completion of the sale of the primary property. There will be no disregard of the money from the sale of the second property because it is from the sale of a property other than the one you live in.

Your brother gifting you some money would be treated as capital if you kept it but if it was used as soon as received it makes no difference.

Thank you very much Calcotti for your speedy informative reply, it’s very much appreciated.

Is it really possible and achievable what you wrote ?, that would be really good !!, I know I would probably have to sell the houses a little cheaper for a quick sale for that to be a reality, and to sign them both over some how on the same day, and not be to picky buying mine but it’s very tight incase of a delay in paperwork somewhere do you think ? 🤔 It take me half a day to have a bath and get changed ! 🙉 

“ If you are able to put both properties on the market and complete the sales on the same day as purchasing the new house you could possibly avoid the income based ESA ending but that may not be possible “ 

Wow I would love to do that, that would be the end of my worries !

I’m the Executor, and this as all been up in the air for 3 years with me not applying for PROBATE yet !, I’m to scared.

Since my Dad died, weeks months and years have now passed because I don’t know what to do for the best, because if I do buy a new home I’ll have just my PIP money to pay bills and live on which is going to be almost impossible, and then I could potentially get in debt and risk my home. 

 Calcotti all we want to do is sell Dad’s two rundown properties, one being my current home and the other my Dads home because they both need re-wires new bathrooms and kitchens, I’ve got bowls here and there collecting water from leaks, and damaged ceilings from leaks which is leaving them smelling a bit damp/musky in both properties, and I’ve just not got the energy to sort them out nor the brain power, my Dad never really bothered maintaining or decorating due to him working all hours and bringing up two boys bless him, and I think sometimes the situation could’ve been a little different with say a motherly figure around because she would have demanded for the maintenance to be completed no doubt, but if me or my brother mentioned anything about fixing the place up he wouldn’t listen and would change the subject, or as he would say, it fell on deaf ears 🙈

I think the less time consuming, and the best all round option would be, was if I could raise the money from the 2 sales to buy a house or a Bungalow that doesn’t need any work doing, that’s got more floor space for a wheelchair/Zimmer, and a bigger bathroom for a walk in shower with a tanked floor, and all upgraded to disabled friendly along with grab rails lowered sockets etc.

Calcotti what would you do in my shoes ??, I’m at my wits end as I’ve no family or support I’ve only a brother and nobody to guide me, I did used to highly rely on my Dad when it came to paperwork and complicated words letters etc but obviously he was taken away from us, and I just want an end to it all because my mental state is really really declining.

I’ve included my recent ESA letter below  I don’t know if you can tell if it’s income or contributed as you said ?

Any help would be much appreciated, if you could please simplify it as much as possible, so I can try to understand and take it in, I know some of the words the decision makers use like disregard throw me , I think that means they don’t bother/or doesn’t matter if I’m right ?, ahh dummies guide is the word I was looking for please Calcotti because last week I was diagnosed with an overactive thyroid and my mind and concentration is all over the place, along with all my strong pain medications.

Sorry for all the ear bending and no rush to reply because I know it’s quite lon, I just hope and pray it can be resolved asap.🤞 🙏🏽 

Thanks again Calcotti.

Kind Regards Pa1n.

Pa1n

Sorry forgot to post my recent ESA form.

Pa1n

Alex_Scope said:

Hello @Pa1n and welcome to the community. Thanks for posting this morning, I hope calcotti has been able to help answer your queries around ESA.

I'm really sorry to hear about your dad, and I hope you and your brother can help support each other during this time. Cruse can offer bereavement support if you feel like it would help, as I'm sure the grief must still be quite raw at the moment. 

Have you been able to speak to your GP about how what's happened is impacting on your chronic pain? It might be worth chatting to your doctor if you feel as though you need a little extra support for managing your condition.

If you feel we can help with anything, or if you have any further queries around ESA, then please do ask and we'll do what we can Take care today, and make sure to take breaks if you need to.

Alex

Thanks Alex, I’m just learning to navigate your site, I’ve found it excellent and very informative.
Its just nice to talk sometimes and express yourself, I think I’ll be using it more, hopefully I’ll be able to help somebody.

Take care Alex, and thanks again for your expertise. 🙏🏽 

Alex_Alumni

Thank you @Pa1n that's lovely feedback and positive to hear. Having members of the community help each other is exactly what we love to see!  

How are things going today?