I've inherited my son's 2 pension pots. I'm worried it'll affect my ESA

ros151

Hi I’m new to the group. I am in receipt of ESA, non-contribution based. I have inherited my sons two pension pots and will be receiving around £27,000 in total.(£22,000 and £5,700)

My concern is that the larger sum of £22,000 of  will be used to pay family debts and shared among my three remaining children.   This means that within Six months the largest part of this money will be gone.  

ESA is my only benefit. I am concerned about losing that and other benefits such as free prescriptions. I am on about 7 separate prescriptions a month and worried that i will not be able to afford them. 

I welcome any advice please. 

poppy123456

If all of your ESA is Income Related then savings of more than £16,000 will mean there's no entitlement to any means tested benefits.

This will also include any other means tested benefits you may also be claiming like housing benefit and council tax reduction. All local authorities have their own rules for savings limit with council tax reduction and some have a maximum limit of £6,000.

If you give your money away then this could be seen as deprivation of capital and you would still be classed as having the money.

As soon as the money goes into your bank you must report the changes.

calcotti

Are you inheriting the money or are you inheriting pension pots (money still in a pension fund).
Your post refers to inheriting pension pots and if the money is still in a pension fund it will be ignored.
If you are inheriting money then, as poppy says, going over £16,000 ends your means tested benefits. When the capital drops below £16,000 you may be able to claim Universal Credit but you may be treated as still having money you have given away. 

ros151

Thank you for both comments. I am considering allowing the larger amount to go into my sons account directly as he will be paying the debts on behalf of the family and managing that portion of the funds.  

Will this make any difference to my eligibility.  

Not trying to be dishonest- its just how it is. 

Comments appreciated. Thnk you. 

poppy123456

If you were left that money in a will by your son then having it paid into your son's bank account will be seen as deprivation of capital and you'll be classed as still having that money.