How will transferring an inheritance affect my benefit

Zoey202
Zoey202 Community member Posts: 6 Listener
in Benefits and income
I have been separated from my husband for a few years, neither of us could afford a divorce so we didn’t bother. Unfortunately he has passed away without a will which means that his house which is fully paid off will go to me, he had only recently inherited this from his father and I know he had intended to draw up a will so that it could go to his son but hadn’t gotten around to it. I want my stepson to have the house but I’m concerned that if I refuse it and sign it over to him that it will be considered deprivation of assets and I’ll lose my benefits. Can I contest this without it affecting my benefits? 

Comments

  • calcotti
    calcotti Community member Posts: 10,005 Championing
    edited July 2022
    It would be down to a Decision Maker to decide but unfortunately in the circumstances it seems likely that it would be considered deprivation of capital. Is there any written evidence of his intention to write a will for the benefit of his son.

    What benefits are you receiving?
  • Zoey202
    Zoey202 Community member Posts: 6 Listener
    There is no written intention, he had spoken to me and his son about it after his father died. I’m in receipt of housing benefit, ESA and PIP. 
  • calcotti
    calcotti Community member Posts: 10,005 Championing
    PIP will not be affected. Is any of the ESA contribution based?
  • Zoey202
    Zoey202 Community member Posts: 6 Listener
    Yes it is contribution based. 
  • calcotti
    calcotti Community member Posts: 10,005 Championing
    edited July 2022
    Any contribution based ESA will not be affected by an inheritance. As you are getting Housing Benefit I would expect you to be getting some income based ESA also. That, along with the Housing Benefit and any Council Tax Reduction will end if capital exceeds £16,000. (The Council Tax Reduction threshold may be lower.)
  • poppy123456
    poppy123456 Community member Posts: 59,054 Championing
    If you're ESA is more than £117.60 per week then at least part of it will be Income Related.
  • Zoey202
    Zoey202 Community member Posts: 6 Listener
    Thanks so much for your help. I suspected that this may be the case, it has definitely made me value the need to have a proper will in place. 
  • Zoey202
    Zoey202 Community member Posts: 6 Listener
    Perhaps it is income related, I will double check on that.
  • poppy123456
    poppy123456 Community member Posts: 59,054 Championing
    ESA letters are extremely difficult to read and understand. You would be better ringing ESA to ask if any part of your claim is contributions based.
  • calcotti
    calcotti Community member Posts: 10,005 Championing
    It is possible that you would be able to persuade a Decision Maker that transferring the house to him is reasonable and not deprivation of capital given that it is more logical that he would want the house to go to his son rather his estranged wife and you are therefore honouring his likely wishes rather than seeking to get extra benefit for yourself. 

    Unfortunately however your means tested benefits will stop when you get the money and could then ask DWP to advise on on how they would treat the action.

    Really important to find out what the ESA is.
  • Zoey202
    Zoey202 Community member Posts: 6 Listener
    Thank you, I will check which form of ESA I’m definitely receiving but I think my best course of action will be to ask the DWP when the legal thing is finalised and hope that they can see why I would want to transfer the property. I appreciate all of your help and advice. 
  • L_Volunteer
    L_Volunteer Community Volunteer Adviser, Scope Member Posts: 7,925 Championing
    You are welcome @Zoey202. It is the very least you deserve. I'm glad you're aware of what the best course of action could be for you. If we can do anything to support you further with this though, please don't hesitate to let us know  :)

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