Will I lose benefits

Sunflower15
Sunflower15 Online Community Member Posts: 13 Listener
in Benefits and income

hi, will try to keep this simple:


I live in Mum’s house, she passed away in 2024. House is now sold stc. My sister and I are joint executors and beneficiaries.

The idea was for us each to buy our own flats/ homes.

my sister found hers immediately and had offer accepted so it’s progressing alongside the sale of this house. I haven’t found anywhere yet and now am under pressure from my sister and the process to decide if I’ll move out anyway into temporary accommodation while I try to find a permanent home.


I don’t want the sale to fall through or her purchase. I also don’t want to be homeless or have to move twice. I could stay with our dad for a very short time.


my big worry is that once the funds are in our joint Executor account that I will lose my UC limited capacity to work benefit, I believe I will keep my PIP.

If I lose my UC I won’t then be able to buy anything as I need a small mortgage to do so and that’s already been agreed in principle based on UC.


I will have around £109k in an executor account and not have a home so will I be allowed to use that for a purchase if I’ve left my home here that’s being sold? Withiut losing my benefits.

What’s the situation?


I am also going to call Citizens advice. I am VERY anxious and not sleeping.

I have ME, am housebound 6 days a week, and have carers so disruption is very hard. I don’t know whether to just put an offer in on something I’ve seen even if not 100% just to try to not end up in a bad situation.


Thank you.

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Comments

  • Sunflower15
    Sunflower15 Online Community Member Posts: 13 Listener

    sale process started mid to late November. Very short chain. Survey already done start of December. Sisters home has no chain. Just extra info. Timescale wise she’s hoping to have moved by end of March.

  • rubin16
    rubin16 Scope Member Posts: 1,380 Championing
    https://forum.scope.org.uk/discussion/140852/will-i-lose-benefits

    Hi,

    Just to let you know that any capital gained from a property sale is disregarded for upto 6 months on UC. So once you have the funds essentially you have 6 months to find somewhere suitable.

    Personally though, I would look at maybe moving in with your dad till you find somewhere suitable and so the sale doesn't fall through for your sister. At the same time you don't want to rush yourself in making a purchase you'll regret later, so need to find your perfect property too.

    Hope this helps.

  • Kimi87
    Kimi87 Online Community Member Posts: 8,160 Championing
    edited January 5

    As you currently live in the property being sold, then the six month disregard of the sale money should apply.

    DWP also have discretion to extend that time frame if you haven't found anywhere in 6 months.

    See "money received in relation to property" https://england.shelter.org.uk/professional_resources/legal/benefits/universal_credit/universal_credit_capital_rules#disregarded-capital

    Legally money in an executor account belongs to the estate. Once the estate has been finalised, the money should be distributed to the beneficiaries. Distribution shouldn't be delayed in an attempt to keep entitlement to means tested benefits, as this might be considered deliberate deprevation of capital.

    As it seems you meet the criteria for the money to be disregarded, there is no reason to delay distribution unnecessarily.

  • Sunflower15
    Sunflower15 Online Community Member Posts: 13 Listener

    @rubin16 and @Kimi87


    Both of your replies were very reassuring to read and helpful, thank you so much!

    I will be proceeding with the sale at the pace it naturally takes and I’m both looking for somewhere to buy and gathering advice on if I need longer term temporary place to live.

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