What benefits will be affected by an inheritance if I use it for a home purchase? — Scope | Disability forum
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What benefits will be affected by an inheritance if I use it for a home purchase?

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encaser
encaser Community member Posts: 400 Pioneering
edited November 2020 in Benefits and financial support
Hello,
I'm possibly receiving (in probate) an inheritance sum that would be used to buy a house.
However, as a disabled person in receipt of ESA with severe disablement add on, housing benefit, Council Tax reduction, carer allowance in the form of self-manged Direct Payment and PiP, I'm wondering what will stop, for how long and/or be possible to reclaim (if at all) once the inheritance is used to buy a home?
I rely on carer provision and have seen that if you have over £23250 that stops. So would I be able to reclaim that once a house is bought and would I be able to get ESA back assuming I was then under the threshold? Oh and get the Council Tax reduction for the new home? Obviously I would not claim Housing Benefit.
Thanks for any advice.

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  • poppy123456
    poppy123456 Community member Posts: 54,222 Disability Gamechanger
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    HI and welcome,

    As soon as the money goes into your bank all of your means tested benefits will stop. This will include all of your benefits except PIP, which isn't means tested. However, if any of your ESA is Contributions based you will keep this part, which is £113.55 per week. If you don't know what your ESA claim consists of then you will need to ring DWP to ask.

    As you are currently claiming the Severe disability premium in with your ESA, if your money drops below £16,000 within 28 days then you will be able to reclaim your ESA, providing it's before January 17th 2021. After this date the SDP transitional protection will end and you will need to claim Universal Credit even if it's within those 28 days.

    Savings of £6,000 and over will reduce your benefits by £1 per week for every £250 over that amount for ESA and £4.35 per month for every £250 over that amount for UC.

    For your direct payments then yes you will need to report the changes to your local council and i'm sure you would be able to restart that once your savings drop below the level but you may have to pay extra towards your support/care.

    Hope this helps.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
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  • encaser
    encaser Community member Posts: 400 Pioneering
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    Hello,
    thanks for the swift reply and welcome.
    I have no idea about the ESA being contribution based, beyond that I originally worked in the latter half of the 80s but became disabled through an RTA, so whether that period of employment counts?
    The inheritance won't be until end of next February, so that would mean UC - whether that will be similar in amount/judgement?
    A period of loss of benefits looks certain, my other main concern was that using the money to purchase a property to live in (I'm in a housing Assoc. home now) would be regarded as deprivation of income and mean I would not requalify for benefits even if I went below threshold levels?
    The plan in mind: to look for a property nearer the time, notify the various agencies when the money presents and buy as soon as is practicable to not suffer ever decreasing losses too long whilst paying for care etc. myself. And, then reclaim the necessary benefits available.
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  • poppy123456
    poppy123456 Community member Posts: 54,222 Disability Gamechanger
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    Were you previously claiming Incapacity benefit before ESA?

    Purchasing a house will definitely not be classed as deprivation of capital but the money will not be disregarded while you look for a house.

    Whether your support group award will be honoured when you claim UC will totally depend on whether your ESA stops or continues as a Contributions based only claim.


    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
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  • encaser
    encaser Community member Posts: 400 Pioneering
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    Yes, I was originally getting Incapacity Benefit with the Severe disability premium. So, does that mean I then went onto Contribution ESA? 
    It's a relief that I should be able to reclaim benefits  - depending on how long that takes!
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  • poppy123456
    poppy123456 Community member Posts: 54,222 Disability Gamechanger
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    Thanks for that. This means that part of your ESA is Contributions based (£113.55 per week) which you will continue to receive once you receive the money into your bank. You will need to report the changes once the money goes into your bank and you will lose the remainder of your ESA top up.

    However, even though the ESA will continue you will not be able to claim for the income related top up and you will need to claim UC for this once your savings go below £16,000. Your CB ESA will continue and will be deducted £1 for £1 from any UC entitlement. Your ESA support group award will be honoured in UC and you will be placed into the relevant group (LCWRA)

    Hope this helps.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
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  • encaser
    encaser Community member Posts: 400 Pioneering
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    That's cleared things up somewhat.
    Thanks for your time and help.
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  • poppy123456
    poppy123456 Community member Posts: 54,222 Disability Gamechanger
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    You're welcome.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
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