Inheritance Effects ESA ?
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Richard74
Community member Posts: 7 Listener
Hello Everyone
I'm currently claiming income related ESA my father passed away in January he has left me a bungalow in trust i do not own the property but i am soul beneficiary so i would receive the rental income of between £800-£1000 a month also the sum of £20.000 cash that is currently in probate will my ESA stop completely ? Thank you
I'm currently claiming income related ESA my father passed away in January he has left me a bungalow in trust i do not own the property but i am soul beneficiary so i would receive the rental income of between £800-£1000 a month also the sum of £20.000 cash that is currently in probate will my ESA stop completely ? Thank you
Comments
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hi @Richard74 and welcome to scope, if your ESA is cont.based topped up with I.R then you will keep the cont. part, other means tested benefits will also be affected.2024 The year of the general election...the time for change is coming 💡
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hi @woodbine Thank you for your reply so i may still get something but reduced ?
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Yes its possible, you will need to dig out your recent ESA payment update and check if you get C.B topped up with I.R in which case you would get the C.B.
Are you in the support group?2024 The year of the general election...the time for change is coming 💡 -
Hello @Richard74 - & welcome to the community. Have you managed to look into the above?
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@woodbine @chiarieds thanks for your help I am in the support group I receive £260 every 2 weeks I’ve been in there for 6 years as I have chrons disease I do 14 hours permitted work a week .
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@Richard74 - This sounds like your ESA is income-related from what you've said with support group paying £228.20 every 2 weeks + the enhanced disability premium of £34.40 giving now £262.60. Is it that amount?
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@chiarieds yes that’s correct
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As advised by woodbine you need to check whether the ESA is entirely income based or is contribution based with an income based top up. You will also need to inform your local authority if you are claiming Council Tax Reduction and/or Housing Benefit.
Whether or not the bungalow counts as capital will depend on the nature of the trust. The rental income is treated as an increase in capital, not as income.Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
@calcotti @woodbine The trust is not yet set up that could take months . the letter from the dwp is
your living expenses £74.35
extra money because of the disability income guarantee £17.10
Limited capability for work addition
extra money because you are in the support group £39.20
which gives a total income-related amount £130.65
income & benefits
no income will be taken off your ESA
your income related amount is £130.65 less total income of 0.00
so your income related entitlement is £130.65
that is the only benefit i claim -
It appears to be entirely income basedInformation I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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After contacting the DWP i was told rental income was not seen as earnings only as an income in savings and i lost £16 a week in my benefits i thought i would have lost it all very surprised .
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Richard74 said:After contacting the DWP i was told rental income was not seen as earnings only as an income in savings
What has happened to the £20,000 you referred to in your opening post? If you have capital over £16,000 you have no entitlement to income based ESA.Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
sorry they said the rental income was increase in capital the £20,000 is in probate and i have not received it yet .
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Richard74 said:sorry they said the rental income was increase in capital the £20,000 is in probate and i have not received it yet .Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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