will my esa + pip be efected by an inheritance

johnc83
johnc83 Online Community Member Posts: 4 Listener
in Benefits and income
hi all

i will try and keep this as short as possible ..... my mother has told me that i will be receiving around £100.000 upon her death .... the question is i am receiving ESA/PIP council tax reduction and housing benefit .... the benefits are for mental health problems, but what should i do to best approach this issue ... and if i do have my benefits taken away will i be able to reclaim once the money has been spent 

kind regards

john  

Comments

  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    PIP is not affected.
    If any of your ESA is contribution based that part is not affected.
    Income based ESA, Housing Benefit and Council Tax would all stop if you have capital over £16,000.
    You will not be able to claim Housing Benefit again so to get help with rent in the future you would have to claim Universal Credit. That would would also replace any income based ESA. Entitlement to CTR depends on the rules for your particular local authority.
  • johnc83
    johnc83 Online Community Member Posts: 4 Listener
    thankyou for getting back to me 
    it really makes me question if its better just to say to my mum dont leave me the money .... 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Not sure why anyone would refuse that amount of money. Your ESA could be part Contributions based, which won't be affected, as advised. You will still also have your PIP.
  • janer1967
    janer1967 Online Community Member Posts: 21,922 Championing
    That amount of money will keep you for a few years and is only right that you pay your own watbwhen having such an inheritance 

    Your mum will have saved hard to provide this for your future 
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    If you have children you could ask her to leave the money to them instead of you.
  • johnc83
    johnc83 Online Community Member Posts: 4 Listener
    thankyou all
    no im single no kids .... im just wondering whats best to do for the future as this money will not last long with money going out & nothing coming in 
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited March 2022
    Do you know how your ESA is made up? Does it include any contribution based entitlement? If you are not sure you should find out.
  • johnc83
    johnc83 Online Community Member Posts: 4 Listener
    edited March 2022
    I  hope she out lives me !!! but when posed with this question i have to give an answer upon her insistence ... my response has always been 'i dont want to talk about it' ... but its time to grow up 
  • Ostia
    Ostia Online Community Member Posts: 68 Empowering
    Hello all
    The Law allows for parents to leave money and or property to their disadvantaged offspring in a way which safeguards the benefits they need.  Plenty of people do this so that their disabled child is provided for. Please look into a Disability Will Trust which your mother will need to set up for you in her Will.  A specialist lawyer is required to do this...STEP qualified. It is not cheap but it is worth doing so that you inherit the money plus hopefully a reduction in inheritance tax, plus keep your basic benefits. All the best, A. 

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