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  • FIRST POST
    • Shiny Pebble
    • By Shiny Pebble 16th Jul 17, 2:18 AM
    • 3Posts
    • 0Thanks
    Shiny Pebble
    Inheritance and ESA
    • #1
    • 16th Jul 17, 2:18 AM
    Inheritance and ESA 16th Jul 17 at 2:18 AM
    Hello lovely people,

    Currently I receive income-related ESA and housing benefit for a long term illness. I live alone in rented accommodation.

    My mother recently died and left me £50k in her will. The cheapest homes in my area are also £50k so I was considering moving into one, however, would I no longer receive ESA if I do that?

    Any help or pointers would be greatly appreciated.
    Last edited by Shiny Pebble; 16-07-2017 at 2:59 AM. Reason: Wrong inheritance figure.
Page 1
    • Alice Holt
    • By Alice Holt 16th Jul 17, 10:05 AM
    • 1,302 Posts
    • 1,424 Thanks
    Alice Holt
    • #2
    • 16th Jul 17, 10:05 AM
    • #2
    • 16th Jul 17, 10:05 AM
    Using the inheritance to purchase a home should not be considered deprivation of capital.
    I would expect your IB ESA to continue.

    Do bear in mind the maintenance costs involved in owning a home though!
    • epitome
    • By epitome 16th Jul 17, 11:01 AM
    • 2,668 Posts
    • 1,671 Thanks
    epitome
    • #3
    • 16th Jul 17, 11:01 AM
    • #3
    • 16th Jul 17, 11:01 AM
    You should notify ESA & Housing Benefit as soon as you have been paid the inheritance into your account. Yes this will stop ESA IR & Housing Benefit from being paid, but will not stop any ESA C that you have.

    When you have bought a house you notify ESA again, they will need proof, and your ESA IR will start again from the date you bought it.

    It may be a few months between having the money and buying the house, you will not have ESA IR or Housing Benefit for this period, and you will be spending/living off the money you want to buy the house with.. So you will have to be very careful not to spend too much.

    As mentioned a house requires maintenance, you will have to decide, can I live on my own house on benefits?
    Or Shall I live on the savings until they are below 16K and then tell ESA they are below 16K
    Last edited by epitome; 16-07-2017 at 11:04 AM.
    • Housing Benefit Officer
    • By Housing Benefit Officer 16th Jul 17, 11:08 AM
    • 2,326 Posts
    • 4,177 Thanks
    Housing Benefit Officer
    • #4
    • 16th Jul 17, 11:08 AM
    • #4
    • 16th Jul 17, 11:08 AM
    If the executor delays settling the estate the money is only counted when you receive it...
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • Londonsu
    • By Londonsu 16th Jul 17, 11:10 AM
    • 1,327 Posts
    • 2,825 Thanks
    Londonsu
    • #5
    • 16th Jul 17, 11:10 AM
    • #5
    • 16th Jul 17, 11:10 AM
    Also you will have to factor in the costs of buying which can be expensive, you could do your own conveyancing and there are links on the net to help, but it can be a mine field, as you wont have a mortgage the usual reports a lender would do would be something you would have to pay for yourself, a homebuyers report is the best way to go forward https://www.moneyadviceservice.org.uk/en/articles/a-guide-to-homebuyer-surveys-and-costs


    So if you have 50k pot and a house costs 50k unless you have savings to cover the cost of buying you would need to buy a house that's less than the 50k you have
    • Shiny Pebble
    • By Shiny Pebble 16th Jul 17, 1:59 PM
    • 3 Posts
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    Shiny Pebble
    • #6
    • 16th Jul 17, 1:59 PM
    • #6
    • 16th Jul 17, 1:59 PM
    Thank you so much everybody.

    You've really helped me out and I'll look into each of the points raised. I'll read into homebuyer reports tomorrow at the library.

    I think apartments a couple of miles away might be slightly cheaper so I'll do my best and look into things I can cut.
    • konark
    • By konark 17th Jul 17, 3:06 AM
    • 847 Posts
    • 658 Thanks
    konark
    • #7
    • 17th Jul 17, 3:06 AM
    • #7
    • 17th Jul 17, 3:06 AM
    Is probate of your mother's will being handled by solicitors? If so, don't expect the money to hit your account any time soon.
    • Shiny Pebble
    • By Shiny Pebble 17th Jul 17, 3:45 AM
    • 3 Posts
    • 0 Thanks
    Shiny Pebble
    • #8
    • 17th Jul 17, 3:45 AM
    • #8
    • 17th Jul 17, 3:45 AM
    konark -- yes but it's nearing the end after a 16 month wait. I can certainly understand what you mean about it taking its time!

    I would definitely advise people that receiving an inheritance can take a while (though we had issues with a property being sold, so hopefully most people don't need to go through that).
    • venison
    • By venison 17th Jul 17, 10:22 PM
    • 1,106 Posts
    • 1,163 Thanks
    venison
    • #9
    • 17th Jul 17, 10:22 PM
    • #9
    • 17th Jul 17, 10:22 PM
    Thank you so much everybody.

    You've really helped me out and I'll look into each of the points raised. I'll read into homebuyer reports tomorrow at the library.

    I think apartments a couple of miles away might be slightly cheaper so I'll do my best and look into things I can cut.
    Originally posted by Shiny Pebble
    Keep in mind that apartments can come with a monthly service charge (friends pay £60 a month), although this maybe payable by housing benefit.
    #WeStandTogether
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