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    • Proxy89
    • By Proxy89 7th Sep 17, 6:21 PM
    • 11Posts
    • 2Thanks
    Proxy89
    Inheritance, buying a house outight, benefits?
    • #1
    • 7th Sep 17, 6:21 PM
    Inheritance, buying a house outight, benefits? 7th Sep 17 at 6:21 PM
    Hello.

    Asking on behalf of someone I know, they require advice on this subject and so I want to be well informed for when I see him next.

    His poor mother died and has left some inheritance, close to £100,000 I believe.

    This gentleman is on benefits and disability allowance due to illness and currently living in a housing association property which of course is paid for via housing benefit.

    He is taking this opportunity to buy a property to live in as his benefits will stop upon receiving this money and wishes to buy his own home instead of renting his current property until the money runs dry.

    Where does he stand in this all? - Is this a viable plan?

    He plans to buy the property outright and the little remaining money left over to pay for any fees or moving expenses. Where will he stand on his benefits once he moves in to his new home because he cannot work due to his illness and thus this inheritance is the only cash injection he is going to see for a long time.

    I want to know the legality of what I have suggested and to know if there is any financial support for once he purchases and moves in to his home? (council tax etc, pretty much everything except for housing benefit as it'll be his home)

    Regards.
    Last edited by Proxy89; 07-09-2017 at 6:29 PM.
Page 1
    • Red-Squirrel
    • By Red-Squirrel 7th Sep 17, 6:27 PM
    • 1,613 Posts
    • 4,349 Thanks
    Red-Squirrel
    • #2
    • 7th Sep 17, 6:27 PM
    • #2
    • 7th Sep 17, 6:27 PM
    He would be better off staying in the housing association property, yes he will have to pay rent until the inheritance has been spent, but it's a secure home for life and when he can't afford the rent he can get housing benefit.

    If he buys a house he will not be able to afford to maintain it and there is no help for this in terms of benefits, so may find himself spending his old age uncomfortable in a run down house.
    • Proxy89
    • By Proxy89 7th Sep 17, 6:36 PM
    • 11 Posts
    • 2 Thanks
    Proxy89
    • #3
    • 7th Sep 17, 6:36 PM
    • #3
    • 7th Sep 17, 6:36 PM
    Maintenance isn't an issue as he has plenty of hands willing to help him to get the home where it needs to be. A good part of the motivation is for him to have his old home as he approaches his old age, his current property doesn't fits his needs well for the moment and most definitely won't in the future.
    • Red-Squirrel
    • By Red-Squirrel 7th Sep 17, 6:50 PM
    • 1,613 Posts
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    Red-Squirrel
    • #4
    • 7th Sep 17, 6:50 PM
    • #4
    • 7th Sep 17, 6:50 PM
    Maintenance isn't an issue as he has plenty of hands willing to help him to get the home where it needs to be. A good part of the motivation is for him to have his old home as he approaches his old age, his current property doesn't fits his needs well for the moment and most definitely won't in the future.
    Originally posted by Proxy89
    Are those willing hands also willing to pay for a new boiler when it breaks? Or for a new roof, or new windows, or emergency call outs when something goes wrong?

    If his current property doesn't meet his needs in the future, as a HA tenant he can be moved to one that does, or have adaptations provided for free or subsidised. In his own home he will have to pay for everything.
    • eddddy
    • By eddddy 7th Sep 17, 6:54 PM
    • 5,122 Posts
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    eddddy
    • #5
    • 7th Sep 17, 6:54 PM
    • #5
    • 7th Sep 17, 6:54 PM
    Are those willing hands also willing to pay for a new boiler when it breaks? Or for a new roof, or new windows, or emergency call outs when something goes wrong?
    Originally posted by Red-Squirrel
    And are those willing hands qualified gas engineers, electricians, roofers, window fitters, builders - who will do a good job and deal with getting building regs approval etc?
    • Proxy89
    • By Proxy89 7th Sep 17, 7:21 PM
    • 11 Posts
    • 2 Thanks
    Proxy89
    • #6
    • 7th Sep 17, 7:21 PM
    • #6
    • 7th Sep 17, 7:21 PM
    You gentleman have made fair points. I will let him know.

    Thank you.
    • Proxy89
    • By Proxy89 7th Sep 17, 8:01 PM
    • 11 Posts
    • 2 Thanks
    Proxy89
    • #7
    • 7th Sep 17, 8:01 PM
    • #7
    • 7th Sep 17, 8:01 PM
    Another question if you guys don't mind.

    I have done some reading on the topic of inheritance and benefits.

    It is from my understanding that once he receives this money his benefits will stop and rightfully so. I also know that one cannot reduce their capital substantially just to go back to benefits (buying extravagant cars and going on silly holidays).

    My qualm with the situation is I cannot see how he can use this money to benefit his life substantially. It can only be used to pay for the lost benefits until his money eventually expires.

    I don’t want to give the impression that he is a tired bum feigning a disability. His illness truly holds him back in achieving the things he wants in life and has done so for the past 15 years. He is aware of his limitations and is always angry with himself because of his disability. In short he is ashamed of himself.

    This money will be the only money he will receive until he eventually sees the dirt and I suppose I have a hard time understanding the limitations on the inheritance and how often and how much can be used to improve his life.

    As an example, he droves an old 2001 Volvo and has done for years. He was eligible to get a disability car but used this car instead because he doesn’t want to feel ‘disabled’ and I think kudos to him for not accepting certain benefits just because they’re available to him.

    He wants to buy a second hand Toyota that fits his needs more. Something that is automatic for example. Would this be seen as lowering his capital? - How can we know what he can or cannot spend his money on?

    Any thoughts appreciated.
    • G_M
    • By G_M 7th Sep 17, 8:07 PM
    • 41,065 Posts
    • 47,177 Thanks
    G_M
    • #8
    • 7th Sep 17, 8:07 PM
    • #8
    • 7th Sep 17, 8:07 PM
    There is a threshold ((£17K?) of savings he can have, and claim benefits (ask on the benefits forum for exact figures.

    Once he has his inheritance, naturally we (the taxpayers) should no longer have to support him from the ever-tightening public purse. But once his inheritance drops to (£whatever it is) he can claim again.

    His disability benefit I believe he can continue to claim throughout - but again, that's a benefits question and this is a housing forum.
    ]
    As for your original question - no, there is nothing illegal about the plan you first outlined, but he should consider the pros and cons of buying against staying where he is and keeping the cash.
    Last edited by G_M; 07-09-2017 at 8:38 PM.
    • Proxy89
    • By Proxy89 7th Sep 17, 8:21 PM
    • 11 Posts
    • 2 Thanks
    Proxy89
    • #9
    • 7th Sep 17, 8:21 PM
    • #9
    • 7th Sep 17, 8:21 PM
    I appreciate your thoughts. I will post in a different section more relevant to my new question. Thank you.
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