Inheritance

Frogletina

My friend is on benefits and is about to inherit some money from his Mother. This will possibly enable him to buy a small flat (approx £50,000) - he was living with her but her place will need to be sold and shared between all of her children.

Does anyone know what position this will put him in with regard to his benefits? Would he be expected to live off the inheritance until his income is low enough for him to re-apply for benefits or can he buy a property (which his siblings want him to do) and still receive benefits?

For reasons that I don't want to go into here, it is unlikely that he will be able to do any paid work in the forseeable future

tr82

For means tested benefits I think the money can be disregarded for up to 26 weeks if your friend tells DWP that it's their intention to use that money to buy a house.

seven-day-weekend

If he has assetts of over £16,000 he will not be entitled to any means-tested Benefits. It will not effect non-means-tested Benefits such as DLA and IB.

However, I think the post above is accurate as regards the disregard for buying a house.



So

alwaysonthego_2

I thought that income could only be disregarded for 6 months if you had sold an house and was buying another one.

I am sure it can not be disregarded if you have a sum lump of money and you invest it in property, I would have said that would be classed as deprivation of capital in order to claim means tested benefits.

To the op he should really check with the DM

Frogletina

alwaysonthego wrote: »

I thought that income could only be disregarded for 6 months if you had sold an house and was buying another one.

I am sure it can not be disregarded if you have a sum lump of money and you invest it in property, I would have said that would be classed as deprivation of capital in order to claim means tested benefits.

To the op he should really check with the DM

Yes, I have told him that he needs to check re deprivation of capital - I just wanted to know if anyone knew the options available. His family who all work are pressurising him to sign up with estate agents and giving him particulars of properties when they have no idea when the house he is living in will be sold and therefore he has no idea when he will get any money. I know it can take ages to sell a house

p00hsticks

Frogletina wrote: »

they have no idea when the house he is living in will be sold and therefore he has no idea when he will get any money.

So just to get the facts straight - are you saying that your friend was living with his mother in her house, and she has died and left the property in her will to be sold and the proceeds divided up between all her children ? I'm not sure, but I suspect in this case, as your friend will no longer be able to live where he has been, that he may be able to use the inheritance to purchase somewhere else without it affecting his benefit.

alwaysonthego_2

p00hsticks wrote: »

So just to get the facts straight - are you saying that your friend was living with his mother in her house, and she has died and left the property in her will to be sold and the proceeds divided up between all her children ? I'm not sure, but I suspect in this case, as your friend will no longer be able to live where he has been, that he may be able to use the inheritance to purchase somewhere else without it affecting his benefit.

Can you provide a link for this as this is something that I have not come across before and would be helpful for the op thanks.

healy

alwaysonthego wrote: »

Can you provide a link for this as this is something that I have not come across before and would be helpful for the op thanks.

Neither have I, I thought the money could only be "ring fenced" if you have sold one house (outright) and are looking to buy another.

alwaysonthego_2

healy wrote: »

Neither have I, I thought the money could only be "ring fenced" if you have sold one house (outright) and are looking to buy another.

I am thinking if it an adult who live with their parents he won't have a tenancy agreement or any formal tenants rights in the eyes of the law. So when his parent died and left him some money out of the house it should be seen as anyone else recieving a lump sum cash and how the DWP treat it, i.e it not being disregarded for 26 weeks.

I think the op's issue would be whether he has rights to remain in the home and he should seek a solicitor's advice.

Frogletina

p00hsticks wrote: »

So just to get the facts straight - are you saying that your friend was living with his mother in her house, and she has died and left the property in her will to be sold and the proceeds divided up between all her children ? I'm not sure, but I suspect in this case, as your friend will no longer be able to live where he has been, that he may be able to use the inheritance to purchase somewhere else without it affecting his benefit.

Yes, he has been living with her in the property, she was a widow and had recently been diagnosed with a terminal illness

The will leaves her assets and money to be divided between the children - two of whom are executors who are keen to put the house on the market and then the proceeds will be shared out equally

Frogletina

alwaysonthego wrote: »

I am thinking if it an adult who live with their parents he won't have a tenancy agreement or any formal tenants rights in the eyes of the law. So when his parent died and left him some money out of the house it should be seen as anyone else recieving a lump sum cash and how the DWP treat it, i.e it not being disregarded for 26 weeks.

I think the op's issue would be whether he has rights to remain in the home and he should seek a solicitor's advice.

He is not looking to remain
in the home, he wants to know whether he would be able to purchase a small flat or would he be expected to come off benefits altogether and rent somewhere until his capital has reduced to such a point that he needs to go back onto benefits. I just wondered if anyone had been in a similar position. Obviously once the house is sold he needs a place to live