On benefits and big inheritance - advice agencies?

Ames

Hi all.

My mum died last month, without a will. I'll be finishing the probate forms and sending them off this weekend. When it's all sorted I'll be coming out with £60k, and there's going to be £1-2k in payments from her work and union (at a guess, I've currently no idea how much the work life insurance at work is but it's not going to be much). I get DLA, IS and SDA. I live in a council flat and get rent and rates paid.

I'd like to use it to buy a property. I know that should be allowed but I don't know all the rules, like if there'll be a limit on the size of property I'm allowed, what will be reasonable to spend on carpets etc, if I'll be able to get disabled adaptations done (for instance, putting in a downstairs loo if it's a house, they could say that I should have bought a flat, but stupidly I can't afford a flat only a house).

So I need to get proper advice, but I don't know where to go. I need somewhere with knowledge of the benefits and housing rules. I was going to try Shelter but they don't have a branch in Leeds. I'm thinking the council's housing advice people, but I don't know if they'll understand the benefits system. I'm scared of going direct to the benefits agency until I have to in case they sanction me from now, instead of from when I get the money.

I don't trust CAB here because they have given me duff advice every time I've seen them - I was even sued after following advice from a solicitor they put me in touch with! I've always found that they have specialists in one area, but they don't know about other areas. So when I needed debt advice, they messed up benefits problems.

Really I just want one place where I can go and get all the info in one go.

Sorry for the essay.

Alter_ego

It's simple really, you have to declare it for means tested benefits, but not for non means tested. I don't think you can use it to buy property and remain on benefits.

dmg24

Alter_ego wrote: »

It's simple really, you have to declare it for means tested benefits, but not for non means tested.

It is not simple, that was not what Ames was asking.

Ames, given that you know what you want to do, you could write to the DWP and ask them for written permission as to which of your plans are acceptable/ within the capital deprivation rules. Then you know there will be no comeback afterwards.

Purely being nosey, can you get somewhere for under £60K in Leeds?

willing2learn_3

So sorry to hear about your mum.

I think the problem comes when having to pay a mortgage. As i understand it you don't get housing benefit once you have a mortgage - i could be wrong though.

Of course if you can buy a house outright for that sort of price then guess that's not a problem.

Ames

I wont need a mortgage I can buy a property outright with 60k.

I was sure I could use it for a property and not fall foul of deprivation of capital rules, or so I was told when I asked on here when mum first got ill.

I did ask mum to leave everything to my sister so that I wouldn't have these problems, and she found out she could put it in trust for me but didn't get round to making a will.

DMG, what should I put in the letter to the DWP? Ideally I'd like someone to do it for me, I'm really struggling with my mental health and I'm drowning in paperwork, missing deadlines and not coping with all the pressure. It's taken me weeks to get round to the probate forms even though they're straightforward and I can't cope with the pressure of everything that needs doing, I know I could get into loads of trouble with the benefits people though if I mess this up. I'm not sure how much more I can push myself to do before I tip over the edge.

RAS

Ames

Take it easy, please. When my mum died, it took nearly a year to do the probate.

Ames

I have to get it done and sent off asap though, I should have done it already. Mum died on 8th April and we need to get the house up for sale straight away because summer's the best time to sell. Or so I keep being told. Besides, the benefits agency could accuse me of taking too long in order to stay on benefits if I drag my feet with it.

Does anyone know how much you're allowed to spend and not fall foul of deprivation of capital? as I have bipolar I'm scared that I'll go manic and blow the lot, or get paranoid and worry about every purchase in case it was extravagent - I mean buying hovis instead of value, stuff like that. If I stick to the amount I get in means tested benefits will I be ok? Then I can put it in someone elses name and just get them to give me the right amount each month. Or will they want to see receipts for everything?

RAS

Ames

There is a Leeds Mind. Can you speak to them and ask for some help?

You are not going to get much of a house for £60k but it is possible (one in the local EA for £43,500 at the moment).

Would it be a good idea to open an account that needs two signatures for all withdrawals, set up DDs for everything regular and then you and your special control freak take out so much a week?

Since buying a house will remove the LA's responsibility for paying LHA/HB, I do not think that will cause a problem, but you need to check.

You can also use the money to buy things that you need - so if your washing machine or fridge is very old, it would be OK to buy a new one.

However, the first thing is to take care of the house.

You can put it on the market before getting probate, just you cannot exchange until probate is granted. The EA and legal fees are paid out when the house sells.

What would happen if you moved into the house yourself for a few months, until it sold?

dmg24

I've just written a long reply and my connection crashed!

Do you have experience of any of the MH advocacy groups in Leeds? They are not likely to have specialist benefits knowledge, but will speak with the DWP on your behalf. They will also help you in getting more MH specialist support if you feel you need it.

With regard to the letter, I would state what you have above:

You are due to receive an inheritance, though the amount has not yet been confirmed. You would like to spend this money on a property to ensure your housing needs are met, and you will spend to do x, y, z (adaptations, furniture etc) to do this. Would this be acceptable to the DWP, and not breach the regulations regarding deprivation of capital? You will of course inform them of your change in circumstances as soon as you receive the money, and you will keep receipts for all monies spent.

If you can't get any more support I'm happy to help with letters, I'm just a bit busy with coursework until late next week. I don't accept PMs but if you PM alwaysonthego she can give you my Facebook details if it helps.

RAS, some cases of probate can go through far more quickly than yours. When my Gran left us, her estate was settled within weeks and without a solicitor.

RAS

dmg24 wrote: »

RAS, some cases of probate can go through far more quickly than yours. When my Gran left us, her estate was settled within weeks and without a solicitor.

i appreciate that, but what I was trying to say is that Ames does not have to rush things, particularly since s/he does not have to pay any IHT.

our problem was the solicitor holding the will.

Ames

RAS wrote: »

Ames

There is a Leeds Mind. Can you speak to them and ask for some help?

I could try, they weren't helpful last time I asked but there's no harm in asking again.

You are not going to get much of a house for £60k but it is possible (one in the local EA for £43,500 at the moment).

I live in a one bed flat in a very dodgy area, so the houses for less than £60k are palatial in comparison! I've been keeping an eye on Rightmove since mum got ill and there are always plenty around which meet my needs and even my wants too. Although there's a house opposite me that's been boarded up since before I moved in here 5 years ago, I was thinking about seeing if I could buy that from the council, that way I can keep my support network. I need to get other things sorted though before I can think about specifics.

Would it be a good idea to open an account that needs two signatures for all withdrawals, set up DDs for everything regular and then you and your special control freak take out so much a week?

There's no-one near me that could be a second signature.

Since buying a house will remove the LA's responsibility for paying LHA/HB, I do not think that will cause a problem, but you need to check.

You can also use the money to buy things that you need - so if your washing machine or fridge is very old, it would be OK to buy a new one.

However, the first thing is to take care of the house.

You can put it on the market before getting probate, just you cannot exchange until probate is granted. The EA and legal fees are paid out when the house sells.

It's a bit more complicated than that - we've decided to sell it to my dad, because he'd give us above market value for it. It needs a lot of work doing and he'd give us the price it would be if it were all done. But he doesn't want to risk putting his house on the market before we've got a grant of probate in case the government take the house off us. I know, I know...

What would happen if you moved into the house yourself for a few months, until it sold? Not an option, it's 70 miles away and all my support - doctors, outreach workers, hospital etc is here. It's been hard enough living there part of the time for the last 6 months while she's been ill, and I need my support more than ever now.

dmg24 wrote: »

I've just written a long reply and my connection crashed!

Do you have experience of any of the MH advocacy groups in Leeds? I emailed the advocacy service about 6 years ago for help with a problem, I'm still waiting for a reply! I have an outreach worker but it's not for that sort of stuff, she wouldn't be able to write letters for me or anything. They are not likely to have specialist benefits knowledge, but will speak with the DWP on your behalf. They will also help you in getting more MH specialist support if you feel you need it. I can't get it, my GP and psychiatrist have tried. I can't have counselling or other primary care MH support because of my outreach worker, and I can't have psychology help because I have physical health problems too and they say that support should come from the CFS clinic... who say I don't have CFS and psychology should see me...

With regard to the letter, I would state what you have above:

You are due to receive an inheritance, though the amount has not yet been confirmed. You would like to spend this money on a property to ensure your housing needs are met, and you will spend to do x, y, z (adaptations, furniture etc) to do this. Would this be acceptable to the DWP, and not breach the regulations regarding deprivation of capital? You will of course inform them of your change in circumstances as soon as you receive the money, and you will keep receipts for all monies spent. Thank you, that sounds fantastic. I'll get the probate form sorted and sent off then write something like that to the DWP.

If you can't get any more support I'm happy to help with letters, I'm just a bit busy with coursework until late next week. Me too... I was told I didn't need to submit an essay due to what's happened because I could get special consideration, then that I'd fail if I didn't submit something, then that the special circs form might not make any difference....... it never rains but it pours! I don't accept PMs but if you PM alwaysonthego she can give you my Facebook details if it helps.

RAS, some cases of probate can go through far more quickly than yours. When my Gran left us, her estate was settled within weeks and without a solicitor.

Thanks for the help both of you. I'm just finding it hard having pressure from my family to get everything sorted, as well as having to catch up with all the stuff I've been putting off. Everything's overwhelming me a bit.