Pension Credit and an Inheritance

frugalfred

Hi,
I'm 61 and receive Pension Credit. I live in a house that's blighted by aircraft and motorway noise and would like to buy a flat in a more peaceful area near my mum's nursing home. I'm about to receive an inheritance of £60,000 which would enable me to move,but I'm wondering if the DWP would consider that I've deprived myself of capital.

Oldernotwiser

What benefits do you claim?

frugalfred

Hi oldernotwiser,
I claim Incapacity Benefit topped up by Pension Credit to £137 p.w. and Council Tax Benefit.
My health has deteriorated and I'm no longer able to travel to visit my mum's nursing home which is why I want to move closer to her.

real1314

frugalfred wrote: »

Hi,
I'm 61 and receive Pension Credit. I live in a house that's blighted by aircraft and motorway noise and would like to buy a flat in a more peaceful area near my mum's nursing home. I'm about to receive an inheritance of £60,000 which would enable me to move,but I'm wondering if the DWP would consider that I've deprived myself of capital.

Almost certainly. Your CTB and Pension Credit are both likely to stop.
You should advise DWP when you receive the money, as to fail to do so would be fraud.
If you choose to spend the money on a house move, you would not get any PC or CTB for some time. :cool:

Whiteknight

Do you own your current home and if so would you be selling this to use with the £60k to buy the new flat?

The chances are that once you inherit the money you would no longer be entitled to Pension Credit as your savings would attract at least £100 a week in assumed income and that with the Incapacity Benefit would take you over the £137 limit.

If you did buy the new property it would be up to a specialist decision maker to decide if you had spent the money with the intention of getting rid of it.

hippy-chicy

I don't really agree with what has already been posted.

For CTB we can disregard a capital sum for up to 52 weeks any amount paid to the claimant and deposited in their name soley for ;

i )purchasing premises which they intend to occupy as their home
ii) effecting essential repairs or alterations to the premises which they occupy or intend to occupy as their home.

HB(SPC) Sch 6 Para 18; CTB(SPC) Sch 4 Para 20

NB: I am not sure if the same disregard applies to PC. Maybe someone in the know can clarify?

You would have to show that this is what the money is for in order for it to be disregarded, however I've never seen a case where the above applies so you would need to get some specialist advice from your local authority and pension service.

You don't say what you would do with the property that you live in now, would the £60k inheritance be enough to buy the new property out right. If you own the property that you live in now and were to put it up for sale it could be disregarded whilst it was for sale for 26 weeks or longer if reasonable. Once that property was sold that is when the capital could become an issue - obviously we would allow for any outstanding mortgage , secured loans then less 10% of equity left for selling costs.

You dont say what type of pension credit you are in receipt of - if it is Guarantee pension credit (GC) it would be up to the pension service to make a decision on your capital - if you remained in receipt of GC you would continue to get council tax benefit - which is possible.

If its Savings credit that you are currently in receipt of - from the date that your capital exceeded £16k you would no longer be entitled to council tax benefit , i'm not sure about the savings credit as i'm not a pension credit assessor.

Its important that you get some specialist advice before you proceed with anything, so please get in touch with the relevant departments direct or the CAB.

Oldernotwiser

hippy-chicy wrote: »

I don't really agree with what has already been posted.

For CTB we can disregard a capital sum for up to 52 weeks any amount paid to the claimant and deposited in their name soley for ;

i )purchasing premises which they intend to occupy as their home
ii) effecting essential repairs or alterations to the premises which they occupy or intend to occupy as their home.

And yet we've had a poster recently in a similar position who was told (at many levels) that she would lose IS/CTB if she used an inheritance to buy a property, even though she's currently claiming LHA.

hippy-chicy

It sounds like the other poster was informed incorrectly. That is why it's so important that people get information/ advice direct from the departments concerned.

Oldernotwiser

hippy-chicy wrote: »

It sounds like the other poster was informed incorrectly. That is why it's so important that people get information/ advice direct from the departments concerned.

It was the departments concerned that advised her of this and in writing.

I'll try to find the thread this afternoon as you may be able to help her.

frugalfred

Thanks for the replies. I'm claiming Guarantee Pension Credit,not Savings Credit,and would use £50k to buy the flat,leaving me with savings of £10k.