Retired couple on benefits. Inheritance issue.

dodger1

HappyMJ wrote: »

Sell the property at auction and get whatever you can for it.

Do they get pension credit? If so, then the capital they have come into doesn't matter.

Spend it on living and maybe a holiday and enjoy.

Savings over £16,000 will reduce pension guarantee credit unless they are on an assessed income period.

sleepless_saver

dodger1 wrote: »

Savings over £16,000 will reduce pension guarantee credit unless they are on an assessed income period.

It's only the first £10000 of capital/savings that is ignored. Above that capital is assumed to provide £1 a week per £500 capital.

So it is very likely that the parents' decision to hang on to the house will result in their stopping getting any income related benefit at the end of their current Assessed Income Period (assuming they are on an AIP). At least if they sold the house they would have the money to live on. If they don't sell it, they will just have to manage on their pensions with no pension credit or council tax benefit.

The OP can work out the effects on their benefits using turn2us benefits calculator using an estimated value for the property.

dodger1

sleepless_saver wrote: »

It's only the first £10000 of capital/savings that is ignored. Above that capital is assumed to provide £1 a week per £500 capital.

So it is very likely that the parents' decision to hang on to the house will result in their stopping getting any income related benefit at the end of their current Assessed Income Period (assuming they are on an AIP). At least if they sold the house they would have the money to live on. If they don't sell it, they will just have to manage on their pensions with no pension credit or council tax benefit.

The OP can work out the effects on their benefits using turn2us benefits calculator using an estimated value for the property.

Sorry, you are quite correct, don't know where I got £16,000 from and I actually get PC

motherofstudents

I can understand wanting to keep it in the family but probably the best way to do it would be to sell it to the kids and spend the money. If they can't afford/get a mortgage then it would be a good idea to sell, either at auction or otherwise. If they are in aAIP find out how long it has to go and spend the money down to the last £10000. They may as well have things easy in their retirement and can give the kids some money.