Inheritance

ABoyBrushedRed

Hello

I am writing all this to gain advice for a friend in regards to his late Mums house in Bradford. I am going to extract a message he sent me on facebook stating the problem :-

"Me, my brother & sister paid £200 for the first installment of the fee to the solicitor to start probate work. Total fees to pay: £795 for 3 of us. In about a month all 3 of us will inherit my late mum's house in Bradford.
I've been to Citizens Advice Bureau in Manchester. I've been told I'll only be entitled to Disability Living Allowance, which I get already, about £320 a month. I'm going to lose about £650 a month of my Employment Support Allowance. My Housing Benefit will stop as well because my share of the house will be worth more than £16,000.
I'm probably going to end up in debt. I can't work due to mental health problems, stress & anxiety. Might have to go to food banks. But hopefully I'll somehow get through this difficult time.
Might have to force my brother & sister to sell the house."

Can anyone help in what a work around is so he can keep his share of the house but not have his benefits cut dramatically if not at all? I am kind of thinking there is no way

Any advice would be great.

Crabapple

No, there isn't a way. Means tested benefits are bound to be affected by an inheritance.

He needs to talk to his siblings about the house and what they are going to do with it. Sell it so he has his share of the capital, rent so there is a regular monthly income (tbh this is not going to be anything like the amount he will be losing in monthly income unless it's a mansion), or one of the siblings buy the others out.

ABoyBrushedRed

i been told that the mortgage has been paid in full

quidsy

He will need to release his share of the equity. He shouldn't be expecting benefits when he has share in a large asset. He can live of the money reasonably and when he has less than the threshold, apply again for help. He can't just spend it frivolously though it will be considered as deliberate deprivation of assets.

[Deleted User]

Hi,

can he not just refuse his share, then shared between brother and sister.

He will be no worse off.

ABoyBrushedRed

Is there such a thing as being able to transfer his share into a management company who will have ownership of his share till at a future date?

I advised if he could sub let the house but i dunno if that would put him in a worse situation.

missbiggles1

[Deleted User] wrote:

Hi,

can he not just refuse his share, then shared between brother and sister.

He will be no worse off.

That would be considered as deprivation of capital and his benefits reassessed as if he still had the money.

ABoyBrushedRed

[Deleted User] wrote:

Hi,

can he not just refuse his share, then shared between brother and sister.

He will be no worse off.

He can do but he seems to want to hold on to it because he says the money that can be gained from it will benefit him for the future.

Mojisola

[Deleted User] wrote:

can he not just refuse his share, then shared between brother and sister.

He will be no worse off.

He will be because he would be assessed as if he did have the money from the house - read up on deprivation of capital.

The best thing would be for the three beneficiaries to ask the executors to sell the house and to distribute the cash after finalising the estate.

That way, he will won't lose his benefits until the inheritance arrives in his account and then he will have that capital to live off.

ABoyBrushedRed

Mojisola wrote: »

He will be because he would be assessed as if he did have the money from the house - read up on deprivation of capital.

The best thing would be for the three beneficiaries to ask the executors to sell the house and to distribute the cash after finalising the estate.

That way, he will won't lose his benefits until the inheritance arrives in his account and then he will have that capital to live off.

Rather than refuse can he not just give his stake to his siblings under something like financial difficulty?

But once the inheritance arrives and he can live off the capitol? Will his benefit stop or be reduced?

Appreciate all the advice guys

missbiggles1

ABoyBrushedRed wrote: »

Rather than refuse can he not just give his stake to his siblings under something like financial difficulty?

But once the inheritance arrives and he can live off the capitol? Will his benefit stop or be reduced?

Appreciate all the advice guys

If over 16k it'll stop, between 6k and 16k reduce on a sliding scale, below 6k no effect on benefits.

How much is the house worth?