Pensioner recieving inheritance - a little help please

mercutiouk

I have my last surviving grandparent approaching his 90's and... while he's very possibly got a few years left on the clock (he's been getting us all used to the idea that he's coming to the end of his innings for a while) there's a little talk in the family between his daughters (my mum being one) about my mums position when she comes to inherit.

The other 2 sisters have little worry, both done fairly well etc.

My mum+dad were unfortunately rather less well off, my dad being disabled etc and are/were (my dad's deceased) living in a council house (in Rotherham, if it matters).

My mum is partially sighted and is over retirement age so receives benefits that covers the rent on the house and her council tax. She is in receipt of a small pension from one of my dads old employers and receives standard state pension. (I think that covers all the basics for our..."position").

When her father passes away there will be... a not particularly significant amount of money/assets passed her way.

I was wanting to check where she would likely stand on current receipt of her benefits etc when this inheritance comes her way. Assuming her share of her dads estate would be... 50-100k, what, if any, changes would be forced on her current circumstances?

The main worry here is if she'd be forced to move house/similar.

There are plans afoot (estate held "in trust" by me - basically mum given full access, she's VERY thrifty so it's likely to earn more than she'd take) but we'd like to have some idea where current legislation sits on it if anyone is much the wiser? We'd all rather it go straight to mum if it's not going to create ripples. Alternatively if it's a decent amount, there might be a purchase of property nearer my house so mums got us down the road.

Sorry if this is in the wrong section or not allowed (didn't see a section on inheritance so I figured as mums a pensioner it might fit here, it may also be a taboo topic so feel free to educate me on the fact if so ).

seven-day-weekend

She will not be required to move house.

I am not sure how it would affect her Benefits (if her qualifying Benefit for her rent paid etc is Pension Credit). Someone will be along soon, I am sure, who does know.

le_loup

Pensioner receives benefits.
Pensioners receives windfall.
Pensioner no longer needs benefits.
What's the problem?

p00hsticks

mercutiouk wrote: »

My mum is partially sighted and is over retirement age so receives benefits that covers the rent on the house and her council tax.

as seven-day-weekend says - a sum of anything over (I think) £16,000k will mean that means tested benefits such as council tax support and housing benefit will cease.

But she'll be able to remain in the house for as long as she wishes.

Keep_pedalling

You main worry about the house is unfounded. Yes she will lose some benefits, but not all are means tested. So if she is getting attendance allowance that will not be effected (if she is not getting it might be worth applying)

mercutiouk

Cheers for that, the main concern was "single pensioner in family sized council house" might mean a push. Now... yeah, we can obviously agree it might be better for all concerned but... it's been home for 30 years, that was a bit of a worry.

Attendance allowance wise, it's sight related so... she's plodding on at the moment.

Mojisola

mercutiouk wrote: »

My mum is partially sighted and is over retirement age so receives benefits that covers the rent on the house and her council tax. She is in receipt of a small pension from one of my dads old employers and receives standard state pension.

Her state pension won't be affected.

Her pension from your Dad's employer won't be affected.

Does she have any care needs related to her sight problems - if so, it would be worth looking at Attendance Allowance. That wouldn't be affected any inheritance.

She would have to start paying rent and council tax herself from her inheritance.

xylophone

It would be possible for your grandfather's will to create a discretionary trust, but expert advice would be required and the Trustees would need to understand the taxation position and be prepared to administer the Trust in accordance with HMRC rules.

http://www.step.org/member-directory

https://www.gov.uk/trusts-taxes/trustees-tax-responsibilities

p00hsticks

mercutiouk wrote: »

Cheers for that, the main concern was "single pensioner in family sized council house" might mean a push.

Pensioners are currently exempt from the so-called "bedroom tax", whereby housing benefit is reduced if a household is "under-occupying" council property.

atush

If she is in a larger council house, and only needs a flat, why doesnt she want to move? It would make it easier for her, esp if she no longer had to maintain a garden (plus cleaning when you have sight issues is difficult?) Does she pay bed tax for having too many bedrooms?

A move could be in her best interest. AS well as for families on the list.

Are you in the same council area? Could they switch her to be nearer to you? Into a flat?

Could she afford to buy into sheltered housing near you if she got a large amt?

sleepless_saver

State pension, occupational pension and attendance allowance or DLA if she gets those are not affected by income.

If she does not get guarantee pension credit then her housing benefit and council tax reduction would stop if she has more than £16000 capital.

If she does get guarantee pension credit the position re housing benefit and council tax help is more complicated and depends on whether she is in an assessed income period ( where changes in capital are ignored) or not. Google assessed income period for more info.