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URGENT: Re: Inheriting a house in Northern Ireland while in receipt of benefits
Jo4
Posts: 6,843 Forumite
Can anyone please advise on the following situation which is not for me but for a pensioner who contacted Citizen's Advice Bureau and are nothing the wiser? The pensioner resides in Northern Ireland.
The pensioner had helped their parent to purchase a council house and the house was in joint names. The pensioner's parent passed away last year, having been predeceased by their spouse quite a few years earlier, and left their house to the pensioner. The pensioner owns their own house and is in receipt of state pension and pension credit. The pensioner is wondering what their options are and what they are legally required to do.
They have been approached by someone who would like to rent the house. A similar house in the same area sold for £50,000.
Another thing the pensioner had to pay their parents funeral expenses because their parent did not have enough in cash. The pensioner did look for a grant for the funeral expenses which was granted but then had to be paid back because their parent had an acre of ground which was left to the pensioner and all their siblings. Although the acre of ground was put up for sale and a bid of £23,000 was placed on it all the siblings would not agree to sell it despite having previously agreed to sell it. The plot was then put in all the siblings names so now they all own it and cannot agree to sell it.
The pensioner and one sibling were the executors of the will but the sibling took their name of the will. None of the siblings offered to pay a single penny for the funeral expenses or for putting the ground up for sale so the pensioner had to pay that bill too. The pensioner has been in hospital themselves since their parent passed and as a result they have been unwell for a few months. The pensioner is at their wits end and doesn't know what to do.
Any relevant suggestions would be greatly appreciated.
The pensioner had helped their parent to purchase a council house and the house was in joint names. The pensioner's parent passed away last year, having been predeceased by their spouse quite a few years earlier, and left their house to the pensioner. The pensioner owns their own house and is in receipt of state pension and pension credit. The pensioner is wondering what their options are and what they are legally required to do.
They have been approached by someone who would like to rent the house. A similar house in the same area sold for £50,000.
Another thing the pensioner had to pay their parents funeral expenses because their parent did not have enough in cash. The pensioner did look for a grant for the funeral expenses which was granted but then had to be paid back because their parent had an acre of ground which was left to the pensioner and all their siblings. Although the acre of ground was put up for sale and a bid of £23,000 was placed on it all the siblings would not agree to sell it despite having previously agreed to sell it. The plot was then put in all the siblings names so now they all own it and cannot agree to sell it.
The pensioner and one sibling were the executors of the will but the sibling took their name of the will. None of the siblings offered to pay a single penny for the funeral expenses or for putting the ground up for sale so the pensioner had to pay that bill too. The pensioner has been in hospital themselves since their parent passed and as a result they have been unwell for a few months. The pensioner is at their wits end and doesn't know what to do.
Any relevant suggestions would be greatly appreciated.
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Comments
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How much pension credit does she get? If it's just a top up then would the income from the rent not replace that and the state pension would not be affected. This way she would retain her asset and have money to live on.0
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.. The pensioner is wondering what their options are and what they are legally required to do....
Notify the Northern Ireland Pension Centre.
The following types of income are taken into account when calculating your Pension Credit:
£1 a week for every £500 (or part of £500) of 'capital' you have over £10,000 - capital includes savings and investments, and property that's not your main home
https://www.nidirect.gov.uk/articles/income-benefits-and-pension-credit...They have been approached by someone who would like to rent the house. A similar house in the same area sold for £50,000....
Does the pensioner concerned want to become a landlord? The simplest thing to do would be to sell the property for £50k and bank the proceeds.....Another thing the pensioner had to pay their parents funeral expenses because their parent did not have enough in cash. ...
The funeral expenses are a charge on the estate of the deceased parent. If the only asset in the estate has since been released to the beneficiaries, I would suggest contacting a solicitor.0 -
Did Pension credit know that she/he owned half a house that she/he didn't live in?Debt on 25/5/17
Mortgage[STRIKE] £61,999[/STRIKE] £59,335
Secured loan approximately[STRIKE] £20,000[/STRIKE] £19,353
Unsecured debt in DMP with Stepchange[STRIKE] £38,887[/STRIKE] £37,7630 -
The pensioner should advise the change of circumstances.
If sold, the capital could make a difference to PC because of the assumed interest rate on capital.
If rented out, the rent received could make a difference because of the increase in income.0 -
The pensioner should advise the change of circumstances.
If sold, the capital could make a difference to PC because of the assumed interest rate on capital.
If rented out, the rent received could make a difference because of the increase in income.
According to AgeUK, "rent from a property other than your home" is "completely disregarded", because the "property is valued as capital generating ‘deemed income’. So I don't think it matters whether you have a property worth £50k or £50k in the bank, the effect is the same.
http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true
However it might be the case that it could be "disregarded for up to 26 weeks".
See P1.200 (v); any premises not just a former home the claimant is taking reasonable steps to sell
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/365783/hbgm-bp1-assessment-of-capital.pdf0 -
How much pension credit does she get? If it's just a top up then would the income from the rent not replace that and the state pension would not be affected. This way she would retain her asset and have money to live on.
I think they said £40+ pounds, possibly £41 odd but I cannot remember what they said. I will ask them when I am talking to them again.
I do not know whether it would affect it or not that is why I started the thread. I am clueless on the matter.0 -
Notify the Northern Ireland Pension Centre.
The following types of income are taken into account when calculating your Pension Credit:
£1 a week for every £500 (or part of £500) of 'capital' you have over £10,000 - capital includes savings and investments, and property that's not your main home
https://www.nidirect.gov.uk/articles/income-benefits-and-pension-credit
Does the pensioner concerned want to become a landlord? The simplest thing to do would be to sell the property for £50k and bank the proceeds.
The funeral expenses are a charge on the estate of the deceased parent. If the only asset in the estate has since been released to the beneficiaries, I would suggest contacting a solicitor.
The pensioner doesn't know what to do and they don't know what options they have because they don't want to have no money to live on because they do not have any savings. If they sold the property how much would they gain or lose?
Does this mean that all beneficiaries should have paid an equal amount?0 -
debtisnotme wrote: »Did Pension credit know that she/he owned half a house that she/he didn't live in?
As far as I know they did. What affect would this have on the pensioner?0 -
The pensioner should advise the change of circumstances.
If sold, the capital could make a difference to PC because of the assumed interest rate on capital.
If rented out, the rent received could make a difference because of the increase in income.
Would they lose all of their benefit or just their PC?
Would they lose all of their benefit if they rented out the property?0 -
According to AgeUK, "rent from a property other than your home" is "completely disregarded", because the "property is valued as capital generating ‘deemed income’. So I don't think it matters whether you have a property worth £50k or £50k in the bank, the effect is the same.
http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true
However it might be the case that it could be "disregarded for up to 26 weeks".
See P1.200 (v); any premises not just a former home the claimant is taking reasonable steps to sell
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/365783/hbgm-bp1-assessment-of-capital.pdf
It is very complicated.0
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