URGENT: Re: Inheriting a house in Northern Ireland while in receipt of benefits

Jo4

Can anyone tell me in monetary value

how much the pensioner would end up with if they sold the house?

Would the pensioner lose all of their benefits or just some of them if they sold the house?

If the pensioner rented out the house would they lose all of their benefits or just some of them?

Which option would leave the pensioner financially better off?

xylophone

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?

It could have been taken into account when calculating the benefit?





Really he needs to contact the benefits people and set out the facts - it will be up to them to consider his circumstances and take any action they deem to be necessary.

antrobus

Jo4 wrote: »

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?..

I don't think it makes any difference. Having a £50k house, or having £50k in the bank is treated the same way as far as I can see.

CA seems to operate in NI. You could try them.
https://www.citizensadvice.org.uk/nireland/

Jo4 wrote: »

It is very complicated.

Yup. Income tax and NI is bad enough. Flippin benefit system is a challenge.

xylophone

CA seems to operate in NI. You could try them.

The OP says in post 1

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.

However it might be the case that it could be "disregarded for up to 26 weeks".

The OP says

The pensioner's parent passed away last year,

The period may well have passed.

The pensioner should check what effect the inheritance may have on PC by contacting NIPI.

https://www.nidirect.gov.uk/articles/report-change-circumstances-northern-ireland-pension-centre

https://www.nidirect.gov.uk/contacts/contacts-az/northern-ireland-pension-centre-pension-credit

p00hsticks

Jo4 wrote: »

Can anyone tell me in monetary value

how much the pensioner would end up with if they sold the house?

Would the pensioner lose all of their benefits or just some of them if they sold the house?

If the pensioner rented out the house would they lose all of their benefits or just some of them?

Which option would leave the pensioner financially better off?

As far as I can see, you've only mentioned State Pension and Pension Credit.

Their State Pension will be completely unaffected by whatever they do.

You say they are getting around £40 a week in Pension Credit. So, simplistically, if they can rent out the property for more than that then on a weekly income basis they will be financially better off, even if they lose their PC entirely.

You don't mention their age, but selling the house for £50k could also simplistically provide them with £40 a week for 24 years even if just stuffed under the matress rather than saved/invested.

Are they simply concerned with an income for life or do they also want to pass something to descendants on thier death ?

antrobus

xylophone wrote: »

..The period may well have passed...

It may well have. Without knowing the exact details of the pensioners inheritance, it would be impossible to say. In the same way as I don't know whether or not the fact that the "house was in joint names" means that any disregard should have been or was applied to the pensioners previous interest in the property.

All I can do is point out there is a capital disregard, (which normaly applies "for up to 26 weeks or, if it is reasonable in the particular circumstances of the case, for a longer period decided by the LA") and provide a link to the relevant regulations so that people can read it for themselves. As opposed to jumping to conclusions.