Selling Flat moving in to my Mum's after passing away

Graham7777

Hi



Selling Flat moving in to my Mum's after passing away. I will have about £63000. Mum's needs work doing to it, will the dwp give me 24 weeks before they stop my benefit ESA. Thanks for any answers.

Caz3121

this post may be useful - https://forums.moneysavingexpert.com/discussion/5646639

calcotti

Is your ESA contribution based, income based or contribution based with an income based top up?

If some or all of your ESA is contribution based it will not be affected by capital regardless of the amount.

For the impact on any income based award see https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/795065/dmgch52.pdf. Paragraphs 52535 to 52544 are relevant. I don't think any disregard will apply because you are not using the proceeds to purchase a new home.

Money from the sale of premises which were lived in as the home
The law
52535 Money from the sale of premises which were lived in as the home is disregarded to give a person time to buy other premises if the person is going to
1. use the money to buy premises and
2. live in those premises as the home.
The period of disregard is 26 weeks or longer if it is reasonable from the date of sale.

Unfortunately I think your income based entitlement will end. If your mother's house requires essential repairs done then it will be reasonable to spend money doing this and hopefully you will not therefore be hit by deprivation of capital rules if you reapply for benefits when your capital drops below £16,000. Note that if your ESA ends you will not be able to reapply for it in the future but will need to apply for Universal Credit instead. If however you have a contribution based entitlement and your ESA therefore continues then you can ask to be reassessed for an income based top up in the future.

NedS

The money will only be disregarded if you can demonstrate that you intend to use the money to purchase a property within 26 weeks, and that you intend to live in that property. As you have no intention of using the money to purchasing a property the money will likely not be disregarded and will be treated as capital (for the purposes of income-based benefits).

calcotti

It occurs to me that if you have already inherited your mother's former home it's value is already your capital. However there is a 26 week disregard for that - see paragraphs 52551 to 52554. This disregard can be extended if their is a need to carry out repairs before moving in - see paragraph 52560.

Graham7777

thanks for all the answers