contribution based esa and the effects of a future inheritance

frazzledmum2

Sorry this is going to end up being a long post. My mother has been diagnosed with terminal cancer, so when she final goes both my sister and myself will be looking at an inheritance of app £80k each. At present my husband is on contribution based esa - support group. He also gets industrial injuries benefit, 2 small company pensions, and we both get pip at enhanced mobility level and standard care level. I also receive careers allowance for looking after him. We receive child tax credits which will end when our youngest finishes her A levels. How will this inheritance effect his esa benefits. At the minute we have app £1 k in savings, and our mortgage is nearly paid off. We desperatley need a new car but don't know if this would be classed as deliberatly getting rid of our capital. Also we have one child in his 2nd yr of a 4yr course at uni, who gets full maintence loan at the moment. Our 2nd child should be going to uni in September. Does this amount of inheritance have any effect on this. Lastly my sister due to mental health issues also gets contribution based esa - support care level. She has savings, but is living in rented accommodation at the moment. We would like her to be able to use the inheritance and savings to purchase a property to secure her future as best as we can but again will this be classed as deliberatley getting rid of her capital, as she will definatley require the esa to be able to live on it. Any advice would be greatly appreciated as I'm struggling to know who best to ask for advice.

Alice_Holt

Contribution-based ESA is not means-tested so will not be affected by an increase in savings.
Any income-based top up to the contribution-based amount will end.
Your ESA letter may give you the split between CB and IB ESA. It is likely that (in the support group) £113pw would be the CB element.

https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/employment-and-support-allowance/help-with-your-esa-claim/esa-how-much-you-can-get/

Note that CB ESA can be reduced if the pensions exceed £85 per week. The link should give you more info.

Spoonie_Turtle

[Just so you know: if your sister does buy a property she will probably need to buy it outright (especially if she is surviving solely on ESA) as there would be no help available for paying off a mortgage.]

TELLIT01

With your sister's health conditions is it really a good idea to purchase a property?  Not only will much of her inheritance and savings go on the purchase, she will then have all the costs of upkeep in the future.  It may actually be better for her to continue to live in rented accommodation as her weekly costs will then be known. 

calcotti

TELLIT01 said:

With your sister's health conditions is it really a good idea to purchase a property?  Not only will much of her inheritance and savings go on the purchase, she will then have all the costs of upkeep in the future.  It may actually be better for her to continue to live in rented accommodation as her weekly costs will then be known. 

That could depend on the nature of the accommodation and security of tenure.