Inherited half a flat. Am disabled, on PIP & UC

SuchiDot

·        I am on Universal Credit as of May 2021. I am waiting for my Work Capability test result to be processed and will more than likely be declared unfit fo work due to myriad of physical and mental health issues. 

·        I get PIP enhanced level for mobility and care 

·        I am in a wheelchair, have 24 hour care and live in a fully adapted Social Housing Property. 

·        The rent is now fully paid for by Housing Benefit  

·        In March 2020 I lost my Dad to COVID-19. His will left me a joint owner with my older sibling of his flat in Kent and also some cash. 

·        This flat has hilariously been valued at £175,000, (apologies for the drollness in which I point out the value of the property but the flat is situated in a building that has more drug dealers residing in it than a Colombian cartel and a variety of residents who give new meaning to the term “rise of the foot soldier”

Further info.

A)    £4000 housing benefit overpayment. This was whacked on me despite me  informing HB (Housing Benefit) in the council that a friend had moved in with me order to help with my care. Apparently HB were supposed to remove the severe disability component element of my rent  benefit but never did. Until May 2021 I worked part time so only got part of my rent paid. This was paid DIRECTLY to my social-!!!!!! landlords. I had no idea HB had not removed the severe disability component in their Stephen Hawking rent calculations. It was NEVER explained to me, nor did I receive any correspondence about it. I only became aware of the debt when HB started taking £5 a month from my meagre HB whilst I was working but they NEVER  told me what they were taking the  £5 a month for despite being asked numerous times by not only me but my older sibling because by then I had had several break-downs.

    I still owe over over £800 to HB for this debt which actually was caused by their incompetence. I didn’t pay the debt fully due to their not being enough funds.

C)    £5000 for an IVA which was paid off in full. 

D)    £2,000 (approx) of my share of Probate bills, and the costs linked to my father’s death

E)    My older sibling took the rest of the inheritance as I apparently owed her it all. I apparently still owe her over £2000.  In all fairness she is paying my monthly electricity/broadband bill as I can’t afford it on UC and she has paid for many things I have needed  over time (I kept track of these by the way on an excel sheet and try to pay back when I can) but what hurts is that a lot of the things she has added to this bill were treats she bought me or so she said they were treats at the time. Oh well…

F)     So my inheritance cash wise out of about  £20,000 cash from my Dad was about £100. I only got that because my younger sibling, who was the executor of our father estate quietly siphoned it off so I had a little something for myself. 

G)    The flat in question that I partly inherited is totally unadapted for a disabled person like myself to move into permanently and is nearly 200 miles away from my life and support network. I do NOT and WILL NOT consider moving into the flat as it is on the 3rd floor, the lift is crappy, and I hate the area. I suppose I could join the drug cartels in the building and be one of the foot soldiers in a power chair, it would pay the bills if nothing else.

·        So I  have no idea where I, in my case sit, (wheelchair) benefit wise because of inheriting this flat.

HELP?

 

MovingForwards

What's your older sibling's intentions about the flat?

Why not sell it, take your half of the money (someone will say what benefits will be affected) and get on with life?

No one is saying you have to live in it.

calcotti

You refer to rent being paid by Housing benefit. Do you mean UC or are you in supported accommodation?

As soon as the flat is in your joint names your half share becomes your capital and if over £16,000 ends you entitlement to UC unless you immediately put the flat on the market. If you are trying to sell the flat then the value can be disregarded for six months (or longer if reasonable to do so). If your sibling doesn't want to sell then you may also be able to get it disregarded (but they ought to buy you out).

Once the property is sold any money you receive will be capital and if over £16,000 will end UC entitlement. Using capital to pay down debt is not deprivation of capital so if immediately paying off debts (within the same assessment period as you receive the money) keeps you below £16,000 then you can keep UC but it will be reduced by £4.35/month for every £250, or part thereof, above £6,000.

Newly_retired

Pip is not means-tested so will not be affected by any inheritance.