would inheriting a share of a property affect benefits

sunwukong

I am currently on full benefits and unemployed, due to a death in the family I may inherit a share of a property in another part of the country, I want to know if just owning a share of it would affect my benefits, I have no intention of moving into it, the other siblings who will inherit intend to live in it, I have zero desire to live with them and there isn't enough room for all of us and my kids anyway. 

so would just being on the deed affect my benefits? when I'm not getting anything out of it and my other relatives whom are also unemployed and one is a carer for the other will be living in it for the foreseeable future?.

they want as many people on the deed as possible to reduce inheritance tax but I don't even know if they'd pay any the property was valued at 200k I don't know what the tax is, the solicitors got it valued it as a commercial space for some reason not a domestic home so I'm not even sure it was valued right and there's no money to pass on just the property.  

huckster

When you legally inherit a share of the property, you would have to disclose to benefits..

Because, relatives will be living in the property, decision makers are likely to ignore the capital value you own, but require you to update benefits, if the circumstances regarding the property changed.

The decision is about you having access to the money related to your share. And you would have to supply evidence that you could not access money related to your share.

Keep_pedalling

Yes it would affect means tested benefit, you really should insist on getting your share in cash a share in the house is no use to you. 

The number of owners makes no difference to IHT and it sounds like the estate is well below IHT exemptions anyway. You need to make it clear to the executors that you have no interest in having a share of the property and either want the property sold and the proceeds distributed or for the other beneficiaries to buy out your share.

kaMelo

sunwukong said:

I am currently on full benefits and unemployed, due to a death in the family I may inherit a share of a property in another part of the country, I want to know if just owning a share of it would affect my benefits, I have no intention of moving into it, the other siblings who will inherit intend to live in it, I have zero desire to live with them and there isn't enough room for all of us and my kids anyway. 

so would just being on the deed affect my benefits? when I'm not getting anything out of it and my other relatives whom are also unemployed and one is a carer for the other will be living in it for the foreseeable future?.

they want as many people on the deed as possible to reduce inheritance tax but I don't even know if they'd pay any the property was valued at 200k I don't know what the tax is, the solicitors got it valued it as a commercial space for some reason not a domestic home so I'm not even sure it was valued right and there's no money to pass on just the property.  

Do the other siblings currently live there or are they planning to move into the property?
If they live there already then it's highly likely to be disregarded. If however the property is now vacant and a relative plans to move into it then I suspect it may be harder to argue for a disregard as it was possible to realise the asset prior to the relative moving in but you all chose not to do so..

Sorry for your loss

sunwukong

"The number of owners makes no difference to IHT and it sounds like the estate is well below IHT exemptions anyway. You need to make it clear to the executors that you have no interest in having a share of the property and either want the property sold and the proceeds distributed or for the other beneficiaries to buy out your share."

they can't buy my share, they have no money, both unemployed and one is the carer of the other, they are currently living off the pension money of my parents, one of them always took the full amount out in cash on the day it was paid in and stored it in the home.

"Do the other siblings currently live there or are they planning to move into the property?
If they live there already then it's highly likely to be disregarded. If however the property is now vacant and a relative plans to move into it then I suspect it may be harder to argue for a disregard as it was possible to realise the asset prior to the relative moving in but you all chose not to do so"

no but they are going to have too do something, they currently live in a council place they are being threatened with eviction from because the tenancy was our parents.

this has been years in the making, there has been 3 deaths over 2 years,  the siblings lived with my parents they claimed zero benefits and have done absolutely nothing for 30 years, the relative who owned the home elsewhere in the country died, the home went to one of my parents whom died shortly after most likely due to the loss, a year later my other parent died who was on the council tenancy.

TBH I don't understand my siblings, the way I see it I am doing all right, I have benefits and a roof overhead paid by housing benefit. those two have nothing and as they have been off the radar so long having not worked or claimed benefits for 30 years and just living at home off our pensioner parents, I think they should just take whatever is there as I doubt they could claim benefits now except one of them I am sure can get disability benefits because I know people far better who do, that relative has multiple live long conditions including eye sight and a heart issue which has led to 3 heart attacks, the fact they have done and claimed nothing for 30 years looks very dodgy, they are getting the golden opportunity to own a house when they have done nothing, I think my sibling (the carer) should just jump in and take it all, they have nothing to lose as they already have nothing and the council want to evict them.

I think the real issue is the carer is frightened of responsibility being the only one named on things he keeps saying he wants others to join in mainly the other sibling who doesn't have any I.D, bank account or anything and refuses to get any they are a shut-in they refuse to leave the house for months, only goes out for doctors appointments and doesn't even go to all of them, since our father died my other sibling has obtained a passport, a drivers license and opened 2 bank accounts, he already is responsible for everything and has been since before our other parent died as they had rapid onset dementia so for a time that sibling was careing for 2 people and managing all the affairs, I think he has some mental block on being responsible in name.

I genuinely don't care about money, my feelings on the matter is I'm doing fine why rock the boat when I don't have to, those two must take it they have nothing they have got themselves into a mess over 30 years of doing nothing they need to take it or be homeless, and I'm perfectly happy if I get skipped over and they just put my kids on their Will so they get it after them or the land its on. 

and I don't know whats going on with the solicitors they only contacted me a few months ago, none of us has a copy of the Will to even know what it says and we only found out this week that a cousin none of us has ever met and have no contact details for is apparently involved too.  

theoretica

I can see where you are coming from - it is not unusual for someone to want to continue with their life and fiances unchanged and give up an inheritance.  Unfortunately, where benefits are concerned this may not be possible. Being assessed as still having this inheritance when you have given it away could really rock your boat financially!  Everyone involved here will need to take careful thought and advice once you know the exact situation of whether there is a will, what it says and who inherits what.  It sounds like your siblings need help too to get things they are entitled to in their own names.

kaMelo

sunwukong said:

"The number of owners makes no difference to IHT and it sounds like the estate is well below IHT exemptions anyway. You need to make it clear to the executors that you have no interest in having a share of the property and either want the property sold and the proceeds distributed or for the other beneficiaries to buy out your share."

they can't buy my share, they have no money, both unemployed and one is the carer of the other, they are currently living off the pension money of my parents, one of them always took the full amount out in cash on the day it was paid in and stored it in the home.

"Do the other siblings currently live there or are they planning to move into the property?
If they live there already then it's highly likely to be disregarded. If however the property is now vacant and a relative plans to move into it then I suspect it may be harder to argue for a disregard as it was possible to realise the asset prior to the relative moving in but you all chose not to do so"

no but they are going to have too do something, they currently live in a council place they are being threatened with eviction from because the tenancy was our parents.

this has been years in the making, there has been 3 deaths over 2 years,  the siblings lived with my parents they claimed zero benefits and have done absolutely nothing for 30 years, the relative who owned the home elsewhere in the country died, the home went to one of my parents whom died shortly after most likely due to the loss, a year later my other parent died who was on the council tenancy.

TBH I don't understand my siblings, the way I see it I am doing all right, I have benefits and a roof overhead paid by housing benefit. those two have nothing and as they have been off the radar so long having not worked or claimed benefits for 30 years and just living at home off our pensioner parents, I think they should just take whatever is there as I doubt they could claim benefits now except one of them I am sure can get disability benefits because I know people far better who do, that relative has multiple live long conditions including eye sight and a heart issue which has led to 3 heart attacks, the fact they have done and claimed nothing for 30 years looks very dodgy, they are getting the golden opportunity to own a house when they have done nothing, I think my sibling (the carer) should just jump in and take it all, they have nothing to lose as they already have nothing and the council want to evict them.

I think the real issue is the carer is frightened of responsibility being the only one named on things he keeps saying he wants others to join in mainly the other sibling who doesn't have any I.D, bank account or anything and refuses to get any they are a shut-in they refuse to leave the house for months, only goes out for doctors appointments and doesn't even go to all of them, since our father died my other sibling has obtained a passport, a drivers license and opened 2 bank accounts, he already is responsible for everything and has been since before our other parent died as they had rapid onset dementia so for a time that sibling was careing for 2 people and managing all the affairs, I think he has some mental block on being responsible in name.

I genuinely don't care about money, my feelings on the matter is I'm doing fine why rock the boat when I don't have to, those two must take it they have nothing they have got themselves into a mess over 30 years of doing nothing they need to take it or be homeless, and I'm perfectly happy if I get skipped over and they just put my kids on their Will so they get it after them or the land its on. 

and I don't know whats going on with the solicitors they only contacted me a few months ago, none of us has a copy of the Will to even know what it says and we only found out this week that a cousin none of us has ever met and have no contact details for is apparently involved too.  

It's a slightly complicated scenario but I think I understand it. The property, of which you may inherit a share, belonged to a relative and so was not lived in by either your parents or any of your siblings. If that's the case then I see no prospect of your share being disregarded as there is no obstacle in realising the asset.

I appreciate the sentiment that you're doing okay and would rather receive nothing, letting your other siblings benefit more, however you're in receipt of means tested benefits. Being in receipt of a means tested benefit and giving away an inheritance in the way you describe, it's highly likely to be considered deprivation of capital. If so any calculations for means tested benefits, like housing benefit, would include the inheritance in the calculation irrespective of whether you received it or not.

I can only agree with theoretica, from what you describe your siblings need help also and should seek support, especially with their housing as they were not the tenants at your parent's home, I don't know what the council will do in that scenario.

Ultimately though, until you know the contents of your parent's will nobody knows what the situation is. When you do you can make a decision as to the best course of action.

Once again, sorry for your loss, it appears to have been a rather tough couple of years for your family.

Keep_pedalling

If the solicitors are the executors this should make your life easier. Make it clear to them that owning a share of the property will be detrimental to your benefits  and that the house should be sold and the proceeds distributed as per the will.