We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
UC benefits and inheritance

Executor55
Posts: 6 Forumite

Hi, I am the executor of a will which has the 3 children listed as the beneficiaries. The estate includes a small house , which will need to be sold to be split. Currently the house is lived in by one of the beneficiaries and is receiving UC. He is also been categorised as unable to work due to a health concerns but is not receiving PIP. As we need to sell the house, he will lose his home, I am hoping to try and find a small property that we can purchase using his inheritance so he has somewhere to live. This flat will be exchanged at the same time as the inherited house is sold, so it is likely he will not receive any additional money. I understand if he stays in the current property due to inheritance , the house would be disregarded in the calculation for means tested benefits, however there is no clear guidance on whether this is the case if we buy a property with money for the claimant to use as his primary residence. Appreciate if anybody could help me understand this and if they have had similar experiences.
0
Comments
-
Executor55 said:Hi, I am the executor of a will which has the 3 children listed as the beneficiaries. The estate includes a small house , which will need to be sold to be split. Currently the house is lived in by one of the beneficiaries and is receiving UC. He is also been categorised as unable to work due to a health concerns but is not receiving PIP. As we need to sell the house, he will lose his home, I am hoping to try and find a small property that we can purchase using his inheritance so he has somewhere to live. This flat will be exchanged at the same time as the inherited house is sold, so it is likely he will not receive any additional money. I understand if he stays in the current property due to inheritance , the house would be disregarded in the calculation for means tested benefits, however there is no clear guidance on whether this is the case if we buy a property with money for the claimant to use as his primary residence. Appreciate if anybody could help me understand this and if they have had similar experiences.
UC can continue to be paid if a new property is bought. The property he lives in is not counted as capital for UC.
If he has capital of over £16k at the end of his UC assessment period - then UC should be informed and will stop. He can reclaim once under £16k of capital.
I'm not sure when it is determined that the inheritance becomes the ownership of the beneficiaries, and the practicalities of coordinating property sales.
A PIP award would have been useful, as it's not means tested. Does he not have personal care needs?Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.1 -
As he is living in the property as his home and now owns it (abet a third) and the money that he receives from it is to be used to purchase a new home then that money should be disregarded for 6 months, and that can be extended if criteria is met.
https://assets.publishing.service.gov.uk/media/654111fb1f1a60000d360b54/admh2.pdf
ADM Chapter H2: Capital Disregards
Amount to be used to purchase premises
H2119 Where a person has received an amount within the past 6 months which is to be used to purchase
premises that the person intend to occupy as their home, that amount can be disregarded from the
calculation of that person’s capital where it
1. is attributable to the proceeds of the sale of premises formerly occupied as their home or
2. has been deposited with a housing association (see H2045) or
3. is a grant made to the person for the sole purpose of purchasing a home1
Is there other capital involved?
Let's Be Careful Out There2 -
Thankyou both. I think from what you have said and I am reading, what I am intending to do will be ok and he will continue to receive his UC (as long as he does not have much money left after the flat purchase ) He does have care needs, although some of this is mental and it’s difficult to get him to the doctor and diagnosed to the required level (on advice from CA it will take 12 months) and he probably doesn’t have the ability to push this with the doctors and benefit people.The probate came through very recently and my intention is to speak to DWP and explain what we are going to do. The house sale might take a while. I was under the impression that until the money is in his account or any property is distributed we don’t need to inform any of the benefit people. At the moment it all money and property is with me to sell and he has not inherited anything yet.0
-
As executor you're not allowed to withhold any monies even it helps a person claiming. When it's ready to be paid it should be, so it's not just when it hits his account.
Let's Be Careful Out There0 -
Yes there will be no delay in paying any funds. However I need to sell the house first as this is the wish of the beneficiaries. As mentioned I am hoping to purchase the flat for the beneficiary currently living there at the same time then dividing any remainder money accordingly. All beneficiaries agree with this course of action.0
-
Executor55 said:Yes there will be no delay in paying any funds. However I need to sell the house first as this is the wish of the beneficiaries. As mentioned I am hoping to purchase the flat for the beneficiary currently living there at the same time then dividing any remainder money accordingly. All beneficiaries agree with this course of action.
I also have concerns about your wish to purchase a flat for the beneficiary who still lives there. As executor your role is to wind up and distribute the estate in line with will. I don't believe it would extend to purchasing a flat for one of the beneficiaries, that would be down to them.
I may of course be completely wrong but I think it would be a good idea posting on the Deaths, Funerals and Probate board to seek advice about whether it's possible and if so, how to achieve what you want.
https://forums.moneysavingexpert.com/categories/deaths-funerals-probate
0 -
Thank you for the clarification . That is a fair point on the role of the executor. I will take the purchase of the flat under advisement. I suppose this is the main reason why I posted here.Regarding the other monies in the estate these are small and also there are outgoing payments and maintenance to be taken into account before any distribution is made. I do not think this is unreasonable and within the boundaries set out to me.0
-
It sounds like you should wait until property is sold before settling the estate.
The DWP might want a breakdown of what comes from the sale of the property and what monies come from elsewhere.
If monies elsewhere combined with the capital the person has already got is under £6k there won't be any deduction from UC if over £16K UC will end if new property isn't exchanged on same day.
Let's Be Careful Out There1 -
Would the beneficiary be amenable to setting up a power-of-attorney that is effective while the person has capacity.
Then, with their involvement and consent, the power-of-attorney could support with any purchase and do the bits that the person themselves was struggling with.Otherwise I also think it may be outside your remit as an executor to buy a property on their behalf because the will does not specify that.All shall be well, and all shall be well, and all manner of things shall be well.
Pedant alert - it's could have, not could of.0 -
Another factor to consider is the costs of the upkeep and maintenance of an owned property.
For someone solely in receipt of UC that will be difficult with the basic rate of UC @ £85pw.
I do think it sensible to apply for PIP. PIP covers both mental and physical health issues impacting on personal care needs.
Further to your earlier comment, it does not take 12 months to receive an award, this is only the case if the application is refused and the claimant needs to appeal to tribunal to get the incorrect DWP decision overturned.
A local advice charity should be able to help with completion of the form.
https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/help-with-your-claim/fill-in-form-pip/
A further advantage of PIP is that an award will increase the amount of Council Tax support.
Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245K Work, Benefits & Business
- 600.6K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards