ESA & Inheritance Question

HillStreetBlues

kaMelo said:

Unfortunately paying off a debt that is not immediately due can be classed as deprivation of capital under legacy benefit rules.  Replacing a kitchen and/or bathroom it's impossible to say how that would be viewed but paying for a funeral plan for yourself should be okay.  In all circumstances though it would be down to a decision maker.

Judgments from the UT do make it clear the monies such as from an inheritance isn't solely to be used on everyday spending.
I feel the bar would be the cost. Most kitchens units do have a finite lifespan so expected at some point to need replacing. So it would be reasonable for someone (claiming benefits or not) to get work done about their property if they came into some money.  
As long as it's an average cost then even if a DM doesn't allow it, I can't see a Tribunal upholding that decision.

RedWorry

kaMelo said:

RedWorry said:

8dayweek said:

The issue is more likely going to be Housing Benefit - this will end with Capital over 16k and cannot be reignited if and when you drop below again (even though you could get the income-related top up back on the ESA). 

So, I can’t claim Housing Benefit when I have less than. £16,000. I understand it stops with over £16,000 but surely you can reclaim when you have less than £16,000.

Bar limited exceptions (living in supported housing or being of pension age) once a housing benefit claim closes you cannot reclaim. Any help with housing would need to be claimed through UC.

RedWorry said:

8dayweek said:

The issue is more likely going to be Housing Benefit - this will end with Capital over 16k and cannot be reignited if and when you drop below again (even though you could get the income-related top up back on the ESA). 

Probably the best thing I can do is pay off my car PCP finance so I owe the vehicle as I am unlikely to be able to afford the payments in full when my relative is not here as they pay for half the cost. I do not think that can be classed as deprivation of capital.

Unfortunately paying off a debt that is not immediately due can be classed as deprivation of capital under legacy benefit rules.  Replacing a kitchen and/or bathroom it's impossible to say how that would be viewed but paying for a funeral plan for yourself should be okay.  In all circumstances though it would be down to a decision maker.

I’m not going to be able to continue paying for the car on my own as my relative pays for half the monthly cost currently, and without there help my only way forward is to end the PCP by either paying for the car in full or handing it back which will cost me at least £15,000 to get out of the PCP agreement early, if I didn’t pay this then it would affect my credit rating, so would be classed as an urgent debt.

The bathroom is definitely needed, and the process of going through the council for a DFG a long drawn out process so I can’t see a decision maker saying it was depreciation of capital. I’m in social housing currently. The kitchen is fine, just unpractical for my disability needs.

RedWorry

kaMelo said:

RedWorry said:

8dayweek said:

The issue is more likely going to be Housing Benefit - this will end with Capital over 16k and cannot be reignited if and when you drop below again (even though you could get the income-related top up back on the ESA). 

So, I can’t claim Housing Benefit when I have less than. £16,000. I understand it stops with over £16,000 but surely you can reclaim when you have less than £16,000.

Bar limited exceptions (living in supported housing or being of pension age) once a housing benefit claim closes you cannot reclaim. Any help with housing would need to be claimed through UC.

RedWorry said:

8dayweek said:

The issue is more likely going to be Housing Benefit - this will end with Capital over 16k and cannot be reignited if and when you drop below again (even though you could get the income-related top up back on the ESA). 

Probably the best thing I can do is pay off my car PCP finance so I owe the vehicle as I am unlikely to be able to afford the payments in full when my relative is not here as they pay for half the cost. I do not think that can be classed as deprivation of capital.

Unfortunately paying off a debt that is not immediately due can be classed as deprivation of capital under legacy benefit rules.  Replacing a kitchen and/or bathroom it's impossible to say how that would be viewed but paying for a funeral plan for yourself should be okay.  In all circumstances though it would be down to a decision maker.

I could kick myself as recently I turned down the offer of a property which would have been perfect for me, turned down because I’m too unwell to move and do everything myself as well as the worry of putting myself into debt to do the move. 

Seems I’d been better to put myself into debt, then used any inheritance to pay the debts off.

I seem to make stupid decisions! 

Jyana

Having had a think about this, and looking at the figures and info in your OP again, depending on when the dates of things fall you may actually find you won't get over the £16k limit. Depending mostly on the funeral costs, unfortunately, I think you may find that the cash in your parent's account, and quite probably some of yours too, could well be depleted by the time the LA comes through. 

Then there's the CoL payments from the last two years, if you have had your savings from any of that time then, of course, they are disregarded for life anyway (as long as you can keep it continuous saved). So if any that takes you over £6k at any point, remember to stress that it shouldn't be counted at all.

RedWorry

My relative has a pre-paid funeral plan, but I expect I will still need to spend around £2000 on other costs, given they are being cremated somewhere else away from where they now live, so I am going to have the expense of organising two wakes, one for those who attend the funeral in the town where it is happening and one, more a private party for there friends and neighbours who can’t travel to the funeral. Then there is the cost of adding their name to a headstone we already have. And there may of course be bills that need to be paid for them, certainly some expenses in clearing out the property as I am simply not well enough to do it on my own. 

Planning and paying for my own funeral should be straightforward as I am being buried with my mother, so already own the plot so to speak.

Sorry to sound so morbid, but all this has made me think of my own mortality and future.

HillStreetBlues

RedWorry said:

My relative has a pre-paid funeral plan, but I expect I will still need to spend around £2000 on other costs, given they are being cremated somewhere else away from where they now live, so I am going to have the expense of organising two wakes, one for those who attend the funeral in the town where it is happening and one, more a private party for there friends and neighbours who can’t travel to the funeral. Then there is the cost of adding their name to a headstone we already have. And there may of course be bills that need to be paid for them, certainly some expenses in clearing out the property as I am simply not well enough to do it on my own. 

That won't be your expense, that will come out of the estate as they have £5k in the bank, only monies remaining after everything is paid up becomes yours.

Jyana

RedWorry said:

My relative has a pre-paid funeral plan, but I expect I will still need to spend around £2000 on other costs, given they are being cremated somewhere else away from where they now live, so I am going to have the expense of organising two wakes, one for those who attend the funeral in the town where it is happening and one, more a private party for there friends and neighbours who can’t travel to the funeral. Then there is the cost of adding their name to a headstone we already have. And there may of course be bills that need to be paid for them, certainly some expenses in clearing out the property as I am simply not well enough to do it on my own. 

Planning and paying for my own funeral should be straightforward as I am being buried with my mother, so already own the plot so to speak.

Sorry to sound so morbid, but all this has made me think of my own mortality and future.

I felt exactly the same way, and I think it's natural. I also prepaid for my funeral in recent years as it's not counted as depreciation of capital and fine as far as the DWP are concerned. So I can't imagine they will have an issue with you doing that.