Housing Benefits Inheritance

luckyme321

Hi everyone,

I am posting to help my brother who has serious mental health problems and will be inheriting half of a tenancy in common worth around 400K(once all deductions are made).

He is presently living in a HOUSING ASSOCIATION FLAT(in an expensive area of London) and is on Income Based Incapacity ESA and Council Tax benefit and housing benefit, so he doesn't pay any rent at all.

I understand he would loose all means tested benefits.

And obviously he would have enough money,from the inheritance, to buy himself a property.
So my first question is will he be forced out of his Housing Association Property as soon as the transfer of the income from the sell of the house goes into his account. Or would he able to stay in his Housing Association Property rent free ( or by paying rent) for a period until he finds alternative accommodation to move into. I am asking because he would have difficulty finding alternative accommodation quickly because of problems relating to his mental health. 

ALSO If he spent all the inheritance money from the sell of the house to buy himself a flat that is similar in size to the HOUSING ASSOCIATION one he is now living in -  would he be able to continue receiving his means tested benefits such as ESA, and Council Tax benefit because he is unable to work due to serious mental health problems. Or would they expect him just to move out of the Housing Association flat and use his inheritance to rent alternative accommodation, and live off the rest of the inheritance until it runs out? And then make a new claim once it does?

I am just wondering if spending ALL the inheritance money to buy himself a flat would be seen as deprivation of assets?

Thanks everyone. I would really appreciate any suggestions, answers and help received.

Alice_Holt

I am just wondering if spending ALL the inheritance money to buy himself a flat would be seen as deprivation of assets?

   No, IMO that shouldn't be viewed as deprivation of assets.

Presuming his main intention in buying a property is to provide a suitable home for himself - not to get means tested benefits reinstated.

   So my first question is will he be forced out of his Housing Association Property as soon as the transfer of the income from the sell of the house goes into his account. Or would he able to stay in his Housing Association Property paying rent.

    I can't see why he would be forced out of the flat. Housing Benefit will stop, but he can now pay the rent himself (as do many HA tenants). Check the tenancy agreement to be certain.  

 Do consider how upkeep / maintenance / service charges, etc  of an owned flat could be afforded.

Is he in receipt of PIP? 

theoretica

Alice_Holt said:

 Do consider how upkeep / maintenance / service charges, etc  of an owned flat could be afforded.

This - both affording and organising.  Also insurance.

He likely has security to stay in the HA property, but when his means tested benefits end, he will need to pay himself.

Rubyroobs

When the money hits his bank account his ESA and other means tested benefits would end. If he uses all the money to buy a flat then he would not be able to re-claim income related ESA it would need to be Universal credit. Not sure if there are any rules that mean the work capability result can still stand if benefits end for a short while.

sammyjammy

He should ask them to keep the claim open for credits only, this way his state pension record and his ESA status is maintained,  is it possible that there is a contribution based element to his ESA?  Has he ever worked?

KxMx

I've never worked, but because I got sick shortly after finishing education I claimed Incapacity Benefit on the old old system (under special youth rules). So when it changed to ESA, it was CB ESA with a IR top up (now New Style ESA +UC).

So there are other routes to CB ESA besides working, it's unfortunate that the award letters are so difficult to understand! 

TELLIT01

My advice would be for him to stay in the HA property unless he is forced to leave, which seems unlikely.  As a person with mental health issues he would seem to be a prime target for every rogue builder if he owned his own property.  In the HA property all he has to worry about is looking after himself, not all the additional responsibilities of home ownership.

HillStreetBlues

TELLIT01 said:

  As a person with mental health issues he would seem to be a prime target for every rogue builder if he owned his own property. 

That is a far too sweeping statement. Mental heath issues come in all shapes and forms. Without knowing the actual issue nobody can tell.

gwynlas

Money is not a barrier to being a HA tenant so he could just take on the responsibility of paying rent. Whilst he has mental health issues you do not say what these are. Might he benefit from a guardianship order? There must be many mental health service users particularly in London where capital growth means ordinary family homes are now worth 00 x 000 pounds. With thisamount of capital you need to be aware that he is at risk of being scammed or otherwise exploited.