Inheritance affecting ESA?

NaomiR

if someone inherits a property (that they intend living in so will not provide an income) are they still able to claim ESA as they’d still be unable to work and financially no better off?

HillStreetBlues

When would they start to live in property?
It's only income based ESA (or any income add ons to contribution based) that inheritance could affect.

NaomiR

They’re living in the property now, renting (private rent with housing benefit) how do we know if it’s income based ESA?

Keep_pedalling

NaomiR said:

They’re living in the property now, renting (private rent with housing benefit) how do we know if it’s income based ESA?

HB should cease as they should no longer be paying rent.

HillStreetBlues

The DWP doesn't make it clear in their letters, the amount can be of guidance or their tax records.
Normally HB isn't paid to family members so they might look into why the property was inherited.

NaomiR

no you’ve misunderstood they’re renting now from family member but stand to inherit property under family members will, they obviously won’t claim housing benefit as there will be no rent 

my question about ESA remains, we understand how housing benefit works 

Spoonie_Turtle

NaomiR said:

no you’ve misunderstood they’re renting now from family member but stand to inherit property under family members will, they obviously won’t claim housing benefit as there will be no rent 

my question about ESA remains, we understand how housing benefit works 

Nothing will change for the ESA. 

It would only be if they inherited a property that they didn't live in, that capital would be an issue for any means-tested ESA.  Which is not the case here.

TELLIT01

The alarm bell that rings for me is that they were previously renting the property from a family member.  Unless they were paying the full market rent and had a proper rental agreement etc, there may be questions about their actual entitlement to HB in the first place.

poppy12345

Were housing benefit aware that they were renting from a family member?

HillStreetBlues

NaomiR said:

no you’ve misunderstood they’re renting now from family member but stand to inherit property under family members will, they obviously won’t claim housing benefit as there will be no rent 

House benefit should only be paid if it's based on a commercial agreement. So if the rent doesn't get paid the landlord would evict them for non-payment, just like any other tenant.
So the council might look to recover HB as they could say it would have been unlikely to be evicted from a property that would be  inherited, so classed as a contrived tenancy.

NaomiR

Renting from a close relative is permissible provided relative doesn’t live in the same property, rent is due as per lease agreement which is submitted to DWP to apply for Housing Benefit.  Rent covers current mortgage which would be paid up on death of owner so current HB claim is indeed valid and going directly to landlord/relative with shortfall (HB does not cover full rental amount)