Claiming Esa NI credits

dp1

Hi I have posted similar before, but can't find my original post…Spoonie Turtle you replied and advised me to ask again.

My mam and dad are now living in a care home, and their home which is owned by my 2 brothers and myself is in the process of being sold, we have accepted an offer. My share will be almost £50000. I have Long Covid, work 14 hours and receive Universal Credit with LCWRA.

So I can apply for NI credits ESA, which keeps my LCWRA status, but what exactly do I do to claim this and when? Do I do it now, before I get any money or would that make my Universal Credit payments stop?

My NI records show that I have made full contributions to get my state pension, 8 years to go though.

When I do get the money do i have to declare it or do I just close my UC claim? In which case when is the best time to do this, is it just before I get my next UC payment?

Also…last question, am I allowed to use some of the money for dental work or would that be DOC?

Thanks to anyone who can help, I'm finding all of this very confusing

NedS

I cannot answer the ESA questions, so will leave that for others.

You should declare the capital / close your UC claim on the date that the house sale completes.

Regarding the dental work, DoC is only an issue if you think you may need to claim means-tested benefits again in the future. At that point they will look at what you have spent your £50,000 on. If you've had essential dental work carried out then that's fine, but if you have paid for expensive cosmetic work (teeth whitening etc) then a decision maker may view that as deprivation of capital. I trust you understand the distinction?

Please tell me that mum and dad didn't give the house to you and your two brothers at some point to try to avoid care costs?

You say you own a share of the property, but mum and dad lived in it and it's now being sold as they have moved into care (sorry to hear this). How long have you owned a share in the property and did you live in the property during that time? The reason I ask is that if you were not living in the property with mum and dad, there will now be Capital Gains Tax due on the gains you have made during the period you've owned your share.

HillStreetBlues

Personally I think any dental work would be fine, to make a leap that it was done intentionally just to reduce capital, I feel is a bridge too far.

huckster

I think you can claim New Style ESA based on NI contributions over previous 2 tax years, on the basis you are trying to protect contributions based benefit entitlement and LCWRA. Probably easier to make the claim by phone call, where you can explain reason for claim and ESA will note it being a dual claim as you currently get UC.

While you have UC and ESA, any ESA benefit paid to you separately would be deducted from UC as other benefit income. When you receive your share of the equity from house sale, you then report this to UC and ask to close the claim as you have more than £16k in capital. ESA will just continue as a standalone benefit, where your savings are not relevant.

dp1

Thank you for your replies, I'll ring to claim ESA next week. I am expecting to have to apply for Universal Credit again, at some point, before I get my state pension.

Apart from the dental work, I am only planning to replace some furniture and appliances and some gardening work, also to pay off about £5000 owing on a credit card. I am aware I can't suddenly spend it all on a holiday!

Can I pay any of it into a small private pension I have, or would that count as savings?

huckster

With ESA and earnings. There is a permitted work earnings limit. You cannot earn more than £203.50 per week on average and receive ESA.

Money in a pension does not count as capital for UC.

kaMelo

My mam and dad are now living in a care home, and their home which is owned by my 2 brothers and myself is in the process of being sold, we have accepted an offer.

There is so much to unpack in that sentence, especially with both your parents now living in a care home. There is potential for deprivation of assets or capital gains tax. I hope all was done correctly and your parents didn't just 'give' you their home and continue to live in it rent free,

.

https://forums.moneysavingexpert.com/discussion/comment/82080443#Comment_82080443

I see what you did there.