Benefits following death & savings

Dega55

Morning all, sorry if this is the wrong place for this but my 86 year old relative is very upset and kind of desperate for help.

Her husband (my uncle) died a month or so ago and she is now left trying to sort out her life and finances without his help. Before his death they managed fairly well from a financial standpoint but since his death everything has seemed to fall apart.

I will be very clear with what she has and doesn't have etc. and if anyone can give me some advice I would be incredibly grateful.

She has the following assets:

1. Her house worth around £200-£250k (this is a guess by me but probably fairly accurate)
2. £25k in savings and insurance payouts from my uncles death.

She had an accident in her 20s and has multiple constructive surgeries in her life reconstructing her legs, as such she is very disabled. She also has very bad breathing issues were she is out of breath within 5 yards, this was after a bit of a bad operation a few years ago in which she required a massive blood transfer.

At the minute I believe she is receiving just over £300 a week (£309?) from her state pension. She also has a Mobility car and a blue badge. That is the only income she receives. She received a letter that informed her this was going to drop to either £241 or £161 a week (apologies I cant remember her exact figure) from February.

This has sent her into a panic obviously as she cannot afford everything to live on that level of income.

I guess my question is, should she be entitled to a full pension with some level of disability allowance does anyone know, and are there any other benefits she is likely entitled too being a single person. Obviously she has the savings above, but they wont last any time at all if her money is reduced?

Thanks you for reading guys, appreciate any help you can give.

HillStreetBlues

On the info given, she is on a disability benefit but just for mobility which she exchanges for a car.
If she will get £241pw she won't get any more as that's higher than the £238 cut off and without a care component there is no add ons.
With £25k capital for pension credit there would be a deduction of £30pw as as anything above £10k there is a tariff of £1 per £500 (or part of)
£238-£30 = £208 , anything under £208 she would be entitled to pension credit to top up to the £208.
Her house is disregarded while she lives in it.

FrugaiMacDugal

Have a run through entitledto, might give you an idea of benefits available.

Keep_pedalling

No pension income from her husband’s pension?

KxMx

She can apply to her local council for single persons discount for Council Tax, which will reduce her bill by 25%.

Robin9

I assume she did the "Tell Us Once " form that will cover pension and the 2 council tax reduction.

Your aunt will want a lot of support over time - the utilities, insurances. Has she got her late husband's bank statements look for any standing orders and DD's.

Dega55

Thanks for the assistance guys, I am going to see her tomorrow to get to the bottom of everything (I hope). is there an easy(ish) way of find out what her current pension status is i.e if she is only getting the basic single person or if she has PiP or any other additions?

Thanks again.

Sherlock33

Look at what payments are coming into her bank account. State pension will be separate to any private pensions and any other benefits.

Does she still need the mobility car? Can she drive it or was she always the passenger? It might be worth considering if she would be better to give back the mobility car and start receiving the monetary value of the benefit instead to then use for public transport etc.

KxMx

State Pension itself doesn't have any disability additions.

Pension Credit is a means tested benefit. Entitlement has a cut off point according to income; PIP Daily Living increases that cut off point.

https://www.gov.uk/pension-credit-calculator

You can look at her bank statements to see which benefit payments are coming in and at what amounts, then use a calculator/internet search for further information if needed.

If there is no PIP coming in, this means she has swapped her PIP Enhanced Mobility award for the Motability car. Only she can decide if the car, or £240 a month into her account is better.

I'd recommend she gets help from AgeUK who can advise on many financial elements.

https://www.ageuk.org.uk/contact-us/information-and-advice/

pmduk

Please be careful with that pension credit calculator, I've always found the Age UK one to be far more accurate for elderly people with disabilities https://benefitscheck.ageuk.org.uk/Home/Start/. She might also want to consider Attendance Allowance, though it's not clear which disability benefits she is already receiving.

Spoonie_Turtle

https://forums.moneysavingexpert.com/discussion/comment/82151297#Comment_82151297

If she has a Motability car she is already receiving PIP or DLA (or the Scottish equivalent, if applicable). AA cannot be claimed alongside, it would have to replace the currently claimed benefit, and does not have a mobility component. She should not claim it, but can request a review of her current benefit if she thinks she should be entitled to a care component (or higher care component if she already receives a lower one).