Left The House In My Late Mum's Will But My Sisters Refuse To Sell It-HELP!

missbiggles1 · 24 February 2016 at 12:01PM

jouef wrote: »

I would look into ways of using the capital without affecting benefits, such as main residence versus savings. Depending on one's attitude, this could be a means to either maximising benefits income or reducing dependence on benefits. Either way, could this be more sustainable than using the inheritance as a stopgap and resuming benefits when it's exhausted? Rigorous advice would be needed to comply with regulations.

Also, having used solicitors both to obtain probate and to settle the ensuing dispute, 10 or 20% of this estate could easily be taken in fees, maybe more.

A long time poster on here was in a very similar situation to the OP and she was told very definitely that, if she used her inheritance to buy a property (which is what I think you're suggesting), this would be considered to be deprivation of capital, even though it meant that she'd never need to claim HB again.

Sometimes the common sense approach isn't acceptable within the system.

fairy_lights · 24 February 2016 at 12:14PM

annbarbs wrote: »

But it is early days yet and we have got to give my sisters time to sort this out first.
If after 3 to 6 months the executors my sisters still have not done anything. Then we can take them to court but not now.

Because it has only been 5 weeks since Probate was granted. And we must first give my sisters time to get the house on the market.
And give them time to deal with the estate.

So what exactly is the problem then?
You know it's early days, you know they need time to get the house on the market. Your sister might be unhappy about having to move out but that doesn't mean she will refuse to leave or try to prevent you getting your inheritance.

jouef · 24 February 2016 at 12:15PM

getmore4less wrote: »

... indirectly housing benefits for rent subsidise the maintenance of the roof over your head, not so easy when you own.

Good point, and the OP seems disinclined to become a homebuyer anyway. Still helpful to know how things work though.

Gigervamp wrote: »

... With the amount of money you're getting, it should be kept in some form of high interest savings account, as you may be able to live on the interest ...

I think there will be significantly less left after legal costs.

missbiggles1 wrote: »

[using inheritance to buy a property] would be considered to be deprivation of capital

Thanks for the clarification. This area needs specialist advice, and it is necessary to consider and reject unsuitable options to arrive at the best option.

annbarbs wrote: »

My 2 sisters do not want to sell the house because my other sister who was living with mum before she died does not want to move out.

May I ask how you know this, if you do not have contact with them? It is not included in the information you had from their solicitor. Do you have information that they do not intend performing as fit executors (since they have not discussed an alternative course which would require your agreement)?

Gigervamp · 24 February 2016 at 12:17PM

missbiggles1 wrote: »

I'm no expert on savings but I thought that high rate interest accounts are paying around 3%, giving an income of around only £3.5k which won't be enough for the OP to live on, even with DLA on top. It'll obviously last her a bit longer than my back of a fag packet calculation if you take interest into account but I can't see how she can live without using her capital to live on.

I have no idea as I've never had that sort of money, but I do think it's important that OP gets financial advice for her own security.

System · 24 February 2016 at 4:27PM

Anna, when you do finally get your inheritence, I think you should go and speak to an independent financial advisor.

Well where can I find that?
I have Googled "financial advisor" and all that's coming up is Solicitors or banks. I don't think they give financial on savings.

System · 24 February 2016 at 5:14PM

I have just seen a page about Financial Advisers here on this forum.
http://www.moneysavingexpert.com/savings/best-financial-advisers#find
It seems like it's some kind of private service that you have to pay for.

But I don't think it's worth it as from what I just read some of these people just want to take your money.

I have mental health problems and cannot work. So when I get my inheritance I don't plan to do anything such as buy property or start my own business.

I just want to carry on as I am living in my Housing Association or maybe moving to another HA or private flat if I cannot get a swap through the HA and pay rent as a tenant.

So after the house is sold. I think the best thing for me to do is to go to my bank they have savings accounts that pay higher interest rates and can also advise on which account would be right for me.
And you can also have more than one bank accounts and most people do.

But of course my benefits would stop except for my DLA which I don't think is effected by savings according to this:
http://www.sunderland.gov.uk/index.aspx?articleid=7295

PIP and DLA are not means tested and not effected by how much savings you have.
So I should still get my DLA when I get my money from my mums house after it's sold.

But Both ESA and Housing and Council Tax Benefit are means tested and if savings go over £6000 those benefits are cut for every £250 you have over £6000 in savings.

Then if your savings are £16000 and over they are stopped altogether. And you won't qualify for ESA or HB and CT Benefit again until your savings go below £16000.
And you won't get the full benefit again unless your savings fall below £6000.
So if a person has for example £12000 in savings they will still get ESA and HB but the amount they get would be reduced.

But if the savings are £16,000 your ESA and HB as well as CT benefits is stopped.
The only thing you would get is your DLA or PIP.
But all other benefits will be stopped.
But if your savings fall below £16,000 you can apply for ESA and HB again but only when your savings go below £16,000.

Though obviously after my mums house is sold it is possible I might not get my 140k (114k from my mothers house and 25k of mums money she left to me.)
As I and my sisters will each have to pay both the estate agents fees for selling the house plus any legal fees to the solicitor.
As each sister including me will be eligible to pay these costs.
And these costs will be split between the 3 of us, we will have a pay a thirds of these costs each.

So even if I choose not to get my own solicitor and just deal with my sisters.
I will still have to pay my share of the fess for the estate agents and solicitor the executives, my sisters for selling the house. The same as my other 2 sisters will have to.

There may also be inheritance tax.
So at the end of the day I and my sisters won't take home the full 140k.
But even if I took home 90k that will last me at least 10 years which is quite a long time. But yes there will be a time when I will have to go back on benefits. I won't be able to live on my inheritance forever. But that won't be for a very long time.

Gigervamp · 24 February 2016 at 5:15PM

Have a read of this page from the Money Advice service.

https://www.moneyadviceservice.org.uk/en/articles/choosing-a-financial-adviser

It tells you what to look for, what rules a financial advisor has to follow etc.

Robin9 · 24 February 2016 at 5:15PM

Be more specific in your Google search and add the name of your town.

Then talk to 3 of them and see what they advise.

But its all too early to do that - there is a saying "don't count your chickens before the eggs are hatched"

As many have advised you have to be patient - executing a will takes time, selling property takes time

missbiggles1 · 24 February 2016 at 5:35PM

Gigervamp wrote: »

I have no idea as I've never had that sort of money, but I do think it's important that OP gets financial advice for her own security.

That's obviously good advice as long as she doesn't expect an IFA to know anything about benefits and the effect that income/capital will have on them.

missbiggles1 · 24 February 2016 at 5:38PM

annbarbs wrote: »

I have just seen a page about Financial Advisers here on this forum.
http://www.moneysavingexpert.com/savings/best-financial-advisers#find
It seems like it's some kind of private service that you have to pay for.

But I don't think it's worth it as from what I just read some of these people just want to take your money.

I have mental health problems and cannot work. So when I get my inheritance I don't plan to do anything such as buy property or start my own business.

I just want to carry on as I am living in my Housing Association or maybe moving to another HA or private flat if I cannot get a swap through the HA and pay rent as a tenant.

So after the house is sold. I think the best thing for me to do is to go to my bank they have savings accounts that pay higher interest rates and can also advise on which account would be right for me.
And you can also have more than one bank accounts and most people do.

But of course my benefits would stop except for my DLA which I don't think is effected by savings according to this:
http://www.sunderland.gov.uk/index.aspx?articleid=7295

PIP and DLA are not means tested and not effected by how much savings you have.
So I should still get my DLA when I get my money from my mums house after it's sold.

But Both ESA and Housing and Council Tax Benefit are means tested and if savings go over £6000 those benefits are cut for every £250 you have over £6000 in savings.

Then if your savings are £16000 and over they are stopped altogether. And you won't qualify for ESA or HB and CT Benefit again until your savings go below £16000.
And you won't get the full benefit again unless your savings fall below £6000.
So if a person has for example £12000 in savings they will still get ESA and HB but the amount they get would be reduced.

But if the savings are £16,000 your ESA and HB as well as CT benefits is stopped.
The only thing you would get is your DLA or PIP.
But all other benefits will be stopped.
But if your savings fall below £16,000 you can apply for ESA and HB again but only when your savings go below £16,000.

Though obviously after my mums house is sold it is possible I might not get my 140k (114k from my mothers house and 25k of mums money she left to me.)
As I and my sisters will each have to pay both the estate agents fees for selling the house plus any legal fees to the solicitor.
As each sister including me will be eligible to pay these costs.
And these costs will be split between the 3 of us, we will have a pay a thirds of these costs each.

So even if I choose not to get my own solicitor and just deal with my sisters.
I will still have to pay my share of the fess for the estate agents and solicitor the executives, my sisters for selling the house. The same as my other 2 sisters will have to.

There may also be inheritance tax.
So at the end of the day I and my sisters won't take home the full 140k.
But even if I took home 90k that will last me at least 10 years which is quite a long time. But yes there will be a time when I will have to go back on benefits. I won't be able to live on my inheritance forever. But that won't be for a very long time.

I think you should remember to apply the bit I've bolded to solicitors as well. They aren't your friends and they do nothing for nothing.

Left The House In My Late Mum's Will But My Sisters Refuse To Sell It-HELP!

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