Inheritance and ESA

Hi there,

I hope this is the right place to post my question (I'm new here!)...

I receive income related ESA as well as PIP (both components) due to having a severe form of CFS/ME which began in 1999.

I am going to inherit some money in the next 6 months. Although the details are uncertain (the estate isn't settled yet) the amount will exceed the £16,000 threshold above which means tested benefits stop.

I know that I will loose ESA but my question is this:

What will happen about National Insurance payments?

Can I use the money towards the purchase of a house (I live with my parents at the moment) and if so, how do I apply to the DWP for permission?

I've tried to phone the DWP but never get through. Due to my health problems I find it really difficult queuing on the phone.

I also asked the Citizen's Advice but they are overwhelmed with requests at the moment due to Covid.

I'd appreciate any advice please.

Many thanks, AC

Hi Angel Cake, this is a very frustrating situation and you are already onto doing all you can to deal with it.
I just want to say this for anyone else who knows that someone still alive is planning to leave them more than £6,000. A solicitor can draw up a 'Discretionary Trust' for anyone who gets higher rate PIP and probably some other benefits which mean they can be classed as 'vulnerable.' This means the person who inherits has not got direct access to the cash, so they do not lose any benefits. The trustees can then dish out the cash as they see fit for the person. As we have got two of these Trusts in our family I thought I would mention this option. One thing to be wary of though, is whether the Trustees will do the job as the person leaving the money intended. If not it could cause bitter argument. There is more info on .gov website but some of it is a bit complicated to read.
Hope this info will be useful to someone.
Denby

Hi Denby,

I really appreciate your reply, thank you.

In my case, my relative has already passed away and the money has been left to me, so the will cannot be changed.

I was looking for advice about dealing with benefits once I have the inheritance.

I'm just worried about how to follow all the rules when it comes to ESA. I know I will lose it but then there are so many rules (it seems) about how you spend the inheritance before you come back into the 16K threshold again!

Many thanks again, Ailsa

Hi Angel Cake

Have you checked to see whether a Deed Of Variation might help?

Hope you find a solution.

allamanda

Hi all, it definitely is worth asking the estate solicitors whether there is any possibility of a Deed of Variation [it changes a Will even after the death].
And as I have posted elsewhere recently, if you get cash that takes you off benefit, for goodness sake keep every single receipt for everything, eg pasting into an exercise book. This is to defend yourself from DWP allegations of mis-spending or 'notional capital'. If you fall into this trap as we did years ago it is very difficult to get out again, so proof of spending is a must.
Best wishes, Denby