Inheritance and on disability benefits..

[deathbycrayons]

Hi all, I've been on incapacity benefit for 4 years due to a long term illness. I also get lower care and lower mobility DLA. My son has cerebral palsy and receives middle rate care DLA. My husband gets carers allowance, we also get child tax credits, housing benefit and income support.

 

I have just inherited a large sum of money (£55000.00) and would like to know which benefits I will lose, who I have to declare it to? I obviously want to do the right thing and not claim benefits I'm not entitled to, but don't want to make unnecessary phonecalls etc. So can you please tell me do I have to declare how much exactly I have inherited, do I have to send proof, and which benefits will be affected?

[deathbycrayons]

Oh just to add, I've just completed a form for the ESA changeover and sent it back, before I knew about the inheritance.

[citizenB]

I will flag your query up for the site team

[Nystagmite]

DLA, incapacity benefit and carers allowance aren't affected. The tax credits are based on taxable income (£300 per year, I think is the taxable interest limit?) and not the actual capital.

 

When you're transferred on to ESA, you'll receive contributions based ESA.

 

So, your income support and housing benefit will be stopped.

 

When you phone up, do not assume (because it won't happen and is your responsibility) that departments won't talk to each other - they won't.

[deathbycrayons]

OK thank you, do you know if they will require proof of the inheritance, i.e. a photocopy of the cheque or a bank statement? So I don't need to phone DLA or incapacity benefit, or carers allowance, but we DO need to phone the council (re houseing benefit), income support and tax credits. I assume child benefit won't be affected so we don't need to declare it? Or do I have to make them aware anyway?

[acutetomato]

It's likely that there will be time limiting on cbESA from April 2012 for those not in the support group, so if put into Work Related Activity Group it is likely that one will need to be able to claim irESA after 12 months and the capital limit would apply at that point.

[deathbycrayons]

Sorry what support group?

[Nystagmite]

When you go on to ESA, you're either found fit for work, (no ESA entitlement) put in the work group (they think you'll be able to work at some point in the future) or the support group. (very unlikely to be able to work, ever)

 

Child benefit isn't income based; so no need to tell them.

[deathbycrayons]

So if you're severely disabled, you have to attend a support group?!

[antone]

So if you're severely disabled, you have to attend a support group?!

 

No, nothing like that. It's just the term used for that particular type of ESA - you're in the group of claimants awarded the Support Component of the benefit. No meetings or groups required.

[Nystagmite]

But you can take part in the meetings (I think it's work focused interviews or something) if you want to.

[antone]

But you can take part in the meetings (I think it's work focused interviews or something) if you want to.

 

Yes, indeed. They're Work Focused Interviews and those in the Support Group can participate if they wish, but will not be sanctioned if they choose not to.

[Surfer01]

Please which ever way you do it make sure it is writing and sent registered mail to the appropriate departments for ESA and Housing and CT. If you are on ESA, I don't think you can claim carer's allowance. I think you are allowed to keep the first £16,000 in savings without being penalised on housing and council tax and then it is I think £1 for every £250 above that amount. There is info on this on the gov website but trying to find it is a nightmare. If you spend the money too quick it will be deemed as if it was still in your possession.

[Nystagmite]

I think you are allowed to keep the first £16,000 in savings without being penalised on housing and council tax and then it is I think £1 for every £250 above that amount.

 

After £16k, income based benefits stop.

[Surfer01]

Thanks. Seems like the only benefits that the OP can retain are DLA although contribution based ESA can be claimed, but not income based ESA.

[Nystagmite]

Can also keep Carers Allowance, child benefit, tax credits (which is based on taxable interest and not the capital) and incapacity benefit.

[Surfer01]

When my wife had to apply for contribution based ESA. she lost her carer's allowance as you cannot have the two together as they overlap. You get Carer's allowance but not the payment. I am on Pension credit and the wife is on ESA but has been told that she cannot claim carer's allowance also as she is claiming ESA. See here

Edited December 27, 2011 by Surfer01

[Nystagmite]

The OP is the one claiming IB (soon to claim ESA) and her husband claims the Carers Allowance.