inheritance and social housing

[tegie]

Not sure if I am on the right site but here goes!

 

My husband and I are both 66 and live in a housing association bungalow. We both receive state pensions and my husband receives DLA at the highest level. My mother sadly passed away last November and I will be receiving an inheritance although I don't know how much as her estate is going through probate at the moment. I would think it would be between 60K and 90K but that is an educated guess.

 

At the moment we receive housing and council tax benefits but I know that will not continue once I receive my inheritance.

 

My two main concerns are firstly, will we have to leave our home in which we have lived for seven years when my husband became too poorly to work?

 

Secondly I have read a bit about "depravation of income" but am still confused. Will I be able to help my daughter financially by paying for things that need doing and also will I be able to put money into a trust or something similar for my two young grandchildren?

 

I would very much appreciate your advice on this as at the moment it is giving me sleepless nights particularly thinking we might lose our home.

 

Many thanks.

Edited March 2, 2017 by honeybee13
Paras.

[honeybee13]

Hello and welcome to CAG.

 

I don't know a lot about social housing, but do you have any paperwork from the housing association about changes of circumstances? Or their website may have information.

 

Deprivation of capital can apply to benefits or possibly to the local authority if they're asked to pay for your care later.

 

Are you claiming any benefits other than DLA, like housing benefit?

 

My best, HB

Edited March 2, 2017 by honeybee13
Addition.

[tegie]

Yes we receive housing and council tax benefits and know they will not continue after I inherit. It is mainly the house that concerns me.

[kayleigh89]

Contact them and ask

[AndyOrch]

The key function of social housing is to provide accommodation that is affordable to people on low incomes. Limits to rent increases set by law mean that rents are kept affordable.

 

Unlike in the private rented sector, where tenancies are offered by the landlord and letting agent to whomever they choose, social housing is distributed according to the local council’s allocation scheme. Since the Localism Act 2011, councils can decide who is or isn’t eligible to go on the waiting list for social housing. Out of those who meet the council’s criteria, legislation requires that certain groups be given 'reasonable preference'.

 

Speak to your Council and enquire how this inheritance will effect you...obviously housing and council tax benefits will cease but you can enquire with regards to the eligibility and whether you will have to move out or whether you can continue to rent.

 

Andy

[Lilypad1]

Hi there are certain things that you are allowed to spend it on so I suggest you google this and find out before you speak to them

 

It is very strict so make sure you do your research and declare everything

 

[stu007]

Hi

 

With the Housing Association check what your Tenancy Agreement says.

 

IMO your inheritance actually has nothing to do with the Housing Association but as you are aware it will affect HB & CTB and may affect other benefits so it is always advisable to check.

[Madamfluff]

Once you have stopped your HB and CTR you will no longer be on income based benefits as the state pension and DLA are not affected by inheritance, however if you also claim Pension Credit that will stop and you must inform them.

 

 

As for your housing, I personally would be very surprised if you lose your home, 60k - 90k may in some peoples eyes be too much for social housing, but as pensioners one of whom is disabled, I believe you would be classed as vulnerable, especially if you are in an adapted bungalow, lets face it, you would find it difficult to get anything in the private sector suitable for your needs, and depending on where you live even 90k when used just for rent will not last very long (about 7.5 years at a rent of 1k a month)

 

 

There are other considerations that I am not qualified to answer, one is that any income derived from your inheritance could have a tax implication when added to your state pensions if it means that you go over personal tax allowance which is £11,500 the same as a working person, Tax is a minefield so you need to take advise, also of course there could be a deprivation of asset issue if either of you need to go into a care home.

 

 

I would strongly advise that in the first instance you contact Age UK, even if at the moment you are unsure what sum will be involved they can talk you through some of the implications for both your income and your housing situation.

http://www.ageuk.org.uk/information-and-advice/ Put in your postcode to find your local office or ring the help line

 

 

Good luck and let us know how you get on

[Lilypad1]

Hi yes contact Age uk first. Make sure you get advice first before speaking to them this is VERY important. Age uk or CAB I'm sure both could help. You may be worrying now, but when you have all the correct info you will know where you stand and it won't be half as stressful. I am a serious worrier so know how helpful this is!