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Current ESA Support Group & PIP Claimant - Due to Inherit a Third of a Property


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Hi, I'd really appreciate if anyone can help me.

I am currently claiming income-based 'ESA Support Group' and 'Daily Living' and 'Mobility' PIP.

My step-father has died and I have been named as a beneficiary of his house, which will be split in equal shares amongst me and my two step-siblings. He re-married (my own mother died some 13 years ago) and the will gives his widow a right to occupy the house subject to certain conditions (keep in reasonable repair/do not remarry or cohabit etc).

The legal position is that my step-brother will hold the house on trust for us and my other step-sibling, with the widow having a right to occupy until she decides to move out/dies/breaches the trust (e.g. remarries or house falls in to disrepair). When this right to occupy ceases, the house will then transfer to us.

I understand my PIP wouldn't be affected as it's not means-tested. Am I right in thinking that my only hope to keep ESA would be to declare capital to the DWP and hope it is disregarded as it is occupied by 'family' (I doubt a later wife of my step-father would even be classed as that)?

I only live in a shared rental property with housemates and claim housing benefit, so all this has come as quite a shock! Many thanks

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In regard to income based benefits such as ESA and Housing Benefit, any share of the equity in the house, would not become available to you until widow dies and relevant legal process have been followed.

So at the moment, you would not need to advise either ESA or Housing Benefit, as the equity in the house is not in your name yet. It is held in a trust arrangement with nothing in your name in regard to land registry registration of the property. 

The point where you would need to tell ESA and Housing Benefit is when you get a letter through the post probably from Solicitors telling you that following the death of the widow, the person acting for the trust has taken steps to transfer the relevant share of the property to you.  Most likely, the house would then be put up for sale and when it sells you would receive amount due.

I have pretty much ruled out possibility of widow being removed due to disrepair as that would be unlikely. Legal costs and family being asked for funds to repair might be a barrier. The problem is more likely the person goes into a care home and the property becomes empty for years. Then the family have a house to look after.

 

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