Mum received inheritance but is on ESA & PIP

[FullofSurprises]

I need some help regarding inheritance and wondering if someone can point me in the right direction.
My mum has come into inheritance after her lifelong partner passed away and left her in his will.
She has long term illnesses and has been on ESA and PIP for quite some time.

Originally she wanted to just gift me the money as she did not want to lose her benefits but we've found out today it's not as simple as that, and that even she were to give the money away she would still be classed as having the money.

How can this be right? She never asked to be on his will and I know she would never have accepted this had she of known this would be the outcome.
She is worried now and really doesn't know what to do.
Does anybody know a way around this?

@FullofSurprises I'm so sorry to read about your mum's current illness (and everything that has gone before). I can't offer any advice but wanted to send you and your family good wishes.

I’m so sorry to hear about your mum.

some of us do understand.
hope she feels better soon. and all the best to you too.

Sorry to hear your update. You can PM me for advise if you like. I deal with this sort of thing at work all the time.

Gosh I’m sorry to read this. I saw your thread last time around. I hope your mum improves and is able to enjoy her inheritance.

Oh no. I hope she recovers quickly.

I'm sorry @alexdgr8 it wasn't directed at you. I know some of you have been so helpful on here, what a shit year it's been though. Thank you all for your kindness, I know she'll get through it.

Thinking of you OP - I have zero knowledge so haven't posted at all but do remember reading this thread a while ago.

Playing devil's advocate here.

I can understand people saying that if she has this money she should not be claiming benefits. But we do not know the full extent of your mother's mental state. Reapplying would make the most mentally stable of people stressed. I understand that the country doesn't have the money to support those who can afford to support themselves. On the other hand, why should someone who obviously worked hard (your mother's partner, not be able to leave money without consequences?

So, I would say, could she not decline the money so the sister takes it all? (whether your mother gains this money some way or another is irrelevant). How likely is it that DWP will check this particular will and see your mother named on it?

And my other point, please whatever you do, DO NOT get involved in shared ownership! She will never own anything. She'll be lining the pockets of others, service charges and ground rent could become astronomical. Stay well away.

[quote FullofSurprises]@JamieLeeCurtains there's no way I can buy one for her, I haven't even bought a house myself yet. Is it not possible for her to use the money to purchase her own flat? Or would that be seen as spending it too quickly?

Just to quickly clarify so she can stay on ESA even if it goes down to zero? That will just stay like that until she is reassessed? [/quote]
I have never known the purchase of a home to be regarded as intentional deprivation of capital and I have over 13 years experience of advising on benefit matters. I often advise clients who have received a divorce settlement to use it to buy part of a shared-ownership property and, afaik, this use of capital has never been challenged by DWP (providing, of course, that they live in in the property they bought).

Other things that generally go unchallenged are paying off any debt, purchase of a car or a holiday, as long as it is not extravagant, replacing furniture, carpets or household goods, and holidays, as long as they are not extravagant.

However, the deprivation regulations are vague and DWP decision-makers have a considerable degree of discretion. I have won several appeals on deprivation of capital issues.

If your mother was originally on contribution-based ESA (CB-ESA), she may still have entitlement despite her capital. CB-ESA is not means tested so capital is not taken into account.

CB-ESA is payable for a year, starting from the first day of the claim. Any period when she was in the support group does not count towards that year. This means that someone who was placed in the support group from a date within 365 days of a CB-ESA claim can continue to receive ESA throughout the period they remain in the support group, regardless of how much money they have.

If your mother was placed in the support group during the first year of a CB-ESA claim, she will continue to be eligible for the basic allowance plus the support component. However, if she is getting the severe disability premium as well, she would lose this (I think), as it is a effectively a means- tested addition and capital limits apply. (CPAG handbook, 20/21 edition, p656).

And if she can't stay on CB-ESA she can ask for her claim to continue on a contribution-only basis to preserve her NI contribution history and pension rights.

If your mother is getting housing benefit as well as ESA, she will need to tell the council when she gets the money, as HB is also subject to the same capital limits as income-related ESA.

Hope this helps.

So sorry, OP, failed to read the last few posts.

I hope your mother is recovering.

And should she opt to take an annuity rather than the lump sum, this would count as income and her ESA (or UC, if she has to make a new claim) will be reduced by the amount of the income (less a small disregard). How opting to take an annuity would be regarded, I have no idea, I'm afraid.

Thanks all. I know this is a late reply. Mum had ECT done as she became catatonic. She has now fully recovered and discharged back at home. She was in hospital for 4 months.
She is now thinking much more clearly and has chosen to take lump some and forfeit her benefits. She wasn't in any place before to make this decision and I think she was actively trying to avoid anything to do with it as it was from her long term partners estate, she's only just started to accept that he's gone.
Anyway, what a journey it's been.

Thank you all so much for all of your advice it has been invaluable.