ESA PIP inheritance means testing

[Neverendingdust]

Hi all, I’m hoping someone can help to clarify a few points for me.

A family member has recently been diagnosed with terminal illness, he was until May in full time work. Due to the diagnosis he is cashing in his pensions and will probably have around £60k as a lump sum, his life expectancy may be quite short so his wife would inherit any remaining funds. His wife can not work due to long term severe disability for which she receives PIP and ESA. For context they are also mortgage free.

After his death what will happen to her benefits? Are any of them means tested? How can we find out if her ESA is means tested? Could there be other help she may be entitled to? She may own the house but has no other income except benefits.

She currently has a mobility car, would she be able to buy herself a small runaround with the pension money and give the mobility vehicle back?

Pip isn't means tested but ESA is. Anything over £6,000 will reduce her money £16k will stop it completely.

If he was working up until recently , his wife would not be getting income related ESA, it will most likely be contributions based which is non means tested, as is PIP, so neither of those benefits would be affected by the 60k.

Contributions based ESA is not means tested.

She would also be eligible for bereavement support payments after he has died. Assuming they have no dependent children this would be a lump sum of £2500 and then monthly payments of £150 per month for 18 months. There would be no other entitlement to means tested benefits until her savings/ capital drop below 16k, then she could look at claiming Universal credit, assuming the ESA is contributions based.

Her ESA is absolutely not likely to be income related ESA as his full time wages would have made her ineligible for that and there have been no new claims for Income related ESA for some years, certainly not since may.

Yes he has always been working full time until very recently so the contributions based ESA would be the only option. Also her disability has been ongoing for at least the last 20 years.

She would continue to get the ESA indefinitely if she is in the support group which she likely will be, and PIP would continue until reviewed then likely continue if nothing has changed, so that could be up to around £1000 a month depending on PIP rates plus bereavement support payments for 18 months.

And regarding the motorbility vehicle, it would depend on the contract but if she stopped the scheme, then she would get the PIP enhanced mobility payment instead which is around £64.50 per week. I guess she would just need to dip into the savings if she does not have enough to live on.

Sorry for so many posts, but if the husband hasn't already claimed Contributions based ESA ( assuming SSP has ended ? ) and PIP himself then he should do that under special rules. A special rules PIP claim would take only 2-3 weeks to be awarded with a Ds1500 form from his consultant or Nurse specialist.

Thank you @Babyroobs most helpful information.

I’m not so sure she would need a car as he uses it to drive her around so that would certainly add to her pot. It’s a horrible situation because you want to focus on him but the biggest worry at the moment is what could happen to her financially.

Yes this has been sorted already by Macmillan. Thank you so much again!

My understanding is the government is moving all of the old benefits esa, jsa etc over to universal credit in the next 18months to two years. So whilst her benefits won’t be currently impacted they may be when she moves over.

She won't be moved over as her ESA is highly likely to be contributions based. As she will have savings over 16k she would not be able to claim UC anyway until it drops below 16k.