Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.
May I ask if the person from whom you are expecting an inheritance is still alive or have they passed away please?
Hi My granfather passed away and left the inheritance to my mother. My mother has given me a loan of 29k to help me buy an apartment in spain. I was on pip disability of £56 a week, I also get housing benefit and ESA of £114 every two weeks. I have to pay my mum back by monthly payments. Due to my health i want an apartment in a warmer climate. What are my rights and how do i proceed?
Thank you. I am sorry to hear of your grandfathers passing. Based on what you say do I understand correctly that it is your mother that has received the inheritance rather than you or have you also received an inheritance from your grandfather?
No it is my mother
In these circumstances providing the money your mother has given to you is a loan and not a gift the loan should not reduce your benefits. If the money was a gift then this would be treated as capital owned by you and you would be reassessed for any means tested benefits but a loan creates a debt so you are not considered any better off. However because the loan is from a family member it is important that there is no possibility that the benefits office could claim that the money is a gift and not a loan.
Therefore it is worth considering ensuring there is a written agreement between you and your mother about the loan - i.e. how much has been lent, how much the repayments will be and when and any interest charged and to ensure you stick to the terms
As above if you receive any gifts from your mother that increase your capital then this will impact any means tested benefits you receive as you will have to declare the gift and this may result in a reassessment.
Finally if you are moving to Spain it is possible to continue to receive UK benefits but you should ask for an appointment at your local jobcentre to discuss the position so they know of our proposals and you understand the position regarding your benefits before you commit to a move - for example UK job seekers allowance is not normally payable for more than 3 months after you leave the UK and only then if you ensure you properly register before you leave.
ok thank you. I am also interested in purchasing a property abroad and have seen a property of interest. Could you advise on that?
A pleasure. If you are looking to purchase in Spain you would need advice from a Spanish lawyer. There is a Spanish law section available through this site if you would like to intiially post a question there?
Is diabability pip tax free? Does this money from my mother effect that?
ok i will do thanks
No income tax is presently payable on these payments though there were noises being made that the goverment may look to change this in the future. No changes have been made to my knowledge to date though.
A pleasure. I hope all goes well in your move.
If I can assist any further as the situation develops please do not hesitate to revert to me
If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though
Hi Could you help to write an agreement?
For a loan?
For the loan agreement with my mother. Or should i just write one myself?
I would be very happy to though unfortunately I would need to charge a separate fee to do so as it is quite a substantial job to prepare on professionally. A fee of around £60 should cover the time. Alternatively you can write out a clearly worded agreement between you and this should be sufficient prviding it is clear between family members. Do let me know how you would like to proceed.
ok no worries. I will write it up myself. thank you
providing you write the agreement clearly and ensure the above elements are all mentioned and include your and your mother's full names and addresses, make two copies in each sign both copies retaining one each, a self written agreement should be fine in the circumstances
thank you very much
am i entitled to my disability living payment abroad?
Yes but you must ensure you make an appointment through the Job Centre to ensure you continue receiving benefits abroad