Buying a house

Nomis21

I receive Disability Allowance which allows 50,000 Euro assets and any property which I live in is not counted as assets.

My question is:

I arrange to buy a property for between 150K and 200K and I receive an inheritance payment after tax of less than 200,000 Euro and pay for and move into the property as soon as possible after receiving the money.

In this case scenario am I entitled to continue to receive Disability Allowance?

Gatling

You would have to inform the department of your change of circumstances and they will then highly likely review your claims with a new means test

Nomis21

Gatling wrote: »

You would have to inform the department of your change of circumstances and they will then highly likely review your claims with a new means test

Yes, without doubt of course that would happen, but my point is:

How are they likely to view it?

myshirt

Nomis21 wrote: »

Yes, without doubt of course that would happen, but my point is:

How are they likely to view it?

It is not entirely as straight forward as you ask, but the short version is you should be fine as long as it is necessary for you to buy this house to meet your needs, and you will live in it.

If you continue to hold the inheritance in cash form, then yes that would impact your payment.

Nomis21

Thanks Myshirt.

So if I decided to keep the inheritance in cash form and live from that money with no other income, and so lose the payment from the DA and also lose the Medical Card, would I also lose the Household benefits, and free travel pass?

Balagan

Nomis21 wrote: »

Thanks Myshirt.

So if I decided to keep the inheritance in cash form and live from that money with no other income, and so lose the payment from the DA and also lose the Medical Card, would I also lose the Household benefits, and free travel pass?

Best thing is to declare the money as soon as you get it. If you want to buy a home to live in (i.e., do not own your own home already) they will allow you a fixed period of time to purchase it. If after the expiry of the allotted time you still have the inheritance you will be means tested. For Disability Allowance the first €50,000 of capital is not included in the means test.

The formula for assessing means from capital for Disability Allowance is as follows:

Capital Weekly means assessed
First €50,000 Nil
Next €10,000 €1 per €1,000
Next €10,000 €2 per €1,000
Balance (any capital over €70,000) €4 per €1,000
http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/means_test_for_social_welfare_payments/how_to_assess_your_means_from_capital_for_social_welfare_payments.html

The household benefits package is means tested for those under 70. For the medical card, the amount of capital before means testing for a single person under 70 is €36,000 and then on a sliding scale.

sierra117x

Means decisions actually allow this to be factored in but you only have a limited time to find a property before the capital gets assessed against you. It's done on a case by case basis and at the discretion of a deciding officer. So declare it but unlike the suggestions in the previous posts you more than likely will be given breathing room.

TedKenny

sierra117x wrote: »

Means decisions actually allow this to be factored in but you only have a limited time to find a property before the capital gets assessed against you. It's done on a case by case basis and at the discretion of a deciding officer. So declare it but unlike the suggestions in the previous posts you more than likely will be given breathing room.

I may inherit an acre site and money in future. I would like to build a house on the site.

Does anyone have details about this, the time allowed, the capital limits etc?

splinter65

TedKenny wrote: »

I may inherit an acre site and money in future. I would like to build a house on the site.

Does anyone have details about this, the time allowed, the capital limits etc?

For DA they will disregard first €50000. the next €10000 they consider you to have €10 means per week, the next €10000 €20 means per week and every €1000 after that is worth €4.

You will have to put your housebuilding/buying plan to them in writing with a schedule and budget and they will consider it.

TedKenny

If I want to contact a deciding officer about this, do I contact the disability allowance central office in Longford or do I contact the social welfare office in my local town?

Nomis21

You contact the disability allowance central office in Longford.

splinter65

TedKenny wrote: »

If I want to contact a deciding officer about this, do I contact the disability allowance central office in Longford or do I contact the social welfare office in my local town?

Take my advice and write to DA section in Longford. They will write back to you fairly promptly. That way you will have a copy of correspondence between you and the Department.

TedKenny

What kind of documentation will they require if I plan to build a small house on a site that will be a gift from a family member?