Universal Credit Capital and Inherited Property

Just wondering if someone could advise please. I am on universal credit and am self-employed, declaring my earnings and expenses every month. My Mum sadly passed away without leaving a will, so the estate will eventually be distributed between myself and my two sisters. We have recently completed the probate process and been granted the Letters of Administration.

Since then, we have also received a letter from DWP regarding Mum's claim for Pension Credit, as it looks likely she was overpaid this, so we have been alerted not to distribute any of the estate. Mum owned a property (her home) that wasn't maintained for a long time, due to ill-health, so to secure and protect the property, we have been using money that Mum left in her bank account to pay for essential work on the property, such as getting it re-wired to up-to-date standards, getting a new boiler fitted (the previous one hadn't worked for years and Mum refused to allow anyone access to replace it), replacing the double-glazing (many of the old frames were rotten and in danger of the windows falling out). The kitchen is also having to be completely replaced as lots of the wooden units were mouldy or rotten, due to damp and no heating in the property.

Now that the Letters of Administration have been granted, I need to know where I (and one of my other sisters, who also claims UC) stand with regards to the date at which we have gained the additional capital of our third share of the estate. We thought it would be after all the debts are settled so that we have a better idea of how much our share will be, after the possible overpayment of the Pension Credit is paid back, and using a new valuation of the house. But there may not be enough in the bank account to meet this debt, as we have been having to also pay expensive house insurance (due to the property not being occupied), as well as funding the essential repairs on the property. So the Pension Credit debt may not be paid back until after the house is sold.

We have kept meticulous records of all the expenditure and have spent nothing on ourselves yet, as we still view the property and bank balance as belonging to Mum until all the estate is completely settled. We understand that the property value classes as capital for UC purposes, but we're just not sure at what point exactly this capital needs to be declared as having been passed to us, as it is still undergoing renovation and will then likely be put up for sale. Upon sale, there will be the as-yet unknown amount of Pension Credit debt to settle, as well as a legal debt against the property, so we wouldn't even know how much to declare our capital has increased by. Could someone advise please at what point we are actually classed as having acquired this additional capital for UC declaration, and how to value it?

Thank you.

Thank you for that very helpful reply That's helped set our minds at ease. I've also changed my profile name on here as you suggested, so would you please be able to edit your reply so that my full name doesn't show?

Many thanks for your help