Inheritence and benefits.
Comments
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If the house belongs to your sister, then she cannot just let a family member live there rent free, whilst still continuing to claim benefits.0
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forgotmyname wrote: »What if the house was not sold? Would they expect the person living there to pay rent? eg a family member living there and taking care of the place whilst they themselves save to buy a property?
Is there an issue with my mum putting our names on the deeds now?
The property would be suitable, its just the location, its miles from anywhere, and if she is on benefits then the travel costs will be an issue i think.
I'm not sure what you mean in your first paragraph? Do you mean if your sister owns the house and someone else lives there? For benefits purposes the value of the house would be counted as capital. If it would be more than 16k your sister wouldn't be entitled to means tested benefits.
There are several issues with putting your names on the deeds. From your sister's point of view she'll be treated as having the value as capital, which if over 16k would stop her benefits. From your mum's point of view if she needs to claim benefits or go into a care home she could be deemed to have done it to deprive herself of assets and be treated as if she still owned the whole house.
Could your mum not just split the assets between you and your sister and your sister buy somewhere that's in a more suitable location?Unless I say otherwise 'you' means the general you not you specifically.0 -
Sister cannot buy anywhere with the money, the property is not worth that much and take away the fees to sell it wont leave enough to buy a run down studio flat anywhere near where she lives now.
oldhand, i know what you mean, but the cynical side of me just has that nagging feeling.
NLW i know this is not a cheat the system forum, if i wanted to do that i would ask you or your local MP.
It seems its OK to inherit £600,000 and pay no tax, but not inherit your parents house which is less than 1/6th of that.Censorship Reigns Supreme in Troll City...0 -
Bottom line = She moves into a house she may not be able to afford the upkeep, or she takes the money and loses benefits until its spent?
Or i get everything and give her pocket money?Censorship Reigns Supreme in Troll City...0 -
Couple of things inheritance tax is a matter for HMRC your sister has to abide by DWP rules so really your question about someone getting 600k and no tax is irrelevant
You say your Mum is only in her 60s I am 61 and not looking to pop my clogs just yet, so your Mum could have 20 odd years left, what is your sisters health issues that make you assume she will be on benefits for the next 20 odd years and if she is long term sick or disabled have you looked into PIP.
And again you have to realise that your Mums assets can and will be used to pay for any care she needs so you might not inherit anything anyway.
if you were to give her 'pocket money' she would committing benefit fraud as all money has to be declared for income based benefits.0 -
forgotmyname wrote: »
It seems its OK to inherit £600,000 and pay no tax, but not inherit your parents house which is less than 1/6th of that.
That law applies to you as well.
You won't be liable to pay any Inheritance Tax on the house either.
I presume sister would rent or go for shared ownership or Help To Buy etc.Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.0 -
And again you have to realise that your Mums assets can and will be used to pay for any care she needs so you might not inherit anything anyway.
if you were to give her 'pocket money' she would committing benefit fraud as all money has to be declared for income based benefits.
The latter is untrue. Family members can give gifts. Only capital over £6k can stop/reduce a means-tested benefit claim.
The former may happen. Although again it depends on circumstances.
I do wish people wouldn't state that all those who own their own home may end up having to use it to pay for care home fees.
It depends how physically ill they are and in need of care.
My Grandad owned his own home, but 'cos of his dementia, diabetes & inability to walk unaided, he was given an NHS certificate which exempted him from care home fees.
He still stayed at home for 2 years following that - with carers visiting twice daily - as that is what he chose to do and only lived in a care home for the last 12 months of his life.Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.0 -
My mum didn't need a care home either, she died at 52 in a hospice. I think it's prudent to take into account the sister's circumstances when the mother is planning her will.
OP, there are other options for home ownership, such as shared ownership (she'd be able to claim housing benefit for the rent portion).Unless I say otherwise 'you' means the general you not you specifically.0 -
The latter is untrue. Family members can give gifts. Only capital over £6k can stop/reduce a means-tested benefit claim.
The former may happen. Although again it depends on circumstances.
I do wish people wouldn't state that all those who own their own home may end up having to use it to pay for care home fees.
It depends how physically ill they are and in need of care.
My Grandad owned his own home, but 'cos of his dementia, diabetes & inability to walk unaided, he was given an NHS certificate which exempted him from care home fees.
He still stayed at home for 2 years following that - with carers visiting twice daily - as that is what he chose to do and only lived in a care home for the last 12 months of his life.
Sorry its something that people must consider certainly at my age when it could happen in 10/20 years, there is no benefit in hiding your head in the sand and thinking it wont happen to you
I would suggest the Ops mum has a look at this
https://www.saga.co.uk/magazine/money/personal-finance/giving/the-rules-around-giving-money
Yes you can have savings but it has to be DECLARED when those savings are added to all change of circumstances have to be reported , I work with a charitable trust we can give personal payments to people on income based benefits, but these cash gifts can affect the amount of state help a person gets which is why some people wont accept the money its a shame but those are the DWP rules.
Having extra money in savings or current accounts can trigger a compliance check at the very least and the worse case scenario is an interview under caution and the DWP can check0 -
Savings over £6k do, yes.
But not if eg you have £3k and it increases to £3.5k.
It's just nonsense to imply this. It reminds me of some on here who suggested that Jobseekers should declare betting wins, reward points and cashback. It really would result in comedy queues out the door with JCP staff unable and unwilling to fill in a form for each £50 win at Newmarket or £10 scratch card win.
Compliance checks: again if it went above £5.5k- yes, might happen.
[Incidentally, 'Change of Circumstances' has a meaning in social security law. Most forms will usually list a dozen things that would be deemed a material change affecting their entitlement, from having a baby, savings going above £6,000 and so on. The Upper Tribunal has ruled on what is and isn't deemed a change, in the same way they have on 'Good Reason' re sanctions. It doesn't mean ANY change eg if your dog died so you have more spare cash, or you won a £1k tv etc. I'm sure you realise this - but the way you have posted could lead others to think they have to report any change in their circumstances which they do not]Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.0
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