Deprivation of Capital rules
Muttleythefrog
Posts: 19,749 Forumite
Currently getting Income related ESA (Support Group) with underlying entitlement to Contribution based ESA. Also getting PIP enhanced Care/Standard Mobility. Have partner with no entitlement to public funds which should be lifted in just shy of 4 years when she'll be no longer subject to immigration control.
Considering moving to benefit the health of us both - but probably after partner no longer subject to immigration control to keep things simple and give time to plan.
To get home where we want is likely to cost almost double the value of current property owned. Funds for the rest have been offered as available at any time to make this viable. Naturally the issue then arises as to how the DWP/Local Authority would consider the issue of receiving gifted funds on the proposition that it is only offered in order to help purchase a home to live in. The advice in the decision makers guide seems to be fairly simplistic but clear where you sell and buy a similar value property or a lower one - there seems no advice for our potential circumstances where we could receive a large gift to cover the extra cost of buying a more expensive property than the funds released by existing home sale.
Naturally anything we do would be honestly declared in advance to the DWP with an expectation of them making a ruling on funds deprivation that we can then work with. But I wonder if anyone has advice in this respect and what they would anticipate a DWP/LA view to be. Needless to say there is plenty time for our circumstances to change in the meantime and the matter of deprivation may not end up being relevant but with a mind like mine I like to always see the future playing out.
Considering moving to benefit the health of us both - but probably after partner no longer subject to immigration control to keep things simple and give time to plan.
To get home where we want is likely to cost almost double the value of current property owned. Funds for the rest have been offered as available at any time to make this viable. Naturally the issue then arises as to how the DWP/Local Authority would consider the issue of receiving gifted funds on the proposition that it is only offered in order to help purchase a home to live in. The advice in the decision makers guide seems to be fairly simplistic but clear where you sell and buy a similar value property or a lower one - there seems no advice for our potential circumstances where we could receive a large gift to cover the extra cost of buying a more expensive property than the funds released by existing home sale.
Naturally anything we do would be honestly declared in advance to the DWP with an expectation of them making a ruling on funds deprivation that we can then work with. But I wonder if anyone has advice in this respect and what they would anticipate a DWP/LA view to be. Needless to say there is plenty time for our circumstances to change in the meantime and the matter of deprivation may not end up being relevant but with a mind like mine I like to always see the future playing out.
"Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack
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Comments
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Speak to a solicitor , maybe make it an equity share in the house rather than a giftEx forum ambassador
Long term forum member0 -
It can't be deprivation of capital as the capital is not yours.
Any gift is/should be disregarded for means tested benefits.
As long as you have an audit trial of where the gifted funds have come through and they never appear in your bank account , it shouldn't be a problem.0 -
It can't be deprivation of capital as the capital is not yours.
Any gift is/should be disregarded for means tested benefits.
As long as you have an audit trial of where the gifted funds have come through and they never appear in your bank account , it shouldn't be a problem.
The potential problem would arise if the funds for the house purchase passed through the bank account of the OP at any point in the transaction. If possible the additional funding from the 3rd party should be paid direct to either a solicitor, or the final recipient.
I think the likelihood of it being viewed as deprivation if the funds were transferred into, and out of, the OPs account in a matter of a couple of days, is low but it is always a possibility.0 -
You will find the solicitors can take all the money to pay the vendors, The person gifting the money will have to comply with all the anti money laundering rules and there maybe a small cost from the solicitor for the paper work. But it should never touch your account as all conveyancing solicitors have protected holding accounts. But this will only happen once contracts are signed.0
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Interesting.. thanks to all. I suppose the possibility... and practical reality.. of the funds going into holding account of solicitor directly from the person gifting as well as us... would be fairly compelling in arguing the specific purposes of the gift and the absence of any access to it otherwise. The possibility of an equity share also could be compelling possibility.. joint ownership. Yes... thanks for putting mind at rest... I'm sure there'll be a way... I better keep in touch with my old conveyancing chums and lawyers..lol"Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack0
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