Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Muttleythefrog
    • By Muttleythefrog 17th May 17, 3:56 AM
    • 9,958Posts
    • 18,418Thanks
    Muttleythefrog
    Deprivation of Capital rules
    • #1
    • 17th May 17, 3:56 AM
    Deprivation of Capital rules 17th May 17 at 3:56 AM
    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.
    Last edited by Muttleythefrog; 17-05-2017 at 4:02 AM.
    "Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack
Page 1
    • Browntoa
    • By Browntoa 17th May 17, 6:48 AM
    • 31,204 Posts
    • 36,900 Thanks
    Browntoa
    • #2
    • 17th May 17, 6:48 AM
    • #2
    • 17th May 17, 6:48 AM
    Speak to a solicitor , maybe make it an equity share in the house rather than a gift
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's and Discount Code boards which means I'm a volunteer to help them run smoothly and I can move and merge posts there. However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.
    • tomtom256
    • By tomtom256 17th May 17, 7:20 AM
    • 802 Posts
    • 1,480 Thanks
    tomtom256
    • #3
    • 17th May 17, 7:20 AM
    • #3
    • 17th May 17, 7:20 AM
    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.
    • TELLIT01
    • By TELLIT01 17th May 17, 7:58 AM
    • 3,566 Posts
    • 3,637 Thanks
    TELLIT01
    • #4
    • 17th May 17, 7:58 AM
    • #4
    • 17th May 17, 7:58 AM
    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.
    Originally posted by tomtom256
    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.
    • Stop Watch
    • By Stop Watch 17th May 17, 10:41 AM
    • 39 Posts
    • 98 Thanks
    Stop Watch
    • #5
    • 17th May 17, 10:41 AM
    • #5
    • 17th May 17, 10:41 AM
    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.
    • Muttleythefrog
    • By Muttleythefrog 17th May 17, 11:32 AM
    • 9,958 Posts
    • 18,418 Thanks
    Muttleythefrog
    • #6
    • 17th May 17, 11:32 AM
    • #6
    • 17th May 17, 11:32 AM
    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
    Last edited by Muttleythefrog; 17-05-2017 at 11:35 AM.
    "Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

134Posts Today

2,365Users online

Martin's Twitter