What counts as capital

jeanburton

I retire in Oct and need to claim benefits. I have £20.000 belonging to my mother in my name. Is there anything I can do with it so that it doesn't stop my claims. (Apart from giving it back)
Thanks Jean

exil

Sorry, does this money 1. belong to your mother or 2. has she gifted it to you?

If 1 it's not part of your capital until she passes away. If 2 it is part of your capital.

If you are going to claim pension credit the 20k would reduce it but you could still get some - if income support (up to age 60) it would be enough to stop you getting it at all

Be_Happy

Again, not sure what you mean, but if the money is absolutely in your name with no reference to your mother, then giving it back will have no effect. You will be treated as giving away your capital deliberately and this will be calculated when you claim benefits.

Dealwithit

For most benefits you are allowed £6000 in capital before it affects your claim.

anything over £6000 up to £16000 and it is then means tested.

exil

For pension credit there is no upper limit. The amount of capital still lowers your pension credit but it doesn't stop at 16,000

jeanburton

The money belongs to my mother. It is in my name and she is a signaturie on the account. The money won't be mine untill she dies and then in her will iI get half my sister gets the rest
Thanks for prior comments
Jean

exil

In which case it's her money and not part of your capital

If she was to pass on, which we hope is a long time off, then any money you inherit would affect your benefit

seven-day-weekend

I was under the impression that if the money is in your name, then legally and for State Benefits purposes it is classed as your money.

I think it should be in an account in your mother's name if it is her money.

exil

Sorry - I've become a bit confused by this situation! How can it be "mine" if it also belongs to mother? Is it a joint account?

Errata

If someone has money in a bank account and they're paying tax on the interest it will be pretty difficult to put a convincing case that the money belongs to someone else.