Claiming Benefits and complications.....

firesidemaid

hello

i wonder if anyone can help me with a question regarding my parents?

they are both pensioners, rent their property and will be applying for Housing Benefit etc once their savings dip below the threshold.

but, reading another thread i just had a horrible thought about their situation that i hadn't thought of previously.

my grandfather's property was left in some kind of trust to my dad and his brother 5 years ago, with my uncle being allowed to live in it (documented in the will) until he no longer needed to. basically my uncle will probably live in the property for ever and there is no problem with that, but does my dad have to declare this in any way? will it count as him having a property/savings at all and prevent them getting any benefits?

many thanks in advance x

myrnahaz

I don't know whether he should mention it to the benefits office (and I'm not trying to encourage you to defraud anyone), it's just that your dad doesn't have any rights to the property until your Uncle decides to move (which may be never) ,so your Dad can't sell it or rent it or anything. However, I think it would be worth having some advice fron CAB or someone (or repost the question on the 'benefits' forum and see if anyone has any suggestions.

sandraroffey

the fact he cant capitalise on the property in any way, and maybe never, i wouldnt give it a second thought BUT the citizens advice is your best bet. they are worth their weight in gold.

insured

Firesmaid,
Your father, at the moment, only has a contingent interest in the house. That means that he only has entitlement to the house if something happens (the contingency).
Whilst your uncle still has the right to remain in the house, your father has no entitlement or interest in the house (unless of course your father gets paid the rent from the house)
As such this will not affect any means tested benefits. It will also not form part of his estate if he died before your uncle.
Although this will not affect any means tested benefits, I am fairly certain that on the forms that there is a section which asks whether he has any interest in any trust or settlement, and he will therefore have to declare this.
I am assuming that when your uncle dies or no longer needs the property, it vests in your father. If that is the case, when this happens, your father will have an asset or cash which he will have to declare for means tested benefits like pension credit, housing benefit etc. It will also form part of his assets for care home fees if that becomes necessary.
Your father could relinquish this interest, and give it to you or your siblings. However, if he does this solely to cliam means tested benefits, it will be disregarded.
It would need to be done for some other reason.

firesidemaid

insured, thanks very much for that - but you have now brought up another 'issue' that has been also sitting in my head for a while.

'it will also not form part of his estate if he dies before your uncle'. i have tried to discuss this with him for my mum's sake. i have taken another look at the solicitor's papers, but it does not really say much about the trust/terms of etc. i have asked him (my dad) to find out more, but am afraid he just sticks his head in the sand.

so, is this 'half' of the house my dads to do what he wants with or not? also, my dad does not have a will, just assumes it will go to my mum?

any more help much appreciated, thank you x

insured

Reading your second post when you said “half of the house”, I now think that your grandfather left the property outright to your father and uncle, with your uncle having the right to remain in the property for as long as he needs this.
This being the case, the house is actually in dad’s estate if he dies. However, the value of this will be minimal, given that your uncle is a sitting tenant. This will have to be declared on any means tested benefit application forms. Again however, the value will be minimal given that the house has a sitting tenant.
The will document will certainly have details of the terms of the trust/legacy, and needs to be explained. I can understand your frustration if you are worried about your parents, and dad is burying his head in the sand. If you have a copy of the will, could you not take it to a solicitor who would explain it?
If the will says that dad and uncle each own ½ but uncle has right to remain in there, then dad is right, it will pass to mum if he dies without making a will, or you and your siblings if mum predeceases him (subject to intestacy amounts)
If will says the house goes to uncle for life then to your dad, then a life interest trust has been created, and it depends on what the will says if dad dies before uncle.
Sorry I cannot be much more help, but really, I am guessing about what the will says here.

sloughflint

firesidemaid wrote: »

so, is this 'half' of the house my dads to do what he wants with or not? also, my dad does not have a will, just assumes it will go to my mum?

any more help much appreciated, thank you x

I remember you mentioning this before, OP. Forums are great for getting a feel about things but it's best not to rely on them for something of this nature when it is difficult to gauge the credibility of posters' comments.

Please convince your father to let you take relevant documentation to a professional as it's been preying on your mind.