Effect of proceeds from selling home on benefits and pension credit

LPB83

Hi

I was wondering if someone could offer some advice regarding the effect of proceeds from selling a home on benefits and pension credit. The situation is as follows:

- Two years ago, "person A" (over 65) was no longer able to look after herself and moved into her daughter's home, leaving her own home empty. She currently receives disability and carer's allowance and also pension credit.
- Person A now sells her own home for proceeds of £60k, wishes to give this money to the daughter who she lives with and as such has the cheque paid into her daughters bank account.

Will any of this have an impact on either the disability and carer's allowance or the pension credit that she receives?

Thanks in advance for any help!

Oldernotwiser

Does the daughter claim any benefits?

LPB83

No, the daughter does not receive any benefits

anmarj

LPB83 wrote: »

Hi

I was wondering if someone could offer some advice regarding the effect of proceeds from selling a home on benefits and pension credit. The situation is as follows:

- Two years ago, "person A" (over 65) was no longer able to look after herself and moved into her daughter's home, leaving her own home empty. She currently receives disability and carer's allowance and also pension credit.
- Person A now sells her own home for proceeds of £60k, wishes to give this money to the daughter who she lives with and as such has the cheque paid into her daughters bank account.

Will any of this have an impact on either the disability and carer's allowance or the pension credit that she receives?

Thanks in advance for any help!

Hi I work on Pension Credit, the disablity premium is effected, this is based on the Pensioner living alone, if the daughter cannot be ignored ie on AA/DLA MR/HR care then it should of stopped. The question on saving is dependant if the pensioner has an Assessed Income Period, if she does and it was set prior to her moving and she did not know at the time then the savings would be ignored, as any increase in capital does not need to be reported, if the AIP is due to end and the cusotmer gives the money away then an Specialist could deem that she has deprived her herself of money in order to gain more benefit, but it means that any savings the customer has would be taken into aco!!!! which could throw off PC altogether or onto savings credit only. (but that could happen if the disablity premium is removed as well)

The Carers allowance are you sure it is Carers or if it is the AA/DLA? A lot of people get that mixed up quite a bit, but if it is AA/DLA then that is not effected by her moving into daughters as that is about the need of the pensioner needing a carer and the amount of help.

Oldernotwiser

LPB83 wrote: »

No, the daughter does not receive any benefits

But you said that someone claimed Carer's Allowance - if that isn't the daughter, who is it?

repack

Hi all.
My elderly neighbor ( 65+ ) is on pension credit, 4 years into her 5 year assessment period she has received an inheritance of £45000. She wants to spend all the money on paying off her mortgage & any work that is required on her house. If she spends all the money in this way will it have any effect on her reassessment in 1 years time. She is having sleepless nights worrying about this, so any advice would be gratefully accepted.
regards repack

Whiteknight

LPB83 wrote: »

Hi

I was wondering if someone could offer some advice regarding the effect of proceeds from selling a home on benefits and pension credit. The situation is as follows:

- Two years ago, "person A" (over 65) was no longer able to look after herself and moved into her daughter's home, leaving her own home empty. She currently receives disability and carer's allowance and also pension credit.
- Person A now sells her own home for proceeds of £60k, wishes to give this money to the daughter who she lives with and as such has the cheque paid into her daughters bank account.

Will any of this have an impact on either the disability and carer's allowance or the pension credit that she receives?

Thanks in advance for any help!

Did "person A" actually inform the Pension Service when she moved as this would be a life event and could have effected the entitlement she got, as Pension Credit could have been paying a mortgage on the property and extra amounts that she may not have been entitled to when she moved.

anmarj

Whiteknight wrote: »

Did "person A" actually inform the Pension Service when she moved as this would be a life event and could have effected the entitlement she got, as Pension Credit could have been paying a mortgage on the property and extra amounts that she may not have been entitled to when she moved.

moving from one house to another is not a life event so therefore a reveiw would not of occured, but yes the mortage if being paid by PC should of stopped as it is only payable on the property that the customer lives at

anmarj

repack wrote: »

Hi all.
My elderly neighbor ( 65+ ) is on pension credit, 4 years into her 5 year assessment period she has received an inheritance of £45000. She wants to spend all the money on paying off her mortgage & any work that is required on her house. If she spends all the money in this way will it have any effect on her reassessment in 1 years time. She is having sleepless nights worrying about this, so any advice would be gratefully accepted.
regards repack

she can spend the money anyway she likes, the only time it will effect her is when she comes to her review and what ever capital she has at that time will be taken into account.

repack

Thanks for the reply anmarj, I will inform my neighbour tomorrow, much appreciated, thanks again

rozipoz

My partner and I both live in separate houses,due to his money mis-management,he sold his three years ago to his neighbour,to whom he now pays rent.All of the proceeds from the sale went to settle his many debts.
In July this year he lost his job,due to his age 62,he applied for and received pension credits and council tax benefits,they have refused to pay housing benefit,stating that the rules say he has to have been paying rent for five years and querying whether he made a profit on his house.They said it would go to appeal and he now owes three months rent without any possible means of paying it.The benefits agency have put nothing in writing to this effect or any explanation but have informed him telephonically.Naturally,he is absolutely distressed,any advice would be most welcome.