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Can this be legal?
Suzkin
Posts: 517 Forumite
A recent acquaintance of mine claims to me he has no money. He has also told me that because of this, he is receiving: income support (non NI-contributions based); full council tax benefit (i.e. he is not paying anything); carers allowance; and having the interest on his mortgage paid EVEN THOUGH he has approx. £60k in shares.
The carers allowance is because he travels from one county (where his own property is) to another, in order to look after a relative.
He has told me that he has not told the DHSS about the shares because they are not 'assigned' to him - that is, because the shares are 'security' against the mortgage loan of his property.
Can this be right? For some reason, I do not feel comfortable about what he has told me.
Can his situation actually be legal?
The carers allowance is because he travels from one county (where his own property is) to another, in order to look after a relative.
He has told me that he has not told the DHSS about the shares because they are not 'assigned' to him - that is, because the shares are 'security' against the mortgage loan of his property.
Can this be right? For some reason, I do not feel comfortable about what he has told me.
Can his situation actually be legal?
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Comments
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I have a feeling they should have been declared, at least.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
if he has access to the shares then they will count as capital,if he doesnt have then its not as clear cut and only the dwp could advise imho0
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Carer's Allowance is paid to people who care for an elderly, frail or disabled person for at least 35 hours a week (plus other criteria), not because he travels from one county to another.0
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The carers allowance is because he travels from one county (where his own property is) to another, in order to look after a relative.
'He has to spend 35 hours a week or more caring for this relative in order to get carers allowance which doing all that traveling i wouldn't think he does !
He has told me that he has not told the DHSS about the shares because they are not 'assigned' to him - that is, because the shares are 'security' against the mortgage loan of his property.
Can this be right? For some reason, I do not feel comfortable about what he has told me.
Can his situation actually be legal?[/QUOTE]
From what i gather he has to declare 'any' income he gets he will be in serious trouble big time if he gets caught !:oAutism isn't the end of the world just a journey to another one:)
:eek:Why do people answer your questions just to be rude and unhelpful,don't like my question please don't answer:eek:0 -
Shares are assets and have to be declared - they are not assigned to a mortgage - what I believe he means is that he intends to use them to repay his mortgage one day, however he can cash them in at any time
He would be in serious trouble if this was discovered - and people do get caught... if he is your friend perhaps you can suggest he tells the benefits agency and if he is correct in his thinking then no change to his benefits.... if however he is not he will lost his income support...
by the way why doesn't he work? does he have children to look after, is he ill or disabled or perhaps he spends all his time caring for the relative?0 -
You could always complete the details here
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/BenefitFraud/DG_10014876
The National Benefit Fraud Helpline...“I contend that we are both atheists. I just believe in one fewer god than you do. When you understand why you dismiss all the other possible gods, you will understand why I dismiss yours.”
Stephen Henry Roberts (1901-1971)0 -
A recent acquaintance of mine claims to me he has no money. He has also told me that because of this, he is receiving: income support (non NI-contributions based); full council tax benefit (i.e. he is not paying anything); carers allowance; and having the interest on his mortgage paid EVEN THOUGH he has approx. £60k in shares.
The carers allowance is because he travels from one county (where his own property is) to another, in order to look after a relative.
He has told me that he has not told the DHSS about the shares because they are not 'assigned' to him - that is, because the shares are 'security' against the mortgage loan of his property.
Can this be right? For some reason, I do not feel comfortable about what he has told me.
Can his situation actually be legal?
He is taking the p iss. He will be in big trouble if he is found out. God i wish i had £60k in shares !!!! He makes a mockerey of genuine people in genuine need. Such benefits are there to help the needy not the plain greedy. report him. life is what you make it, make it fun !0 -
His shares are secured against his property, the same way as if you put down £60k as a deposit. Not many banks do this as shares can go down as well as up, and most have been going down. As his shares have been secured he cannot trade in them not receive the dividends. He will only 'get them back' once he has paid off the mortgage. It is no more an asset than you putting down a deposit on your home and calling this money in the bank.
I guess the dwp might have some other opinion on the matter however...they usually do.0 -
lovetowinacar wrote: »Shares are assets and have to be declared - they are not assigned to a mortgage - what I believe he means is that he intends to use them to repay his mortgage one day, however he can cash them in at any time
He would be in serious trouble if this was discovered - and people do get caught... if he is your friend perhaps you can suggest he tells the benefits agency and if he is correct in his thinking then no change to his benefits.... if however he is not he will lost his income support...
by the way why doesn't he work? does he have children to look after, is he ill or disabled or perhaps he spends all his time caring for the relative?
Shares can be used as security for a mortgage or other secured loan.Gone ... or have I?0 -
Carers Allowance is only paid where the person being cared for is on at least the middle rate of the Care Component of DLA.kingfisherblue wrote: »Carer's Allowance is paid to people who care for an elderly, frail or disabled person for at least 35 hours a week (plus other criteria), not because he travels from one county to another.
Looking after anyone else is done with good will.0
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