Can this be legal?

Suzkin

NASA wrote: »

Carers Allowance is only paid where the person being cared for is on at least the middle rate of the Care Component of DLA.

Looking after anyone else is done with good will.

He says the person he cares for, receives Attendance Allowance (is approx. 80 years old). Is this the same thing as above?

Suzkin

absent_dad wrote: »

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.

Thanks for explaning this - and thanks to everyone else, also.

However absent dad, I'm not 100% clear: does this mean that he would not be able to get the shares back all the time he still has the mortgage on the house? If this is the case, then I guess for the time being, the money is not his / not considered as capital or an asset?

The reason I am also asking these questions, is that he inherited approx. £1m (yes, £1m) from his father, then blew a lot of it - and was also given incorrect IFA advice. The Ombudsman has agreed in his favour, although I think he is going to take the IFA to court to try to get more money back.

While all this is going on, - he has not received any payout yet, although this is likely to be over £100k - he is 'treading water' and is claiming benefits etc.

The fact that he has chosen not to disclose the shares to dwp has really troubled me. He had to ask his tenant to leave living in his house, so that he could get more benefits by satisfying dwp criteria.

I personally feel really aggrieved knowing all this, and what *may seem* like manipulative and not totally honest behaviour - it seems so unfair to others. I have been tempted to mention all this to dwp. However, to satisfy my conscience, I need to be sure that I have my facts right, and it is not me who has made any mistakes...

Suzkin

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?

He has told me the shares are assigned to the mortgage lender (?). I have insisted that he discloses this to dwp, and he says that he has consulted his IFA and Ombudsman, and they say there is no need to.

What disconcerts me is that I think he should STILL disclose this info. to dwp, and let them decide - especially since they are paying him benefits. It's as if he is knowingly not telling the people (i.e. dwp) who really need to know this. Seems rather underhand to me.

He doesn't work because he doesn't really want to: he has told me this, and is simply 'treading water' until the IFA problem has been settled via the courts. He also seems to know that he can go on living like this for another year, if he needs to. He does the minimal to keep the Job Centre satisfied that he is looking for work - although is hardly trying.

He is not ill, nor disabled. He says he is looking after his mother, who is in her 80's...

NASA_2

Suzkin wrote: »

He says the person he cares for, receives Attendance Allowance (is approx. 80 years old). Is this the same thing as above?

Not exactly. AA is for people over 65 whereas you have to be under 65 to claim DLA. You can claim CA for looking after someone on AA.

GlasweJen

If your "friend" is getting carers allowance then all he has to do is provide care for the person in reciept of AA for 35 hours per week. There's nothing else he would need to do to keep the job centre happy.

Suzkin

GlasweJen wrote: »

If your "friend" is getting carers allowance then all he has to do is provide care for the person in reciept of AA for 35 hours per week. There's nothing else he would need to do to keep the job centre happy.

Thanks for clarifying this part of my enquiry: I'm amazed by this apparently lack of required criteria / evidence, to qualify for this allowance.

His mother is actually looking after him (e.g. he came back for easter period so he didn't need to pay for food for himself - his mother fed him - as he told me he was going through a 'lean' period!).

drc

He's not an MP is he?

Jowo_2

dmg24 wrote: »

Shares can be used as security for a mortgage or other secured loan.

wow, wasn't aware of that, that thousands of pounds worth of shares owned by an individual are dismissed as capital by the DWP if a person has a particular type of arrangement with a lender.

is this a common set-up in terms of shares being ringfenced by a lender against a residential property?

since people love loopholes, why isn't this used more frequently if it protects a person against deprivation of capital rules or increases their eligibility for means tested benefits (i.e. they could get rid of their savings by buying shares and then using them as security against their property)?

GlasweJen

I think the short answer re. the shares is that those types of mortgages are very rare as the shares could decrease in value over time leaving a massive deficit so it's a high risk mortgage.

As for carers allowance, the person in reciept of AA would have signed a declaration saying that the person applying for carers allowance looked after them for 35 hours per week and that they were happy for the claim to go ahead (as someone claiming CA for you can decrease other benefits).

Suzkin

Utterly amazing: Of course the person being care for is his MOTHER! So naturally, she would say he is looking after her 35hrs a week (even though I know for a fact, he is not).

He also tells me that his shares are looking very good and that they are actually rising.

Looks like he's sewn everything up - to exploit the state system!