Can this be legal?

Suzkin

drc wrote: »

He's not an MP is he?

No, he is not an MP.

I'm not particularly keen on his general attitude, plus the fact that he knowingly frittered his now-deceased fathers hard earned £1m away (also with lots of champagne parties), telling me that he never bothered to think about any occupation as he 'knew' he would inherit wealth - and now the state is falling over backwards to help him out (even though an impending huge payout is due soon). :eek:

As I say, he is an 'aquaintance'. I question very much whether his irresponsibility and prevailing attitude could ever really make us anything more...:(

drc

Why don't you report him? You could do it anonymously. If his set up regarding the shares is all fair and legal then presumably even if the DWP do investigate he won't get into trouble. However, if what he is saying is a load of tosh, then he's defrauding the taxpayer and those genuinely in need out of large sums and the DWP will hopefully put a stop to it.

catz1ct

He would definitely have to declare this as it may count as capital which inturn could make him ineligible for council tax benefit.

absent_dad

If you think of the question that the dwp ask in relation to stocks and shares, they ask do you own

Now a dictionary definition of own is

1. To have or possess as property.
2. To have control over

You could say he owns them in that he possesses shares all be it now tied up as a deposit
You could also validly say he does not have any control over them.


How the DWP would view this would be uncertain, his advisers have said you don't have control therefore do not own them, the DWP may say you possess them therefore own them. This is where solicitors make all their money on the definition.

The fact that any asset tied up in a property doesn't count as disposable income, I do not think the DWP have a case.

The fact that his shares are going up will mean once his mortgage has been paid off, that he no longer has £60k but £60k+, but who is to say in 10 years time the shares will be worth anything, this is the risk for the bank and yourself, however, if he blew a million...£60k isn't going to last him long, a fool and his money spring to mind.

The fact however, that he went through so much money in such a short period might be of interest to the DWP, I have seen claims being knocked back because of this in the past.

If you do report him, don't forget that his claim will be suspended awaiting further investigation and a decision, if his mother is really dependent on him, this will affect her as well.

Hope this helps

NASA_2

Is he in receipt of a means tested benefit?

I tried reading through the whole thread quickly and didnt see any mention of the person being IRO of means tested benefit. If he isnt then the shares matter not a jot.

calleyw

NASA wrote: »

Is he in receipt of a means tested benefit?

I tried reading through the whole thread quickly and didnt see any mention of the person being IRO of means tested benefit. If he isnt then the shares matter not a jot.

I really don't know what they are claiming as in one breath we are told IS and CT benefit. And then carers allowance has been chucked in to the mix as well.

With carers it make no difference as not means tested but if they getting CT benefit then that makes a difference. Would they get a top of IS as well?

Yours

Calley
.

absent_dad

In the opening post they talk about income based...actually non-contribution which amounts to the same thing.

You would normally get ib-jsa but if you are a carer you can opt for income support instead. so ib-income support.

dreamylittledream

Income Support is only income based - clue in the name!

I'm finding this thread a little comical.

Assigned shares are identical to a mortgage endowment or a mortgage ISA (in fact they may even be a mortgage ISA - as shares can be held in an ISA shell). A deed of asignation means that they can not be sold without the lenders permission to release the asignation - which they won't generally do without an alternative repayment vehicle.

An assigned investment can not be counted as capital as it is not a realisable asset.

Once again a lot of slight self righteous posturing by those that don't actually know...

tazwhoever

Is this 'friend' YOU?

GlasweJen

The OP seems to be implying that his friend hasn't actually recieved the £1m yet so means testing doesn't come into as the shares aren't counted because of the explanation dreamy gave which is spot on.

Once the million hits the account then it will all change (if indeed the million quid even exists).