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A complicated one...
831badger
Posts: 12 Forumite
My parents in law friends are looking at selling their london home. They are a low income family (one child at school so they get working tax credits) as one parent works the other parent does not work and is on minimum disablity payment.
They have no mortgage which means they could sell their house for £300000. They are then planning to move northwards where a house would cost them £150000 leaving them with £150000. Would this affect the disability allowance and would they lose the working tax credit due to their low income status as the working parent wants to keep workin though it will still be a low paid job.
They don't want to use the equity as this will become thier pension. They also have an elder child (over 21) and wondered if they money could be gifted to them to avoid them losing thier current status.
I hope all this makes sense and someone can adivse what thier options are...
They have no mortgage which means they could sell their house for £300000. They are then planning to move northwards where a house would cost them £150000 leaving them with £150000. Would this affect the disability allowance and would they lose the working tax credit due to their low income status as the working parent wants to keep workin though it will still be a low paid job.
They don't want to use the equity as this will become thier pension. They also have an elder child (over 21) and wondered if they money could be gifted to them to avoid them losing thier current status.
I hope all this makes sense and someone can adivse what thier options are...
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Comments
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They will lose any means tested benefits. Do they receive Income Support, i think this would probably be affected.
If they receive DLA this will not be affected.
They cant really expect the tax payer to fund them when they have £150K in the bank and a house worth £150K too.
Gifting money would be deprivation of capital and they would be treated as if they still had the money anyway.make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
What about putting the money in trust?0
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Though it does have a housing angle to it, you are better off posting your query in the benefits section.
As per the previous posting, DLA is not means tested - many working people claim it. I believe tax credits are affected by the income received as interest, rather than the savings themselves but the benefit bods are the best ones to tell you the actual position on this.0 -
Why should I (as a taxpayer) fund their retirement?
You wouldn't be - the post says they would like to retain half the proceeds from the sale for their retirement
OP, maybe you they should speak to a financial advisor about the best way to invest their funds for retirement and then they can phone the tax credits helpline to ask if this investment would impact their award should they go ahead:silenced:0 -
You wouldn't be - the post says they would like to retain half the proceeds from the sale for their retirement/QUOTE]
Yes, but they dont want to spend any of it now, they want to keep it till they retire.
If the wife doesnt work, why not. I know she is on DLA but this is the lowest rate and I'm sure would be able to do some sort of work.make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
Fair point
Yes, but they dont want to spend any of it now, they want to keep it till they retire.
If the wife doesnt work, why not. I know she is on DLA but this is the lowest rate and I'm sure would be able to do some sort of work.
The issue wouldn't be an issue if public funds weren't in the equation:silenced:0 -
The post wouldnt have been posted if public funds werent in the equation either.make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
You wouldn't be - the post says they would like to retain half the proceeds from the sale for their retirement/QUOTE]
Yes, but they dont want to spend any of it now, they want to keep it till they retire.
If the wife doesnt work, why not. I know she is on DLA but this is the lowest rate and I'm sure would be able to do some sort of work.
Agorophobia is the condition which does prevent the parent leaving the house....think we shall advise them to speak to financial advisor.
I know that they don't want to rip off the taxpayer, nor do they want to lose out on what they're entitled to and they want to ensure that when their retirement arrives they've got enough money to see them through.
Its just them not being in this situation before they've asked us to seek advice here as they're not internet buffs.0
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