Receiving money from sale of house so benefits stopped.

flashnazia

j01349 wrote: »

Thanks thats what we though £10000 for a car, £5000 for a holiday & £2000 on tv all apparently legit ways to spend money according to cit advice. We are not looking ways to get around the benefit system just trying to find out what can actually be done with the money as had every thing went the way it was meant to their kids would have received the profits from the sale which is why they are concerned the kids will be missing out on what they had wanted them to have.

I don't think the taxpayer should help so that the kids can get their inheritance.

Oldernotwiser

j01349 wrote: »

selling house for 72000k so getting a house less than that would be hard to find also due to medical reasons not in work.

Why can't they buy a flat or a smaller house?

NASA_2

While the car in some circumstances is an acceptable purchase, if it is bought for the sole reason of enabling the claimant to continue being entitled to benefit then it is still deprivation of capital, it is the motive behind the buying (Or hiding of money) that dictates whether it is against the rules or not.

There is a six month disregard if, after the house sale, the claimant is looking into buying another property but as this case concerns moving into the rental sector that is not relevant.

CAB advice should really come with a health warning as they often give out misleading advice. They also, on some occasions, will blatently lie in order to try and get a result for their client.

All you have to do is look at the discussion area of 'rights net' to see how clueless some of them are. Though there are some who clearly know their stuff.

McKneff

DLA wont be affected but IS most certainly will

alwaysonthego_2

woodbine wrote: »

I think this so called advice from the cab has been passed on to the OP,these things often get confused(im being generous)in the telling.

I agree with this as many of you know I was trained by the CAB and there is no way that we would give this advice as it is up to DM to decide what is reasonable. I would put in a complaint, however woodbine says sometimes it can be like Chinese whispers, if an adviser has given bad advice they need retraining and the bureau will be unaware unless it is brought to their attention.

Oldernotwiser

I think also that some people hear what they want to hear, so an adviser says "you can buy a new car" (meaning new to you) and the client hears "you can spend £10K on a brand new car"!

real1314

j01349 wrote: »

..... their kids would have received the profits from the sale which is why they are concerned the kids will be missing out on what they had wanted them to have.

They will still be getting the money from the house.

What they probably won't be able to get is money from the taxpayer whilst they have all that money. And why should they?
People who have no savings and earn as little as £130 a week have to PAY tax. Should those people pay toward subsidising the life of someone with £70k in savings?

welshmoneylover

j01349 wrote: »

A family member is selling there house and moving to rented accomodation due to medical issues. They has been advised that their benefits will stop when the sale completes however they will be given back if the money has all gone in six months. The house was originally meant to be inheratence for their kids however as needs must they now have to sell up & will have to live of the money instead due to the benefits stopping. As advised by cit advice the money can be spent on certain things which are acceptable e.g. £10000 on a new car, however we are wondering about some of the advice given as it seems to have changed since first advised. Can our family memeber open more than one trust fund for family members eg one for each child. Also is it acceptable if they help out a daughter who has some debt mostly caused due to taking time of to care for said parent etc. It has been mentioned that receipts will be needed to prove all purchases which is fair enough however they are now worried they can not help their daughter as the debt is not in their name so receiot would show something different. Is this acceptable or is there any way around it. Thanks

Can you tell me why you think it is acceptable for the tax payers to fund this?

Most people who work can't afford £10,000 on a new car, never mind flashy holidays or a new TV :mad:

j01349

Thank you all for your responses clearly some of you think this is a way to try and get around the benefits systems which it really is not. The profits from the sale of the house will not in fact be that large as they still have to clear the mortgage,any other debt and the fact that they are paying for the rent themselves on the new place for several years whilst awaiting their pension to fund the rest. The main reason for this move is to be closer to the only son specifically for support as the mother who is the one selling the house is currently suffering from bi polar disorder and has ultimately ended up in hospital numerous times having tried to commit suicide. Buying a smaller cheaper house is not an option as finding anything smaller than what she already had is impossible aswell as the fact she would be unable to get a mortgage any longer due to the above metioned condition taking her out of the working market. The comment on the new to you car is a fair one and one we have tried ourselves to point out as I personally would never buy a brand new car but this was infact what she was advised and because it was from "someone in the know" she will not listen to us over them. Maybe this is down to her mental state but how can we win? We would just like someone to advise of of how we can keep her from doing something wrong in the eyes of the government resulting in her getting into even more of a state and actually suceeding in what she has tried so many times. Once again thank you all for any help but again I would like to stress this is not about conning the government for benefits it is to help protect a mentally ill family member from doing something to make an already stressful situation far worse.

RAS

Hi

it is quite possible that her perceptions of what is allowed is coloured by her mental health problem.

Can i suggest that someone (her son, partner) ring CAB and ask to speak to the senior person and explain what has happened. Then maybe you can organise another visit and reduce her expectations.