Inheritance affecting council tax benefit

fluffymovie

Deprivation of capital does apply to ctb as well as state benefits,

He should have told the council straight away but that's the past.

They will want to know his reasons for putting the money away and whether he can access the capital. Depending on his pension plan it maybe that he could access it at any time and so he would be treated as having it and as the capital limit is over 16,0000 his ctb would stop.

When considering deprivation of capital, we have tonlook at the reasons for spending the money in the way and at the time it wS spent,

He should find out what the council need and provide as soon as he can. Cab are a great resource for advice

Oldernotwiser

fluffymovie wrote: »

They will want to know his reasons for putting the money away and whether he can access the capital. Depending on his pension plan it maybe that he could access it at any time and so he would be treated as having it and as the capital limit is over 16,0000 his ctb would stop.

I thought that, even if he couldn't access it, if it's considered to be deprivation of capital he could be assessed as still having the money. Have I misunderstood?

Penelope_Penguin

Oldernotwiser wrote: »

I thought that, even if he couldn't access it, if it's considered to be deprivation of capital he could be assessed as still having the money. Have I misunderstood?

I don;t think so If he'd bouht a car for £20 k, he coulod have no access to the money any longer, either, but this would be clear deprivation of capital. I think in this circumstance it is possible, that he will be assessed as still having the £20k, which is above the £16k max for eligibility to CT benefit.

When I have clients on benefits who come into money, I advise them to be straight with Jobcentre regarding their intentions. I have seen clients who've used windfalls to pay off debts and mortgage, who have been fine, as they're reducing any future liability.

Not sure what Jobcentre will say in this case, but you need to contact them, or take advice (CAB for instace) quickly.

Good luck.

Penelope_Penguin

ceridwen wrote: »

HOpefully someone knowledgeable will be along soon.

I presume it is only Council Tax benefit that your father is getting - ie no help with rent or anything else?

As far as I understand it - "deprivation of capital" only applies to those on Jobseekers Allowance. I doubt it applies to someone who is paying a lower rate of Council Tax on account of low income but is actually in work.

I doubt your father has anything to worry about in all honesty if C.T. benefit is all he is getting. He would have something to worry about if he was claiming JSA - but since he isnt - I very much doubt he has a problem.

Sorry, ceridwen, but this is really poor advice Deprivation of capital can apply to any means tested benefit.

seven-day-weekend

everever wrote: »

He doesnt claim housing benefit, just council tax as it was crippling them. Obviously now it would have been better to live off the money instead of putting it into a pension but as he has ill health he was thinking of my mums future i guess. I dont require any more 'help' thanks as this site clearly just finds other peoples problems amusing

OP,I'm sorry you have had such a negative experience of MSE.

I think regulars on here who often give advice see so many 'I've-come-into-money-woe-is-me-I-will-have-to-pay-my-own-Council-Tax' type of posts that sometimes they are not always as polite as they might have been.

The fact remains however, that the advice you have been given is correct. What your father has done may well be considered to be deprivation of capital and his Council Tax Benefit may be stopped. The bald facts are that he DID have £20,000, did not declare it and in fact 'hid' it in his pension, whilst continuing to claim Benefits he was no longer entitled to.

macman

everever wrote: »

He doesnt claim housing benefit, just council tax as it was crippling them. Obviously now it would have been better to live off the money instead of putting it into a pension but as he has ill health he was thinking of my mums future i guess. I dont require any more 'help' thanks as this site clearly just finds other peoples problems amusing

Or to put it another way, you don't like the sound advice that you have been given (that it is clear deprivation of capital and should have been declared) and were hoping that everyone would say 'it's fine'. No one suggested that it was amusing.

Mojisola

everever wrote: »

He doesnt claim housing benefit, just council tax as it was crippling them. Obviously now it would have been better to live off the money instead of putting it into a pension but as he has ill health he was thinking of my mums future i guess. I dont require any more 'help' thanks as this site clearly just finds other peoples problems amusing

I think it's difficult when you've got an older relative who has unintentionally done something wrong to be told that it is wrong. A lot of people are inexperienced and naive when it comes to benefits and do make mistakes.

Your father hasn't splashed out the money in order to get rid of it. He's tried to do something sensible with it and any pension received from it will reduce your parents' reliance on benefits in the future. Do get advice about what's happened - it may be that something can be worked out.

My parents had a lot of help from the Pensions Service. Someone came to the house and went through all their income with them and helped them to claim benefits that they didn't realise they were entitled to. Does he have take-home pay of less than £202.40? If so, and one of your parents is over 60, they may get Pension Credit.

Vader123

ceridwen wrote: »

O.P. - ignore the posters so far - it sounds like personal opinions/jealousy.

HOpefully someone knowledgeable will be along soon.

I presume it is only Council Tax benefit that your father is getting - ie no help with rent or anything else?

As far as I understand it - "deprivation of capital" only applies to those on Jobseekers Allowance. I doubt it applies to someone who is paying a lower rate of Council Tax on account of low income but is actually in work.

If the money is in a pension then it is not accessible until he retires.

I think the best way probably for you to resolve this would be to ring the Council for a chat about this - dont give your name, just make it a general query about "A relative of mine has done such and such....but their income is still less than £10k and their savings are still £whatever they are. Does this inheritance affect their C.T. benefit - as they no longer have it?" Then you will know for certain what the position is - but wont have risked your father getting into any trouble.

Make sure you speak to someone who sounds as if they actually know their job - so you dont get wrong information from someone who is pretty clueless about their job.

I doubt your father has anything to worry about in all honesty if C.T. benefit is all he is getting. He would have something to worry about if he was claiming JSA - but since he isnt - I very much doubt he has a problem.

This post is so wrong it borders on being trollish.

Ceridwen, please check your facts before posting, you are offering duff advice to vunerable people.

Vader

everever

macman wrote: »

Or to put it another way, you don't like the sound advice that you have been given (that it is clear deprivation of capital and should have been declared) and were hoping that everyone would say 'it's fine'. No one suggested that it was amusing.

I have not done anything wrong, i didnt even know about this until yesterday! I was just asking if anyone knew what to expect and what was the best way to procede....not a pat on the back. I've worked all my life, have 2 children and have never claimed benefits. The sarcastic remarks and people laughing at the fact that he may get 'done' are not helpful and are very upsetting

macman

Then the best way to proceed is for your father to declare the capital and co-operate with any subsequent investigations, it is only £4,000 over the allowable sum.