Where do I go from here?

Judampre

I can't see a way forward....
I own my former family home and have done for the past 7 years. My stepfather aged 92 lives in it rent free. I also own the house we live in. My husband has been ill and has now been deemed terminal.

I cannot claim any means tested benefits because of my family home. Asset rich and cash poor they say! as if I don't know that. I had to take out a small mortgage, interest only,out on my home to help me look after my husband. I needed to replace our car to get him to and from hospital etc. I don't have any debts but no savings either. The majority of our income is from my husbands pension and attendance allowance both of which will cease when he dies.

This will leave me with a small occupational pension which will pay electricity, phone and council tax provided nothing goes up. My only other income will be my state pension which will need to cover all my other living expenses, insurance, petrol and the interest only mortgage and I will have to pay for his funeral with my credit card.
I could not get rid of my car as we live in a very rural area 7 miles from shops - no buses etc.

What would happen if I defaulted on either the credit card or mortgage? Would they make me bankrupt? What would then happen to the house my stepfather lives in? I cannot see a way forward. My stepfather has a care package in place but refuses to go into a home which he really needs, as he won't spend his money. His son and daughter refuse to care for him and I am 400 miles away. When anything happens to him I will be fine but can't see how I can exist til then and I feel as though I am waiting for him to die. Does anyone have any suggestions?

RAS

What were the terms of the will under which you received the former family home?

Judampre

Owned half the house when my father died 20 0dd years ago and then the other half 7 years ago when my mother died. Will specifies that he has a home for life. He can sell it and buy somewhere smaller but any profit or anything left comes to me. He won't even consider moving anywhere - won't even talk about it. He just tells me that I'll be OK because I will inherit 1/3 of is money. Its complicated by the fact that he is my first husbands father. He has 2 sons but hasn't spoken to my ex for 30 years because of the way he treated me and my children

sleepless_saver

Judampre wrote: »

I cannot claim any means tested benefits because of my family home. Asset rich and cash poor they say! as if I don't know that.

It sounds like you might have a reversionary interest in the family home - is there a trust? If you have a reversionary interest, the house should be disregarded as capital for the purpose of calculating your entitlement to means tested benefits like pension credit (unless stepfather is paying you rent). (see DWP Decision makers guide 84226, 84401,84402)

So I suggest you reapply for benefits and get welfare rights help if necessary. If your joint income is low enough, you should be entitled.

Judampre

Thank you so much. Does the fact that I live in Scotland and the house is in England make any difference and all the paperwork for the house and the land registry stuff is in my name?

Blitz01

Take some proper legal advice

RAS

Judampre wrote: »

Thank you so much. Does the fact that I live in Scotland and the house is in England make any difference and all the paperwork for the house and the land registry stuff is in my name?

It will not help but the stark fact is you have no right to sell the house, so it is not capital for the purposes of benefits claims.

Perhaps ring NDL as they have scottish and english sections.

Counting_Pennies_2

I am so sorry to hear your news.

My only other thought is could you downsize yourself?

Mojisola

Counting_Pennies wrote: »

I am so sorry to hear your news.

My only other thought is could you downsize yourself?

The idea of being forced to move while coping with a husband's terminal illness would be enough to finish Judampre off!

I also don't think the other house should be counted as capital because you don't have the right to sell it. You may have been advised by someone who didn't understand the situation properly. Ask again.

sleepless_saver

Judampre wrote: »

Thank you so much. Does the fact that I live in Scotland and the house is in England make any difference and all the paperwork for the house and the land registry stuff is in my name?

No it doesn't make any difference, but you will need clear evidence that your stepfather has a right to live in the house until his death.

Counting_Pennies_2

Mojisola wrote: »

The idea of being forced to move while coping with a husband's terminal illness would be enough to finish Judampre off!

I am not for one moment suggesting she down sizes while her husband continues his battle. She is asking about what will happen when her husband sadly passes away.

With the inability to access funds from the house the step father lives in, her only real asset is the house she is currently in, so wanted to sow the seed of down sizing later on. Based on her fear of having to go bankrupt and lose everything, I thought it might be a sensible suggestion.