Council tax benefit and pension credit when living in relative's home

Joboy

I am 61 years of age and recently moved into my mother's house (she is the owner of the house). I am unemployed but get 2 quite modest occupational pensions and I also have over £16000 in savings. I get guarenteed pension credit which will be just over £64 a week from April.

I would like to know if I can claim full (or part) council tax benefit - or perhaps my mother can instead? (She has a state pension/widows pension and attendance allowence (lower rate) I do not 'care' for her at all.)

I believe I am entitled to Full ct benefit as I am getting guarenteed pension credit. Indeed I believe I could have claimed ct benefit for over the last year! I am doubtful about "housing benefit" as I am living with a close relative so I don't think this can be claimed. In any case I do not pay her rent so I am not interested in making any such claim

It is quite possible that I shall soon take ownership of the house from my mother. How will this change things - if at all?

Many thanks for any advice that can be offered

allen35

Your mum being the homeowner/tenant it is her responsibility to pay council tax and your responsibility to help as she will now lose her 25% discount, if she was living alone she will possibly lose some of her benefits as she doesn't live alone anymore (SDP), you could look into claiming carers allowance and this may be backdated 3 months, on PC you would receive a carers premium of £30.45 pw

pandaspot

Hi

First of all because your mum receives attendance allowance then there will be no charge for you living at her property. It makes no difference what your income/capital is at all as your income/cap will not be included on the claim.

Your mum will lose the single persons discount but her benefit will be adjusted accordingly.

tanith

you say you will soon take 'ownership' of the house, but have you considered how this will affect both of you regarding possible care needs or benefits?

Mojisola

tanith wrote: »

you say you will soon take 'ownership' of the house, but have you considered how this will affect both of you regarding possible care needs or benefits?

This is important. Search this site and the web for "deprivation of capital" and read up on it.

pandaspot

If you become the owner of the property then you won't be able to claim ctb as you have over £16k. I take it your mum will just relinquish ownership to you? Will money change hands?

When you are the owner your mum can claim 2nd adult rebate. This will allow her to claim 25% ctb. This is to make up for what you would lose having a 2nd adult in the property.

Joboy

Many thanks to everyone who replied to my query re Council tax rebate and pension credit while living in my mother’s home. I actually sent a general reply, to everyone, who answered,earlier on but I can’t find it, so here I go again!
I am waiting to get a reply from my council re an email query I made so I won’t give a full reply at the moment.
I was particularly interested in the reply concerning Deprivation of Capital. As I am now in my 60s and living with a close relative then I understand that the law says the Council can’t take ownership of the house should my mother need to go into care at some future time. I know some people accept property or money as early as possible from parents so as to avoid this problem However, my parents actually offered me ownership of their house more than 10 years ago but I declined to take it!
A few years ago my mother’s solicitor had the papers ready for me to sign but I didn’t sign them They are still at the solicitors unsigned.! Therefore, if the Council ever do try to say that I have tried to get round this problem I expect my solicitor could testify that I refused to take ownership of my mother’s house years ago. I hope so anyway!

Joboy

Mojisola

Joboy wrote: »

I was particularly interested in the reply concerning Deprivation of Capital. As I am now in my 60s and living with a close relative then I understand that the law says the Council can’t take ownership of the house should my mother need to go into care at some future time. I know some people accept property or money as early as possible from parents so as to avoid this problem However, my parents actually offered me ownership of their house more than 10 years ago but I declined to take it!
A few years ago my mother’s solicitor had the papers ready for me to sign but I didn’t sign them They are still at the solicitors unsigned.! Therefore, if the Council ever do try to say that I have tried to get round this problem I expect my solicitor could testify that I refused to take ownership of my mother’s house years ago. I hope so anyway!

Joboy

Sorry, didn't notice your age in the first post. Your mother's house will not be taken into account if she needs residential care while you are resident there. As that's the case, do you need to go ahead with the transfer of property?

Joboy

Thanks for that Mojisola A good point I don't trust the Government an inch (there's a surprise) although I doubt they'll change the law for those of us who are already over 60 Also, I understand the Government will announce their "Care Review" in June or July of this year. I suspect those who can afford it will be expected to contribute say £20000 towards "Care Insurance" (regardless as to whether they ever go into a Home or not). If I have my mother's house then the value of her estate will be reduced - but as she has a good bit in her bank accounts she would probably still have to pay the "Care Insurance" anyway! Much to think about

Joboy