Housing benefit for homeowners

John_Stiles

antrobus wrote: »

Then according to the link I gave (which is a quote from the DWP's RR2 - A guide to Housing Benefit and Council Tax Benefit) your part-ownership of the property will have no effect on your HB or CTB, because it won't count as capital.

Please note, that I don't know that this is right. I'm only reading what it says on the DWP website. But you should be able to double check with the CAB or someone like that.

I had a look at your link. It certain does seem that as long as the property is occupied by either an old person or a "disabled" (does having depression count?) person, I can still get HB despite being the owner or part owner, even if the value of what I own is well over 16 grand.

And I've just been reading this :

http://www.dh.gov.uk/prod_consum_dh/groups/dh_digitalassets/documents/digitalasset/dh_125836.pdf


(see section 7.015)

it seems also that if the property is held in a trust, it can't be touched.

Can anyone confirm this?

antrobus

I'm assuming that the 'CHARGiNG for RESIDENTIAL ACCOMMODATION GUIDE' relates to the issue of care home fees. Yes it says what it says about legal and beneficial ownership. But bear in mind that there are rules on deprivation of capital which might make such arrangements invalid. It depends to a great extent on what has motivated the precise arrangements entered into.

John_Stiles

antrobus wrote: »

I'm assuming that the 'CHARGiNG for RESIDENTIAL ACCOMMODATION GUIDE' relates to the issue of care home fees. Yes it says what it says about legal and beneficial ownership. But bear in mind that there are rules on deprivation of capital which might make such arrangements invalid. It depends to a great extent on what has motivated the precise arrangements entered into.

The motivation is basically to protect a property from being used to assess income. It's as simple as that. I know that if the worst happens that the local council will sniff around for any excuse to take away what someone has worked hard for.

I know someone whose mum is 94 years old and lives in a care home and is paying £500 a week for it, which has had to come from the sale of her house, which she was forced to sell. That's a terrible way to live. What I want is for that to not happen in this case.

This is what things like trusts are there for, among other things.

I've been advised that the key is in the stated reasons for setting up a trust. Yes, if the reason is to avoid paying for care costs, the council will jump on that. This is why (or so I've been advised) it's important to give other reasons too. Reasons such as wanting to leave the property to someone else to inherit. Both are perfectly reasonable.

We live in a world where our overlords get to do what they like and dictate to everyone else. If I could wipe them all out I would, but for now I'll just settle for protecting what someone has worked hard all their lives for.

Mikazaru

How is it a terrible way to live? It's not taking away everything they've worked hard for, it's just being used to fund their care. I'd much rather my parents used up all the money they had to be able to have good care in a nice home if needs be, rather than try protect their money for me and end up in a bog standard home. Surely if they've worked hard for it you want them to be able to have a choice of care homes rather than just the one the council would fund?

trebor21

Why dont you move in and care for them?

Well the whole question brings everything to light, the elderly have to sell homes to pay for care, as the governement prefers to hand out housing benefit.
So not only do the elderly get to pay tax all their lifes to support the benefits system, when it comes time for them to need catered for, then its sorry you have worked hard and own that house so you can pay for itself! But Mr housing benefit, has no assets so gets it paid for! so again the home owner gets to subsidse the system!

skintandscared_2

John_Stiles wrote: »

I know someone whose mum is 94 years old and lives in a care home and is paying £500 a week for it, which has had to come from the sale of her house, which she was forced to sell. That's a terrible way to live. What I want is for that to not happen in this case.

What's terrible about that? Who should more rightly pay for a person's care than that person themselves? Should I be paying it?

John_Stiles

antrobus wrote: »

Well it might. But trusts can be expensive to set up and manage, and if you're on HB, you're not really playing in that league. See my previous response first before you start thinking about that sort of thing.

How much are we talking, more or less?

Emmzi

John_Stiles wrote: »

Or they can just sign over the property to the other person, in which case if they become ill and need to go into care they will be ok as it will be paid for them, but the person who owns the property but doesn't live in it is then considered to not need HB and has to sell the property in order to pay their rent.


Is that correct?

No. It can be seen as willful deprivation of assets and the house can be reclaimed and sold. Uncommon but possible. The person who owns it will then be evicted an become eligible for HB again.

Easy thing is, if you need care and you have the assets to pay for it, sell them and pay for it.

If you own a house, live in it and don't claim HB.

Is very very simple. What you believe to be fair doesn't come into it, only the law, but do feel free to write to your MP or indeed get elected yourself and try to change the law.

skintandscared_2

John_Stiles wrote: »

If anyone who can actually read and who knows how to think comes along, your advice is welcome. I would be particularly interested to know about trusts.

I can read, thanks. And write fairly eloquently too. It's enabled me to get a job and pay my own rent or mortgage since I left college at 17.

Maybe your post should be re-phrased "If anyone who can actually read and who can tell me how my elderly relative can get free care (and I get to keep the wads of cash they've worked all their life for, while I sit back and claim housing benefit) comes along, your advice is welcome"

Transformer

John stiles I really hope the hmrc get onto you pretty quick.

We can all ask again, why do you not move in with your parents and care for them, you would save so much housing benefit you know !!!!!!

Or is the house simply dosh to you? I think it is.

You have had your answers and should perhaps ring the hmrc up if you think you are so in the right, quote this thread as you of course wont mind being up front and say to them how the best way of circumventing the law to get past you !!!!!!!!

You might get the same attitudes, ha ha.

I suggest no one else offers any help to this op due to the nature of his still asking how to get around the law, perhaps he should pay for a solicitor and ask him/her.