Gifted deposit & Housing benefit

Mojisola

dicus1 wrote: »

As they couldn't afford to buy in the area we live we decided between us that I would buy an apartment for them to live in and they would gift the deposit (£48,000) which is what they had sold their flat for and we in turn would allow them to live rent free for the rest of thier lives.

This is the problem with setting up these kind of family arrangements. You promised life-long rent-free living and can't keep your promise.

As it's unlikely that HB will be paid in a situation like this, you're going to have to do some lateral thinking to find a solution.

krlyr

Not quite getting the digs at OP for his MIL claiming HB - presumably none of you use "my" tax money on NHS services, your children's education and so on?
Technically, has OP not saved "us" money by paying for his FIL & MIL to live there without claiming any benefits - they would have had to live somewhere and there's no guarantee that if they'd stayed put they'd still have had their own house by now - perhaps may not have been able to afford it, had to sell up and rent elsewhere, and claimed HB.
Benefits are there for a reason, not everyone on there is a benefit cheat or someone work-shy expecting us to pay for them to live a life of luxury, I certainly don't begrudge my taxes going to a 90 year old woman who wants to keep a bit of independence while she still has her good health.

Googlies_2

dicus1 wrote: »

what I am actually trying to do is to avoid putting mother in law on the street

You sold your MIL a life time tenancy, unfortunately you now have financial issues but that means it should be you that faces being out on the street not your MIL.

BigAunty

It's either the contrived tenancy rule that is the basis of the rejection - namely that as the tenant is closely related to the landlord and did not have to originally pay rent, she will be treated as if the tenancy has been concocted in order to get HB.

Or the HB claim has been rejected because of deprivation of capital rules. For means tested benefits and services like care, the DWP/HMRC/Local council have regulations that try to prevent people from giving their capital away, such as gifting it to relatives, in order to maximise their eligiblity for benefits. It's supposed to be about someone deliberately doing this so they can claim benefits. She may encounter problems if she ever needs means tested care, including a care home, as the organisation, if they think there is deprivation of capital, will treat her as if she still has the £48k (known as 'notional capital').