Benefits & Pension income

loucroft

Hi All

I wondered if there is someone that could answer this for me:

My Dad left my mum suddenly almost a year ago, she has since had to declare herself homeless and the family home has been rented for years - the mortgage is not paid by her and she doesn't benefit from the rental.

6 months ago she applied for her pension to be paid out, as her doctor did not say she could not work they would not pay it. The doctor now realises that she will not be fit for work and the pension has decided to pay out.

Question is, the pension will give her a lump sum, plus 200 per month. This will affect the benefit she is receiving, but by how much? The lump sum she is giving to us.

How does it affect her and benefits etc? She had a letter yesterday and will contact the Jobcentre/dwp first thing but wants to - of course - know what to expect

Thanks in advance
L

karenx

She needs to be careful about giving you the lump sum, could be seen as deprecation of capital and will be seen as still having the money.
Is she still named on the mortgage on the house?

[Deleted User]

she cant give the lump sum to anybody in order to qualify for benefits,thats deprivation of capital and if she did she would be treated as still having the money and means tested benefits would be reduced accordingly(depending on the sums involved)
is she going to claim ESA,or her state pension?is her name on the rented out property as owner/part owner?
afraid more details are needed to get a full answer

loucroft

Hi, thanks for your quick reply!

Just finding out, I'm not sure but they have agreed a 50/50 split of the profit from the house, if it ever sells

I thought it would just be a gift to us and go under the radar - its no good her giving it away if she is affected even when she doesn't have it, very very confused !

[Deleted User]

it does of course depend on what benefits she is claiming/going to claim

karenx

Whats confussing about it???? She gets given money and can live off it therefore not needing to claim benefits. Why should she be allowed to give it away and claim benefits?

tanith

Who is paying the mortgage on the house? and who is benefiting from the rental? It appears her name is on the mortgage if she is going be in receipt of 50% of the profit when it is sold this will be an added complication. Nothing goes 'under the radar' where benefits or DWP are concerned..

McKneff

How old is she and why is she not benefitting from the rental of the house she partly owns.

tartanterra

loucroft wrote: »

I thought it would just be a gift to us and go under the radar.

Income is still income, even if someone decides to give it all away.

Makes sense when you think about it. Otherwise everyone would be "gifting" their income and reaping thousands in benefits.

As for the house, if your mother owns 50% of an asset that produces income, then the benefits office will be very interested in knowing what that income is.

Oldernotwiser

loucroft wrote: »

Hi All

I wondered if there is someone that could answer this for me:

My Dad left my mum suddenly almost a year ago, she has since had to declare herself homeless and the family home has been rented for years - the mortgage is not paid by her and she doesn't benefit from the rental.

6 months ago she applied for her pension to be paid out, as her doctor did not say she could not work they would not pay it. The doctor now realises that she will not be fit for work and the pension has decided to pay out.

Question is, the pension will give her a lump sum, plus 200 per month. This will affect the benefit she is receiving, but by how much? The lump sum she is giving to us.

How does it affect her and benefits etc? She had a letter yesterday and will contact the Jobcentre/dwp first thing but wants to - of course - know what to expect

Thanks in advance
L

If she receives any means tested benefits, has she declared that she owns half a house?

McKneff

ONW, maybe another can of worms............................