Will I lose all my benefits?

Want_to_get_it_right

I live in a house owned by my stepmother, I get housing benefit to pay the rent. I also get income support & council tax benefit. My step mother is leaving the house to me in her will, I know I will lose housing benefit as no rent to pay but what about the rest?

Busybody

When are you expecting your stepmother to die? you may not be on any benefits when it does happen! circumstances change!

seven-day-weekend

If your income is low enough you will be able to keep Council Tax Benefit and if you still fulfil the criteria for receiving income support you should still be able to claim that too.

sulkisu

Unless your stepmother's death is imminent, why assume that you will still be on benefits? How old are you and on what basis are you receiving income support (as opposed to JSA)? I'm not sure, but it might make a difference.

PippaGirl_2

I have been led to believe that you are not eligible for housing benefit if renting a property owned by a close family member. In fact just checked here and that is the case, do the council know you are renting a property owned by your step mother? You are at risk of benefit fraud if you have not told them.

emsywoo123

PippaGirl wrote: »

I have been led to believe that you are not eligible for housing benefit if renting a property owned by a close family member. In fact just checked here and that is the case, do the council know you are renting a property owned by your step mother? You are at risk of benefit fraud if you have not told them.

TOTALLY INCORRECT!

From the Shelter website:

I live in a property owned by a family member

If you live in a property owned by a family member and pay them rent, you may be entitled to housing benefit. The council will want to take a detailed look at your agreement with your landlord. You won’t get housing benefit if:

you're not paying rent on a commercial basis
the arrangement has been set up to take advantage of the housing benefit system – this is called a ‘contrived tenancy’. For example, if your landlord only asks you to pay rent when you are not working (and so are eligible for housing benefit), but not when you are working (and earning too much to qualify for housing benefit), this would be a contrived tenancy.

You quoted this page?! So why state the opposite of what it says?

mikey_bach

Also if you are left a property and it is the home you live in then
this would not be treated as capital.
Unless you sold it of course.....

PippaGirl_2

Sorry, misread the first paragrapgh where it says 'lives with a family member' but actually I do know someone who was not allowed housing benefit when they rented a property owned by their uncle. The tenancy was examined and the rent examined and they did not approve the rental and wouldn't approve the housing benefit. As long as it has been declared and everything is ok then that's fine.

Apologies.

sulkisu

mikey_bach wrote: »

Also if you are left a property and it is the home you live in then
this would not be treated as capital.

Does that depend on the size/value of the property, especially in relation to the individuals housing need?

Then again, probably not. That would be way too sensible..:)

mikey_bach

No in theory it could be a mansion
HB would cease but they would be entitled to full CTB as they owned the property and were on I.S

tomtom256

I would be thinking the tenancy is contrived based on what you say, with regards to the property being left to you in her will, but that's a different story.

Should you still be on benefits when she dies the property will not be classed as capital if you will be living in it. Any other monies/capital that may also be left to you will.

Once she dies and probate is sorted, if needed, declare the ownership straight away. It should not hinder means tested benefits in anyway.

However if she dies whilst you are claiming HB then your LA may look into the commerciality of the tenancy, but then again they may not.

@silkisu no it does not depend on size or value in relation to the individuals housing need. If someone owns a 3/4/5 bed property then so be it, what would you have people do sell their property and move into a smaller property just for benefit purposes. In the current climate who is going to buy it.