Selling house and pension credit

Crispy2duck

My parents have sold there house and wish to gift me the equity from this 130000 as a deposit on a 200000 house I would have a morgage of 80000 and they would live with me. This is all the money they have. They current get pension credit and have inform works and pention of the sale of there house they will be assessed in 2014. My question is this can they gift me the money and then live with me with out losing there pension credit.

HB58

Yes, your parents could be treated as if they still have the money and this would affect their pension credits (and also possibly their eligibility for state funded care in future). This is because this situation could be viewed as Deprivation of Capital.

dseventy

Why would your parents want to give away £130K and then have to worry/qualify about pension credit?

D70

Dunroamin

dseventy wrote: »

Why would your parents want to give away £130K and then have to worry/qualify about pension credit?

D70

And why would any normal "child" wish them to do so?

Crispy2duck

Because they have sold there home and would like somewhere to live.

princessdon

Crispy2duck wrote: »

Because they have sold there home and would like somewhere to live.

They can buy somewhere new - a smaller home or bungalow etc

missapril75

Crispy2duck wrote: »

Because they have sold there home and would like somewhere to live.

There will be some who say they shouldn't have sold it if they want somewhere to live.

There will be some who say the taxpayer should not be subsidising your home purchase - by paying them Pension Credit when they would otherwise have had capital.

I daresay there will be some who say it's not fair that some parents can't help their offspring as others can.

But it may all be academic.

There's a very good chance Pension Credit won't be paid for the reasons referred to.

But how much is it anyway? It might only be a few quid on top of their other pensions. It might not be that much to lose. Especially as they'll no longer have a house to run and its associated costs.

tomtom256

Sorry sounds to me like they want to hide there money/give you inheritance and still live off the state.

As previously stated this will be seen as deprivation of capital and they will probably be treated as still having the money/capital when reassessed in 2014.

If they want somewhere to live they could downsize and live off the rest of the capital then reapply for pension credit.

Plus if they don't have to pay rent, they will not need said pension credit to top up their income.

Not the answer you want I know but why should the state fund them so you can have a big house/inheritance?

Mojisola

Crispy2duck wrote: »

My parents have sold there house and wish to gift me the equity from this 130000 as a deposit on a 200000 house I would have a morgage of 80000 and they would live with me. This is all the money they have. They current get pension credit and have inform works and pention of the sale of there house they will be assessed in 2014. My question is this can they gift me the money and then live with me with out losing there pension credit.

Why aren't they buying a house with you - what's the thinking behind gifting you all their money? That wouldn't affect their PC and wouldn't be considered DOC if they need further help in the future.

There are other possible problems for the future and it's worth considering all eventualities before you go into an arrangement like this.