gift house, benefits stop?

elyag

My mum would like to gift me her flat as she is moving in with her partner and the flat is unsuitable for his disabilities so they are moving to an adapted council house with level access. She has been told their pension credits will stop if she gifts me the house. Can anyone tell me why this is, as the flat wouldn't be her capital anymore, it would be mine, and she wouldn't continue to live in the house or gain any benefit from it. Also, if this is the case, is there a way round it? many thanks for reading guys

zoominatorone

Is it something to do with deprivation of capital/assets?

Are you working, will it effect benefits you get?

zagfles

Most means tested benefits have "deprivation" rules, where if you deprived yourself of any capital which would otherwise disqualify you from the benefit, or reduce the benefit, then you're treated as still having it.

Google "deprivation of capital", there's loads about it.

northerntwo1

I am not 100% sure but the way it was explained to myself with an elderly relative was the following.

Homes you live in are discounted for benefits reasons. Once you move from that home it becomes as Asset that Capital and Income can be derrived from when dealing benefits.

Therefore when they gift a home - it is the same as gifting money to lower the capital in order to get benefits.

I could be incorrect on this but this is my interpretation.

skintandscared_2

elyag wrote: »

My mum would like to gift me her flat as she is moving in with her partner and the flat is unsuitable for his disabilities so they are moving to an adapted council house with level access. She has been told their pension credits will stop if she gifts me the house. Can anyone tell me why this is, as the flat wouldn't be her capital anymore, it would be mine, and she wouldn't continue to live in the house or gain any benefit from it. Also, if this is the case, is there a way round it? many thanks for reading guys

Your mum can't give away a valuable asset and continue to claim benefits. If she needs the money to live on, she should sell the flat and keep the capital to use for living expenses. A "way round it" would be fraud, and I'm sure that's not what you are asking for.

Mojisola

elyag wrote: »

Also, if this is the case, is there a way round it? many thanks for reading guys

So that you can have a flat for free and us taxpayers can keep giving your Mum money?

elyag

Thanks for your replies I am working full time and not in receipt of any benefits. My mum doesnt work and also doesn't receive any benefits, it only affects her partner's pension credits. The DWP have given them 6 months to sell. Surely their benefits would stop at this point anyway because they have funds in the bank?
She was going to be giving me the flat anyways to help me out as I need somewhere to live, not to get benefits as she isn't entitled anyway.
Thanks again for your replies, I think our hands are tied here. she either loses her house or doesn't live with her partner

elyag

skintandscared wrote: »

Your mum can't give away a valuable asset and continue to claim benefits. If she needs the money to live on, she should sell the flat and keep the capital to use for living expenses. A "way round it" would be fraud, and I'm sure that's not what you are asking for.

She doesnt claim benefit. she just wanted to give me the flat to help me as I can't get a mortgage to buy it from her. It affects her partner's benefits and yes, you are correct< i am not looking for a fraudulent solution, hence asking on a very public forum!!!!!!!!!

elyag

Mojisola wrote: »

So that you can have a flat for free and us taxpayers can keep giving your Mum money?

NOPE, she doesnt claim benefit. I am a taxpayer myself thank you very much and we just wanted to know if there was any way the home could be passed on without affecting her partner's pension credits.

I am completely unfamiliar with this subject and thought I might gain some friendly advice here, obviously not from all.

skintandscared_2

... or just does what they intend to do and her partner foregoes his pension credits. They can use the proceeds from the flat to compensate for it. Or just do without it. If your mum can't afford to move in with her partner without the pension credits, she can't afford to "gift" you her home.

Mojisola

elyag wrote: »

Thanks for your replies I am working full time and not in receipt of any benefits. My mum doesnt work and also doesn't receive any benefits, it only affects her partner's pension credits.

At the moment. Many of us need care of some sort in our later years and the gift of a large asset could be looked at in the future and considered DOC.

Could you "rent" the flat from her for the amount of money that they will lose in benefits at the moment plus the LL expenses she will incur, save like mad for a deposit and be able to move into your own place if she needs to sell the flat in future to fund care needs?

If she doesn't have a will, leaving you the flat, it would be worth getting that sorted.