gift house, benefits stop?

BurnleyBob

Pricivius wrote: »

In the OPs's instance, where are the financial worries? Mum owns a flat so she seems pretty comfortable financially. If she moves in with her partner, she would be expected to use her finances to support them both - I'm struggling to see what's wrong with that?

You're not the only one who's scratching their head about the original poster's scenario.

The mother's not in receipt of benefits so her income will in all likelihood drastically reduce if not totally erase his Pension Credit and any other means-tested benefits he has or can expect to receive as a single person.

So, like you, I can't fathom what the problem is with gifting the OP the property.

elyag

Dunroamin wrote: »

I think that this would really be the best thing or what will happen if anything goes wrong (either through death or a relationship breakdown) and the mother could find herself homeless and unable to claim benefits because she'd given away an asset.

This is exactly what I am worried about and why I just wondered if there was any way of protecting her future. Thanks you for your reply.

elyag

Whiteknight wrote: »

I'm sure others have already given you the answer but I don't have the time to read through this thread.

Your mother has property she no longer needs/wants to live at this property why should she have Pension Credit, she should sell the property and the savings will be added to her and her partners capital.

If she puts the house up for sale it can be disregarded for Pension Credit purposes for up to six month anyway!!!

Why should the state be paying your mother benefits when she clearly does not need them if she can afford to give money away.

She doesnt get benefits. she doesnt have any income at all. she also has no savings. the house is the only she has from her divorce. I am completely clueless about all this, hence my post. I am not looking to commit fraud or anything like that, I just didn't know where to start for INFORMATION as Im very young and havent ever had to know about any of this and am just trying to help my mum. If you had read the thread, you wouldve seen this.

elyag

BurnleyBob wrote: »

You're not the only one who's scratching their head about the original poster's scenario.

The mother's not in receipt of benefits so her income will in all likelihood drastically reduce if not totally erase his Pension Credit and any other means-tested benefits he has or can expect to receive as a single person.

So, like you, I can't fathom what the problem is with gifting the OP the property.

She isnt comfortable financially. Her partner is on DLA and cannot work. She has no benefits or income of her own because this would then be deducted from his. The flat is her only asset. she is going to sell it as the DWP have asked her. i just wondered if there was any way I could protect her future. I think she should rent it out and use the money in place of PC and keep the flat as an asset

Marisco

elyag wrote: »

This is exactly what I am worried about and why I just wondered if there was any way of protecting her future. Thanks you for your reply.

Why can't you rent the flat off her? If you are not claiming benefits then "contrived tenancies" doesn't come into it. So if the relationship does break down then she will still have her flat to return to. He's going to lose his pension credits anyway, so the rental income won't make any difference to the outcome.

margaretclare

elyag wrote: »

She doesnt get benefits. she doesnt have any income at all. she also has no savings. the house is the only she has from her divorce. I am completely clueless about all this, hence my post. I am not looking to commit fraud or anything like that, I just didn't know where to start for INFORMATION as Im very young and havent ever had to know about any of this and am just trying to help my mum. If you had read the thread, you wouldve seen this.

I can't believe she has *no* income at all. What does she live on, how does she buy food etc, pay for utilities? Most people have some kind of an income. If she's retired then she should be getting retirement pension. No income? Come on!

Mojisola

Have you suggested to her that she keeps ownership of the flat but that you move in, pay her whatever they will lose in benefits and put savings aside in case you need a deposit?

If she doesn't ever need the capital from the flat to pay for care in future, you will end up with a low "rent", some savings and still inherit the flat.

Idiophreak

elyag wrote: »

She doesnt get benefits.

I think if you hadn't called the thread "benefits stop" you'd have saved yourself the hassle of writing that over and over...

Dunroamin

elyag wrote: »

This is exactly what I am worried about and why I just wondered if there was any way of protecting her future. Thanks you for your reply.

That's easily sorted. Your mother can rent it to you, use the rent money to cover the partner's drop in benefits and have a home to come back to if things don't work out.

BurnleyBob

margaretclare wrote: »

I can't believe she has *no* income at all. What does she live on, how does she buy food etc, pay for utilities? Most people have some kind of an income. If she's retired then she should be getting retirement pension. No income? Come on!

Presuming that what the OP has posted is actually true, then I think we're getting nearer to the real situation... the mother has no visible income and also has no visible capital and savings except for the property which cannot be made to disappear from view.

By donning your deerstalker hat, can you advance a neater conclusion to this enigma?