Mum in law sold her house and moved into council flat...

SandraScarlett

aeuerby wrote: »

....and with the proceeds of her house sale she wants to give her 3 children £10000 each as their inheritance.
This will leave her with approx. £18000 when she has paid off her debts and moving fees.

Now, my hubby and I say she cannot give that money away and then claim benefits like Housing benefits, Council Tax benefits and pension credits (she's 66), she says she's spoken to a financial advisor and he has told her as long as she has no more that £16K she can claim benefits.

Does anyone know if she is able to give this money away and claim benefits please? (I hope my question makes sense)

Your heading suggests she has already sold her house and moved into Council Property. How did that work?

xx

sleepless_saver

SandraScarlett wrote: »

Your heading suggests she has already sold her house and moved into Council Property. How did that work?

xx

Being a home owner doesn't stop anyone applying for council accommodation - and getting it if they meet the criteria. She may for example need different housing because of disability.

I agree with the other posters about the deprivation of capital problem - but does she have an assessed income period for the pension credit? If so, the capital may not be such an issue.

SandraScarlett

sleepless_saver wrote: »

Being a home owner doesn't stop anyone applying for council accommodation - and getting it if they meet the criteria. She may for example need different housing because of disability.

I agree with the other posters about the deprivation of capital problem - but does she have an assessed income period for the pension credit? If so, the capital may not be such an issue.

Well, I never knew that! Thank you, MSE is such an insight.

xx

pmlindyloo

sleepless_saver wrote: »

Being a home owner doesn't stop anyone applying for council accommodation - and getting it if they meet the criteria. She may for example need different housing because of disability.

I agree with the other posters about the deprivation of capital problem - but does she have an assessed income period for the pension credit? If so, the capital may not be such an issue.

From what the OP has said I do not think that the OP's MIL was on Pension Credit, just that she thought hshe could claim it when she moved into the council property. (May be wrong though )

Also, although it is true that if you have an assessed income period you do not have to notify them of any changes for the length of that period - you do have to notify them if you are no longer entitled to PC.

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/pc10s-guide-to-pension-credit/assessed-income-period/#endsearly

Depending on how much the OP's MIL got from the sale of her house/fees etc she may not be eligible for PC even taking into account the generous capital disregards.

margaretclare

sleepless_saver wrote: »

Being a home owner doesn't stop anyone applying for council accommodation - and getting it if they meet the criteria. She may for example need different housing because of disability.

I agree with the other posters about the deprivation of capital problem - but does she have an assessed income period for the pension credit? If so, the capital may not be such an issue.

I know of several people around where I live who've done just that, for the simple reason that they wanted 'sheltered'-type accommodation but didn't want/couldn't afford the only other alternative, the McCarthy & Stone type housing. I've even considered doing it myself if I was ever to be left alone, because some of these 'Millview Court' kind of places are very nice. We've been in some of them when DH has acted as a volunteer helping them set up their laptops, their skype etc.

That doesn't mean, though, that they claim any benefits! There's still rent to pay, and they pay it. They live on their pensions and any other resources that they have, paying their way.

I_luv_cats

Icequeen99 wrote: »

There is no capital max limit for pension credit (first 10,000 ignored and then £1 income is deemed for every £250 of capital), and if she gets pension credit then my understanding is that she would automatically get HB/CTB i.e. the 16,000 limit wouldn't apply to those.

If she doesn't qualify for PC, then the £16,000 limit would apply.

However, i would suggest you look carefully at deprivation of capital rules, basically if you get rid of money to bring yourself down to the limit DWP can still treat you as possessing that money. I doubt a financial advisor will know the ins and outs of the benefits system.

IQ

https://www.gov.uk/pension-credit/eligibility



savings, investments over £10,000 - for these £1 is counted for every £500 or part £500

Icequeen99

I_luv_cats wrote: »

https://www.gov.uk/pension-credit/eligibility



savings, investments over £10,000 - for these £1 is counted for every £500 or part £500

Just came back to correct my post, forgot we were in PC.

IQ

xylophone

http://www.ageuk.org.uk/Global/Age-Cymru/Factsheets%20and%20information%20guides/FS53%20Capital%20income%20and%20means%20tested%20benefits%20April%202012.pdf
might be helpful.

wayne0

Icequeen99 wrote: »

Just came back to correct my post, forgot we were in PC.

IQ

housing benefit is £1 per £250 over 6 grand for a couple, or 3grand for a single person though

miduck

wayne0 wrote: »

housing benefit is £1 per £250 over 6 grand for a couple, or 3grand for a single person though

That is not the case for those on Pension Credits, and the £3,000 limit does not apply to claimants of any age!