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

millie.molly.mandy

Maybe she is putting the proceeds in an off shore bank account. Then all her normal bank accounts would look pretty poor.
People have a way of beating a system if they want to, I still have an old bank account open in my mothers name who is now deceased, never bothered to close it, has about £5 in. I am not condoning the action, but it's interesting how people can work around rules if the need requires.

skintandscared_2

It's not "interesting". It's fraud.

paddedjohn

Druagh wrote: »

A bit 'off topic' but, I went to into a bank last week to try to change £2 worth of 1p and 2p coins into £1 coins, I was refused as I did not have an account there "..all cash transactions have to be traceable."

On this evidence, withdrawing or depositing £30,000 in cash would likely trigger an MI6 raid, never mind DWP interest...

Its got nothing to do with tracing the transaction, the banks are there to make money and some wont offer their services to non account holders. Ive been refused before now in some banks but also served with change at other banks even though ive got no ties to them.

aeuerby

SandraScarlett wrote: »

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

xx

She has indeed already sold her house, but not completed yet. Hence us trying to stop her making fraudulent benefits claim, if she does try to claim that is. I'm not sure she will but she still needs to know.

We're not entirely sure how she managed to get this flat but are assuming its down to it being in an over 60's only building and she got a letter from her gp. I'd hope the council wouldn't give anyone any of their properties if they didn't meet the criteria? Since all this kicked off MIL won't be honest with hubby because he keeps asking questions and she doesn't like it. Like i said, one stubborn lady.

sleepless_saver wrote: »

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 don't know the answer to this, it's one to ask though, thanks.

Thank you all for your help and the links. We will show them to MIL, she can argue with hubby about it and tell him its her money to do with as she wants, but she can't argue with the printed word!
:T

sleepless_saver

aeuerby wrote: »

I don't know the answer to this, it's one to ask though, thanks.

As pmlindyloo pointed out above, the assessed income period would only apply if she was already claiming pension credit. So no need to ask if she's not currently getting PC. My bad.

Voyager2002

millie.molly.mandy wrote: »

Maybe she is putting the proceeds in an off shore bank account. Then all her normal bank accounts would look pretty poor.
People have a way of beating a system if they want to, I still have an old bank account open in my mothers name who is now deceased, never bothered to close it, has about £5 in. I am not condoning the action, but it's interesting how people can work around rules if the need requires.

The Benefit people receive information about claimants' bank accounts and finances from the tax people (HMRC), who are pretty good at noticing traces of offshore bank accounts and so on. A large transaction (such as a house sale) would certainly leave traces that are visible to HMRC. Yes: I'm sure that it is possible to "beat the system" but in order to do so one would have to be very expert and know exactly what one was doing. Since the old lady in question is apparently having to ask some fairly basic questions, I am confident that she would get caught if she tried something like this.

margaretclare

We're not entirely sure how she managed to get this flat but are assuming its down to it being in an over 60's only building and she got a letter from her gp. I'd hope the council wouldn't give anyone any of their properties if they didn't meet the criteria?

It is possible, I know people who've done this. Put it this way, they'd got to a stage where they could no longer manage the maintenance, the gardening, they couldn't physically do things for themselves and it gets expensive if you're paying painters and decorators, gardeners, cleaners. Even in a bungalow it can get difficult. The only alternative is either just leaving it to get neglected and that, as I was told many years ago, is a dead give-away for the opportunist thieves and people coming to the door to rip you off. The local papers are full of these instances. So, they don't want all the work and worry that goes with having your own house - especially if you're widowed and alone - but they're not yet ready to go into a care home. They want a little place of their own where they can shut the door, do their own bit of cooking, but have company as and when they feel like it.

This was suggested to me at one time, before I got together with my now DH. Anyone over 60 could apply for one of these because there were more 'sheltered' type mini-flats than there were people who wanted them. As I said, I know quite a few of them. They still go out into the town, go to the shops, the hairdresser, to church, potter about, but they don't have the worry of their own house. They do pay for it, though. I don't know what the charges are, and if they have savings/investments it's no one's business, because they're not claiming any means-tested benefits.

http://www.housingcare.org/housing-care/facility-info-80117-millview-court-rochford-england.aspx

skintandscared_2

Voyager2002 wrote: »

The Benefit people receive information about claimants' bank accounts and finances from the tax people (HMRC), who are pretty good at noticing traces of offshore bank accounts and so on. A large transaction (such as a house sale) would certainly leave traces that are visible to HMRC. Yes: I'm sure that it is possible to "beat the system" but in order to do so one would have to be very expert and know exactly what one was doing. Since the old lady in question is apparently having to ask some fairly basic questions, I am confident that she would get caught if she tried something like this.

Absolutely right. For instance, recently a new UK/Swiss Agreement came into force whereby Swiss banks are now under an obligation to make disclosure to UK HMRC about UK residents who have accounts and the balance in those accounts. So stashing money offshore is no longer an option either.

At the end of the day, the MIL being "stubborn" is irrelevant. She can stubbornly refuse to accept the law, give the money away then struggle as the government refuse to give her any benefits. Her choice entirely. Then she can stubbornly freeze/starve when she has no money to support herself. Rules are rules and she should choose to ignore them at her peril.

aeuerby

A quick update.
She has spoken to her solicitor who has printed off and shown her the rules from the ageuk website.
She has seen sense and is keeping her money to live off!

I refer to her being stubborn by way of trying to explain what we thought and not giving her money away and her saying to hubby its non of his business in what she does with her money.

Thank you again for all help. I appreciate it! Well all but 1 post anyway!

roddydogs

Dont understand how apparently the "House" was only worth about £55,000.