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pay off mortgage - deprivation of assets?
zaksmum
Posts: 5,529 Forumite
A friend will get a lump sum of 15K in May, when she turns 55, as part of a pension settlement from her ex husband.
She currently has about 5K in savings and gets DLA HRM, and the disability element of WTC. She works 30 hours a week.
She's aware that her entitlement to WTC will stop when she gets this money. However, she has a mortgage with about 16K outstanding.
If she paid off her mortgage completely with the lump sum and a bit from her savings, would this be considered deprivation of assets?
She wants to make sure everything is completely legal.
She currently has about 5K in savings and gets DLA HRM, and the disability element of WTC. She works 30 hours a week.
She's aware that her entitlement to WTC will stop when she gets this money. However, she has a mortgage with about 16K outstanding.
If she paid off her mortgage completely with the lump sum and a bit from her savings, would this be considered deprivation of assets?
She wants to make sure everything is completely legal.
0
Comments
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her entitlement to wtc wont stop as it is based on income and not capital ( only interest on capital above £300 a year)
so the money is hers to spend as she likes0 -
As above its capital not income so her choice to pay mortgage or not.0
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Thanks nannytone and princessdon. That's great news for her and she'll be well happy to hear it!0
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