Pension credit for mum - urgent question

barnsleynanna

Hi All. Hoping I can find some advice here. My father recently passed away and my mother is claiming state pension. She's never had a bank account before, so we opened one up for her last week and made it in joint names for mum and myself. This was because of all the problems we had when dad died, getting bills paid etc., as the bank account was in his sole name. Anyway, I digress. I'm applying for pension credit for my mum. She has £15000 in savings which is going into the new joint account. Since it's a joint account, do I have to declare this as her 'sole savings' or can I say that it's mine? Age concern seem to lean towards my not declaring it, as feasibly it could my money not hers, and it makes the difference between her getting £17.44 per week and £30.44 per week pension credit........

greenglide

Well, if the money "really is hers" then you ought to declare it.

If they check they may "take a dim view" of what they would consider a deliberate setting up of a joint account to syphon off half the money in it.

Should you not have opened an account in her sole name with you as an authorised signatory?

Do you have POA? It sounds as if you should?

barnsleynanna

The account has not been set up in this way to 'syphon off' money !!! We had a heck of a time sorting things out when dad died as the account was solely in his name, and were advised to open a joint account.....

Mojisola

barnsleynanna wrote: »

She has £15000 in savings which is going into the new joint account. Since it's a joint account, do I have to declare this as her 'sole savings' or can I say that it's mine?

Age concern seem to lean towards my not declaring it

Only if you want to risk your mother being accused of fraudulently claiming PC.

I'm very surprised that an AgeUK advisor would suggest doing so.

Why did you go for a joint account instead of being a signatory on your mother's sole account? That keeps the ownership of the money very clear and straightforward.

Dunnit

You state that the £15k is her money but if you state it is joint money then she can take more money from the government. I hope you know which figure you should declare and what others might think if you did not.

molerat

barnsleynanna wrote: »

The account has not been set up in this way to 'syphon off' money !!! We had a heck of a time sorting things out when dad died as the account was solely in his name, and were advised to open a joint account.....

But that is the way that DWP / HMRC etc will look at it especially if you do not declare it.

xylophone

If the money in the joint account has been provided by your mother, then it is her money and should be declared as such.

This would not prevent the account from passing into your sole name if your mother dies before you and all DDs/SOs etc continuing to be paid until you cancelled them.

For full information on PC see http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true

and note the information concerning "notional capital" and "deprivation of capital" on page 23.

JezR

By default it may be looked at as 50/50 at best. If it was previously just your mother's account and your name has been added, possibly not.

Do also consider the tax situation, particularly if you pay and she doesn't, although with interest rates being what they are this may not be important.

sleepless_saver

She'll be asked for evidence on where the money came from, and that will be used to decide how much of it is hers.

See DWP decision makers guide Chapter 84 (!) para 84262 for an example of how this works..

briclegg

classed as fraud what you want to do.should have account for mother with you as named

Triumph13

To put your question another way:
"I'm thinking about lying about my mother's savings so that she can get £676 a year of your tax money. You don't mind do you?"