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Deprivation of capital

13

Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    baza52 wrote: »
    thanks HappyMj.


    Im asking about deprivation of income rather than assets or capital.
    For example. The person concerned could buy jewellery with their non means tested benefits while using capital to pay for living expenses.
    You can do whatever you like with income. Unspent income counts as capital the day you get the next payment. You can throw it away on whatever you want. Flush it down the loo if that's want you want to do with it. There are only guidelines in regards to deprivation of capital and what that can be spent on. You do not need to live on the breadline with £20,000 in the bank.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • baza52
    baza52 Posts: 3,029 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    HappyMJ wrote: »
    You can do whatever you like with income. Unspent income counts as capital the day you get the next payment. You can throw it away on whatever you want. Flush it down the loo if that's want you want to do with it. There are only guidelines in regards to deprivation of capital and what that can be spent on. You do not need to live on the breadline with £20,000 in the bank.



    Thank you.
    That's what I wanted clarifying ;)
  • Murphybear
    Murphybear Posts: 8,091 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    When my Housemate got a small lump sum pension he bought a new large fridge and freezer, washer dryer and dishwasher, all top of the range so expensive. The old ones (same brand) had lasted 20 years so they will see him out. He also bought a laptop and replaced the car with a 10 year old Lexus that cost £4000. The local council accepted all of this as necessary and not d of c.
  • tyllwyd
    tyllwyd Posts: 5,496 Forumite
    edited 15 July 2015 at 12:26PM
    I have no idea if this is possible or whether it would cause other problems, but when my grandmother died my father used a deed of variation so that some of his inheritance came directly to his children. I wonder if a deed of variation could be used to redirect some of her inheritance to you, so that you could buy and gift her something that she needs.


    Edited to say - someone later on has posted to say that would be deprivation of assets if she is claiming means tested benefts, so this is a non-starter, sorry!
  • Froglet
    Froglet Posts: 2,798 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Thank you everyone for all the helpful and interesting suggestions.My sister does not have a computer but I am seeing her today and have written down all the relevant suggestions and info.


    As she lives with our Mum she wouldn't be able to replace some of the items as it is not her own property,i would imagine.Mum is able to replace those if necessary and they might then look upon it as deprivation of capital if my sister claimed a new oven,television etc was needed.The shower idea is a good one though.


    She knows she need to get some official advice but we can't do anything until we know how much it is going to be and how much over the £16k it will be.The pension contributions would hopefullyhelp,and she does want to build hers up more for her retirement.


    Of course when Mum goes the question won't arise as the amount left then will be enough to see her be able to rent somewhere and manage on that until her state pension and private pension come in.


    She is not going to get rid of her money as quickly as possible in order to claim again,she just needs to know that when her capital does drop they are not going to penalise her for what she has needed to spend up until then.


    Thanks again ,really appreciated .
  • Mojisola
    Mojisola Posts: 35,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    tyllwyd wrote: »
    I have no idea if this is possible or whether it would cause other problems, but when my grandmother died my father used a deed of variation so that some of his inheritance came directly to his children. I wonder if a deed of variation could be used to redirect some of her inheritance to you, so that you could buy and gift her something that she needs.

    It's counted as deprivation of capital if you use a deed of variation so that a beneficiary can continue to receive means tested benefits.
  • SandraScarlett
    SandraScarlett Posts: 4,133 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    First of all, what a great example you're setting in caring for your sister, and how fortunate she is to have someone helping her. :A
    Alas, so many poorly people have nobody at all. Does your sister have a relax-and-rise armchair? What about a "do everything" bed? These are more than acceptable as examples of equipment that would make her life easier.


    My best wishes to all your family.


    xx
  • karmacookie
    karmacookie Posts: 577 Forumite
    A bit morbid perhaps, but pre paying funerals does not count as deprivation of capital :)
  • Froglet
    Froglet Posts: 2,798 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    First of all, what a great example you're setting in caring for your sister, and how fortunate she is to have someone helping her. :A
    Alas, so many poorly people have nobody at all. Does your sister have a relax-and-rise armchair? What about a "do everything" bed? These are more than acceptable as examples of equipment that would make her life easier.


    My best wishes to all your family.


    xx

    Thank you so much for your kind words.My Mum,though elderly does the most caring but in periods of time when my sister is not too bad she helps her as much as possible in return.I am the taxi for them both and sort out the finances for them,or any info they need from the internet.

    My sister was very grateful this morning for all the advice.It has given us lots to consider and research.The prepaid funeral is an idea we hadn't thought of.The armchair is another one,she always needs to put her feet up when sitting.
  • sammyjammy
    sammyjammy Posts: 7,994 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Just a thought but is all her ESA definitely income based? You said she had a good job before she became ill? It might be worth checking.
    "You've been reading SOS when it's just your clock reading 5:05 "
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