Gifted a house but on DLA/PIP

gweimo

I am in the very fortunate position of having parents with some money. I'm living in a pretty awful (mold, broken electrics, rubbish landlord who owes me money) rented house now and they've decided they're happy to buy a house (early inheritance so to say) and put it in my name. However i'm disabled and currently on DLA (soon to be PIP) and this is unlikely to change right now. How will my benefits change? I know obviously HB will go (!!) but what about council tax reduction, income support, careers allowance for my husband etc.

I'd really appreciate any help/advice you can offer me.

HappyMJ

Are you moving in to it?

Move in and you will only lose HB.

Mojisola

Once you own your own house you will be responsible for maintenance and repairs. Will that be financially possible for you - be careful that a kind gift doesn't turn into a millstone.

gweimo

Yes we (husband and i) will move in, it will be our home. Thank you for the advice regarding insurance, maintenance etc. TBH our landlord now is so awful we've been paying for everything anyway in order to keep a basic standard.

xylophone

TBH our landlord now is so awful we've been paying for everything anyway in order to keep a basic standard.

Good grief, why did you not move out?

Presumably you and your husband will own the gifted property as tenants in common?

Are there IHT considerations for your parents?

Might there be deprivation of assets considerations for your parents?

For either of the above, they should keep a note with their wills of the amount of the gift and for the second, write a letter to you evidencing the gift and stating the reason for it - to support a disabled child etc.

gweimo

Because we have 3 (rescued) dogs and are on HB and want to live near husbands mum as she helps a hell of a lot (a true angel). Getting a house to rent around here is VERY hard and we know we'd never get another. I've tried.

It will be in my name and my husband will sign a post-nup thing as they want to ensure it is mine heaven forbid we divorce.

Sorry what is IHT?? Also lost regarding deprivation of assets. Sorry, i'm on a new med and my brain is not firing on all cylinders.

My parents live abroad and have done for a very long time and would rather not have property in the UK any more.

Norman_Castle

Sorry what is IHT?? Also lost regarding deprivation of assets.

IHT is inheritance tax. Deprivation of assets is spending your money with the expectation of getting benefits when your savings are below a certain level.

gweimo

My parents are not doing deprivation of assets, they're in China and have their own house.

Yes I think IHT could be an issue. They do not have bank accounts or any assets in the UK anymore however.

gweimo

Should mention they're British, not sure if that matters,

SnowWhiterThanWhite

My brother is in receipt of PIP and this also entitles him to council tax benefit. It works out around £15 a week benefit based on enhanced PIP (without mobility issues). He doesn't claim anything else. I did think that as long as you qualified for PIP, this automatically entitled you to Council Tax benefit? HTH

Mojisola

gweimo wrote: »

I am in the very fortunate position of having parents with some money.

However i'm disabled and currently on DLA (soon to be PIP) and this is unlikely to change right now. How will my benefits change? I know obviously HB will go (!!) but what about council tax reduction, income support, careers allowance for my husband etc.

By buying you a house, your parents are saving the taxpayer the cost of your HB. Owning your own property won't have any impact on your other benefits.