Income when on ESA - homeowner?

Mojisola

If you are willing to give up however much the gift amounts to, you can refuse to be involved in her scheme.

With 10 owners, the house could turn out to be a nightmare. What if some of you want to sell it after she dies and others don't? Will you have the income to pay your share of council tax, insurance, maintenance and repairs while the arguments go on?

HappyMJ

It's highly likely that 1/10th of the house will be worth more than £16,000 if each of you get £120 per month from total rent of £1,200. That amount of rent would make the house worth something like £240,000 or even more, Your share would then be worth £24,000 which would disqualify you from all benefits.

If the property is in a trust and you are the beneficiary of the trust then you only need to declare the income. The trust would own the home and you don't own any of it.

xylophone

Re gift into trust

http://www.financialplanning.org.uk/wayfinder/ask-planner-answers-putting-house-trust

Let's hope that Grandma has taken expert advice.

MEsteve

oh dear...looks like Im going to have to deal with this...strange situation...obviously I don't have access to this capital unless I kick my own Grandmother out of the house and somehow manage to persuade an entire family and 9 cousins to buy me out or sell. Or come off this 'gift'...unless there is some sort of trust which I guess would be the best solution...

Mojisola

xylophone wrote: »

Re gift into trust

http://www.financialplanning.org.uk/wayfinder/ask-planner-answers-putting-house-trust

Let's hope that Grandma has taken expert advice.

This is the kind of thing that 'will writers' make a lot of money from setting up so she may have taken what she thinks is professional advice.

xylophone

oh dear...looks like Im going to have to deal with this...strange situation...obviously I don't have access to this capital unless I kick my own Grandmother out of the house and somehow manage to persuade an entire family and 9 cousins to buy me out or sell. Or come off this 'gift'...unless there is some sort of trust which I guess would be the best solution...

You need to find out exactly what arrangement has been made as this could well impact your own benefit/tax position.

Cheeky_Monkey

You need to find out ASAP as, presumably, it could also lead to you having received an overpayment of benefits since you became a joint owner and could potentially have to pay it all back.

Diary

If you have been gifted a house or part of, you cannot simply give it up to claim, or continue to claim benefits - this is a serious situation for you and you require expert face to face help.

You need to find out the facts as soon as humanly possible then inform DWP straight away or any possible overpayment will be accruing very rapidly. If you cannot find out the facts very soon I think you should tell DWP what you are aware of.

MEsteve

Diary wrote: »

If you have been gifted a house or part of, you cannot simply give it up to claim, or continue to claim benefits - this is a serious situation for you and you require expert face to face help.

You need to find out the facts as soon as humanly possible then inform DWP straight away or any possible overpayment will be accruing very rapidly. If you cannot find out the facts very soon I think you should tell DWP what you are aware of.

hi - thanks - can you give me advice on where I can find expert face to face help on this. Citizens Advice?

HappyMJ

MEsteve wrote: »

hi - thanks - can you give me advice on where I can find expert face to face help on this. Citizens Advice?

They aren't that good at representing you if you're not sure of the facts. If you go there and say you guess you own a house they'll possibly give you the wrong answer.

You need to find out how you own the house first.

For just a couple of pounds you can get a copy of the title register which will show who the proprietor is.