Income when on ESA - homeowner?

Diary

MEsteve wrote: »

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

A benefits specialist solicitor is the best but they are very scarce, other than that citizens advice. Please do it very soon or inform DWP of what you know to avoid any more over payment than might be accruing now.

You also need to find out what the other owners relationship to you are in the terms of the estate, for instance are you whats called ' tenants-in-common'? It's an absolute nightmare situation and really terrible idea of your grandmothers.

MEsteve

this is the problem when you have family who ignore your suffering and illness and don't know anything about benefits...

Anyway I have done some research and found that there are some cases where capital is disregarded:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/365782/hbgm-bw1-assessment-of-capital.pdf

180 Certain types of capital assets should be disregarded in full.

ii premises owned by the claimant and occupied as the home of – a partner or relative who has reached the qualifying age for Pension Credit, or who is incapacitated. For the definitions of relative and incapacitated, see Annex A at the end of this chapter

My Grandmother has reached the age of pension credit. So I assume the capital will be disregarded.

Mojisola

MEsteve wrote: »

My Grandmother has reached the age of pension credit. So I assume the capital will be disregarded.

Until you know the facts of what she has done and whether you actually own anything, you can't be sure.

If you are now an owner of her home and are going to be receiving rent from her, you need to know and to talk to the DWP about the situation.

MEsteve

Mojisola wrote: »

Until you know the facts of what she has done and whether you actually own anything, you can't be sure.

If you are now an owner of her home and are going to be receiving rent from her, you need to know and to talk to the DWP about the situation.

yes I am trying to sort that out this weekend - nailing it down...

HappyMJ

MEsteve wrote: »

yes I am trying to sort that out this weekend - nailing it down...

Have you got a copy of the title register yet?

https://www.gov.uk/search-property-information-land-registry

MEsteve

HappyMJ wrote: »

Have you got a copy of the title register yet?

https://www.gov.uk/search-property-information-land-registry

thanks not yet - I need to get the exact address...

If its only 4 its possible I wont be on it...

HappyMJ

MEsteve wrote: »

thanks not yet - I need to get the exact address...

If its only 4 its possible I wont be on it...

That's why I think it's been put into a trust and you are the beneficiary of a trust. The title register should have the name of the trust as the proprietor. You don't own the trust so you won't have capital issues but until you know this then all we can do is just speculate.

awindup

There are two sides to this and I will try and simplify it. First of all there is the rental income which you must declared immediately as this counts as earnings.
If the house has a mortgage then you take the market value of the property - what is owed divided by your share 1/10th in your case.
If the value of your share exceeds 16000 you won't get any income related benefit like housing benefit,income relayed esa... ETC.
If you try to dispose of your asset so you get your benefit that you may be accused of asset dumping and prosecuted severely! So be careful on any advice about transferring it or cashing in and spending it frivolously. This will be scrutinized
I hope this helps and I urge you to look at the ".gov " website to see the thresholds at which you lose any of your benefits because it varies depending on your circumstances.
Remember you are potentially thousands better off and therefore until you are no longer better off you do not need the benefits! You should not seek to defraud the system in anyway but neither should you lose out

xylophone

I am assuming that the property is not mortgaged as it has been gifted either to the grandchildren individually or into a trust of which they are the beneficiaries.

If the property is now in Trust, then the rent paid by the grandmother is payable to the Trust - the Trustees will be bound by the Trust Deed and the nature of the Trust as to how Trust income is disbursed.

If it is in Trust, then the Trustees need to be aware of their responsibilities in respect of registering the Trust with HMRC, completing the Trust tax return, paying tax etc.

Presumably the OP would need to advise whichever agency is responsible for paying the benefits of any trust income received?

If the property is not in a Trust but is a gift to all the grandchildren, then the fact that it is registered in four names would not change the fact that the OP is the beneficial owner of a share of the property so has a capital asset- presumably this should be declared, whether or not it would be disregarded.

The OP would then be due a share of the rental income which presumably must also be declared.

[Deleted User]

CAB or preferably a solicitor, personally i'd tell her where to stick her 1/10 th of the house, seems she wants to simplify her affairs whilst making yours more difficult, I'm not even sure how this could be done without the signatures of ALL involved.