Pension Credit - with house

Mozzfather

Hi My parents are splitting in the mid 70's. They own a bungalow and my mum wants to sign her half of the the house over to myself and siblings so my father can continue to live in it - as he has restricted mobility. Currently the house is an asset for pension credit but if my mother does this can she access pension credit - or is this seen as deprivation of assets?

Any advice would be so welcome as we are just trying to find a way to keep dad in the bungalow..

Many thanks

marliepanda

Almost certainly. Is there no way for you to actually buy it off her rather than it being gifted.

[STRIKE]I could MAYBE see her signing it over to your dad, but not to you.[/STRIKE] CHanged my mind.

Mozzfather

Many thanks....Who would be need to find out from - assume financial adviser is more to do with investments than benefits...

Ames

It's not just an issue for pension credit, it could be seen as deprivation if she needs a care home in the near-ish future, and there could be implications for inheritance tax.

Mozzfather

Care is unlikely in the next seven years and the amounts are well below inheritance tax (140K for her share - no other assets and 72.00 per week state pension)

Thanks

TELLIT01

There is no need to sign the house over to anybody in order for you father to continue living there. If he is disabled he will in all probability be allowed to stay there and the property can be disregarded for benefit purposes. They need to get advice from Citizens Advice or similar before considering any changes.

The one thing which is almost certain, signing her interest in the property over to her children would be classed as deprivation of capital and would have a serious effect on any later claim for income related benefits.

marliepanda

TELLIT01 wrote: »

There is no need to sign the house over to anybody in order for you father to continue living there. If he is disabled he will in all probability be allowed to stay there and the property can be disregarded for benefit purposes. They need to get advice from Citizens Advice or similar before considering any changes.

This is for a disabled relative, which Im not sure an ex husband would qualify as...

Mojisola

Mozzfather wrote: »

Care is unlikely in the next seven years and the amounts are well below inheritance tax (140K for her share - no other assets and 72.00 per week state pension)

There is no seven year rule for deprivation - only for inheritance tax.

TELLIT01

marliepanda wrote: »

This is for a disabled relative, which Im not sure an ex husband would qualify as...

That's why I said to get advice. They are still currently married and separation, even permanent, doesn't necessarily always lead to divorce.

Alice_Holt

Re entitlement to PC look at:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/687298/pension-credit-detailed-guide-pc10s.pdf
P30 on deals with Capital disregards.


Re "signing over"
I presume they are tenants in common? Legal advice may be advisable.

xylophone

Do your parents own the bungalow as joint tenants or as tenants in common?

Either way your father has the right to live in his home.

Even were your parents to divorce I imagine that in view of his disability any settlement would give him the right to stay there.

Remember the situation with regard to their wills if tenants-in-common.

https://www.co-oplegalservices.co.uk/making-a-will/wills-and-tenants-in-common/

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf