Implications of gifted house for UC

maryspecial

My mother gifted her house to us 4 children many years ago with a clause that she lives her day in it. Due to a v unexpected separation I now need to apply for universal credit. Will my share in house count as an asset or capital for me and prevent me claiming even tho I can't obviously access the asset as my mother lives in the house?

calcotti

As you are legally prevented from realising the value of the house it should be ignored but you should declare it.

See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/843713/admh1.pdf
Paragraph H1638

huckster

Agree that if the house is now legally owned and registered with land registry in the same of the 4 children, that this needs to be disclosed to UC. They will ignore the capital share up to date your mother dies and then 6 months or 12 months afterwards to allow capital share to be realised. But then might want to include the capital share value.

Having seen such legal documents before, where a house is to be inherited by children, normally there are clauses, where the house could be sold to pay for mothers care requirements. So if your mother needed a care home, it would be an asset to pay for this. As such the home is not really gifted before death.

maryspecial

Thank you so much. Such a relief. There is so much to consider and process and you have settled my mind in this.