ESA & Moving House

sj15

Hi All, need some advice.

My mum is on ESA (income related) and due to a divorce she sold her house last month (where I also lived) and got a share of it. She is currently living with me in a rented house. We are however looking to purchase her a new property ASAP or she will eat in to her house funds.

I understand she has a 26 week disregard period for house sale funds, and we've written to the ESA to inform them of this as soon as the money hit her bank. Please let me know if so far my understanding is correct. We haven't heard back from them so may call them next week to see if they got the letter which we sent recorded delivery.

So, the problem is she is not going to have enough cash to buy a suitable property, so I want to top up her up with £20-25k so she gets the place she needs. The new property will fully remain in her name and I will effectively be gifting the money to her. I don't want any of it in my name as it will cost me a fortune when buying a property for myself later due to stamp duty. I would also move in to this new property with her for now.

Would the above scenario affect her ESA? Ultimately apart from her address, her circumstances won't change (0 income, medical conditions etc.) but I am worried if I help her with cash to buy the house it will count against her.

Sorry, a bit complicated. I went to CAB office twice but they were stupidly busy so I don't know where to turn. I tried ringing Jobcentre Plus but was waiting for 40mins before I gave up.

calcotti

You gifting money to her will not affect her claim if you pay the money direct to the solicitor handling the purchase. If you give it to your mother first it may be a problem.

You are correct that the money from the previous house sale can be disregarded for 6 months, or longer if considered reasonable.

See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/832026/dmgch52.pdf
Paragraphs 52535 to 52545.

sj15

calcotti wrote: »

You gifting money to her will not affect her claim if you pay the money direct to the solicitor handling the purchase. If you’ve ot to your mother first it may be a problem.

Thank you

Do you have any more info or insight on the above? Would the ESA guys frown on this (If i pay the solicitor on sale) and should we inform them?

Don't want to do anything to get us in trouble

calcotti

sj15 wrote: »

Thank you

Do you have any more info or insight on the above? Would the ESA guys frown on this (If i pay the solicitor on sale) and should we inform them?

Don't want to do anything to get us in trouble

I am not sure what you are looking for. If you give the money direct to the solicitor at the point it is needed to complete the purchase then the money never belongs to your mother therefore it cannot be taken into account.

sj15

calcotti wrote: »

I am not sure what you are looking for. If you give the money direct to the solicitor at the point it is needed to complete the purchase then the money never belongs to your mother therefore it cannot be taken into account.

Yeah I was just wondering that I am increasing her assets somewhat so that might be something that the ESA may want to know.

Thanks for your help.

calcotti

The house a claimant lives in is always ignored.