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25% house owner - benefits

24 replies 1.3K views
I have a friend and their mum died and put a quarter of her house in their name. And a quarter in his brother's name. The other half is in the dad's name and he lives at the property.

My friend lives alone and is in a wheel chair and has other health issues. He gets PIP and universal credit. When this happened, the benefits office said that owning a quarter of the property will not affect his benefits because he can't access the capital...as his dad is still living in the property.

However, the dad is getting older and needs a bungalow or some form of assisted living. So he wants to sell the house and move. This would result in around £90k to my friend.

He is worried his benefits will stop and the money will be wasted if he keeps it. He's always struggled for money and wants to know what he could spend it on without being deprivation of capital. And if there's a way to keep his share in his dad's new house so the arrangement stays the same. He said he wants to get gold plated rims on his wheel chair...luckily he's joking :smiley:
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Replies

  • MojisolaMojisola Forumite
    34K posts
    Part of the Furniture 10,000 Posts Name Dropper
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    I have a friend and their mum died and put a quarter of her house in their name. And a quarter in his brother's name. The other half is in the dad's name and he lives at the property.
    However, the dad is getting older and needs a bungalow or some form of assisted living. So he wants to sell the house and move. This would result in around £90k to my friend.
    And if there's a way to keep his share in his dad's new house so the arrangement stays the same.
    It depends on how the will was written.  When a tenant in common leaves their share of the house to someone other than the spouse, there is usually direction about allowing the spouse to stay in the house as long as they want and also to be able to sell and buy another property using the full capital.
  • DJ13xDJ13x Forumite
    4 posts
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    MoneySaving Newbie
    His benefits would stop if he has £90k in the bank as he would no longet be struggling for money. If he does get that money...defeats the point of him claiming benefits....no?
  • HouseTargaryenHouseTargaryen Forumite
    68 posts
    10 Posts Second Anniversary
    _shel said:
    I have a friend and their mum died and put a quarter of her house in their name. And a quarter in his brother's name. The other half is in the dad's name and he lives at the property.

    My friend lives alone and is in a wheel chair and has other health issues. He gets PIP and universal credit. When this happened, the benefits office said that owning a quarter of the property will not affect his benefits because he can't access the capital...as his dad is still living in the property.

    However, the dad is getting older and needs a bungalow or some form of assisted living. So he wants to sell the house and move. This would result in around £90k to my friend.

    He is worried his benefits will stop and the money will be wasted if he keeps it. He's always struggled for money and wants to know what he could spend it on without being deprivation of capital. And if there's a way to keep his share in his dad's new house so the arrangement stays the same. He said he wants to get gold plated rims on his wheel chair...luckily he's joking :smiley:
     How is living off your own money wasting it? 
    Because his mum and dad spent their life working that money and to see it not benefit his dad or him in any material way is very sad. 
  • _shel_shel Forumite
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    _shel said:
    I have a friend and their mum died and put a quarter of her house in their name. And a quarter in his brother's name. The other half is in the dad's name and he lives at the property.

    My friend lives alone and is in a wheel chair and has other health issues. He gets PIP and universal credit. When this happened, the benefits office said that owning a quarter of the property will not affect his benefits because he can't access the capital...as his dad is still living in the property.

    However, the dad is getting older and needs a bungalow or some form of assisted living. So he wants to sell the house and move. This would result in around £90k to my friend.

    He is worried his benefits will stop and the money will be wasted if he keeps it. He's always struggled for money and wants to know what he could spend it on without being deprivation of capital. And if there's a way to keep his share in his dad's new house so the arrangement stays the same. He said he wants to get gold plated rims on his wheel chair...luckily he's joking :smiley:
     How is living off your own money wasting it? 
    Because his mum and dad spent their life working that money and to see it not benefit his dad or him in any material way is very sad. 
     Food, rent, sky tv a new couch or cooker etc is quite material. 
     What else does he want to spend it on? 
    Don't Buy The S*n
  • baza52baza52 Forumite
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    why not use the capitol to buy or buy a share in a flat or house for himself?
  • RubyroobsRubyroobs Forumite
    399 posts
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    kaMelo said:
    _shel said:
    I have a friend and their mum died and put a quarter of her house in their name. And a quarter in his brother's name. The other half is in the dad's name and he lives at the property.

    My friend lives alone and is in a wheel chair and has other health issues. He gets PIP and universal credit. When this happened, the benefits office said that owning a quarter of the property will not affect his benefits because he can't access the capital...as his dad is still living in the property.

    However, the dad is getting older and needs a bungalow or some form of assisted living. So he wants to sell the house and move. This would result in around £90k to my friend.

    He is worried his benefits will stop and the money will be wasted if he keeps it. He's always struggled for money and wants to know what he could spend it on without being deprivation of capital. And if there's a way to keep his share in his dad's new house so the arrangement stays the same. He said he wants to get gold plated rims on his wheel chair...luckily he's joking :smiley:
     How is living off your own money wasting it? 
    Because his mum and dad spent their life working that money and to see it not benefit his dad or him in any material way is very sad. 
    I'm sure most people would like to keep their earnings to spend on nice things whilst the state picks up the tab for mundane things like housing and utility bills. Unfortunately that's not how it works though, the expectation is that people support themselves and their families. Where this is not possible for whatever reasons then the state provides support until you can support yourself again at which point the state would stop providing support.

    I know this is not a discussion board but frankly it's becoming ridiculous. The number of posts recently about how someone can dispose of assets to keep their benefit entitlement it's clear why strong rules regarding deprivation of assets are needed. Some people are simply taking the !!!!!! and unfortunately for the majority of benefit claimants who don't do so, they get tarred with the same brush.
    Totally agree with your last paragraph.
  • sherambersheramber Forumite
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    He wouldn't have to struggle for money ant more.  How is that not a benefit to him?
    He can replace worn out items. He can treat himself to new carpets, new furniture, new appliances.
    He won't need to worry  if he can pay his utility bills
    There may be aids that could make his life easier that he could buy.
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