Is it ok to buy the flat you live in with an inheritance and continue claiming benefits

calcotti

[Deleted User] said: Thanks, elsien. Your link linked to Turn2us which said, "A property that you own and do not live in usually counts as capital for benefits." He will be living in the property; will that make it ok?

Yes. A property that the claimant lives in is ignored.
If you had continued to follow through the link you would have read
https://www.turn2us.org.uk/jargon-buster/Disregarded-Property

A property that you own and do not live in usually counts as capital for benefits. 

TELLIT01

broganjohn, you have been told multiple times that not informing DWP, and other agencies, as soon as the payment is received is benefit fraud. It really is that simple.  Hoping to get away with it is a very bad idea, and not one which will be advocated here.

Alice_Holt

[Deleted User] said:

Alice_Holt said:

LateNightHunter said:

calcotti said:

LateNightHunter said:

AFIAK, as soon as the inheritance hits, he'll lose his benefits until his holdings/savings drop below £10k I think?

That’s not correct. £16,000 not £10,000 and PIP is not affected and there is a narrow possibility of UC not being affected - all as already described in this thread.

Entirely fair! I just remember my UC being stopped because I got £15k in a claim last year, is all

        The savings limit is £16k not £15k as calcotti has said.

   If your total capital / savings are now under £16k, have you reapplied for UC (if entitled) ?  
I would recommend that you make yourself aware of the details of UC (such as capital limits), if you are claiming / or can claim it.

Hi, Alice. What might happen if the man hoping to buy the flat tells the DWP after he buys the flat rather than before, even though the money may be in his account for a month or two, depending on how long it take to buy?

       Then he / you (?) may be deemed to have committed benefit fraud.

        UC will recover the overpayments made and an additional civil penalty will be levied.   He / you (?) is likely to be subject to an interview under caution, and may decide to seek advice from a solicitor if a criminal charge is in prospect:
https://www.advicenow.org.uk/sites/default/files/how_to_interview_under_caution-2017(website).pdf

[Deleted User]

elsien said:

If it's a flat he also needs to consider any costs for the ongoing maintenance of the building and the service charges - depending on the size and state of the block there can be some hefty bills floating around. If there's cladding issues then buying would probably be a very expensive idea. Just some other things he needs to think about. 

With regards to your specific query I don't think there is a disregard for an inheritance. There is if you sell a property and are buying another one elsewhere but not for inheritance. So he will need to declare it straight away when he gets the money.
(scope link)

Thanks, elsien. Your link linked to Turn2us which said, "A property that you own and do not live in usually counts as capital for benefits." He will be living in the property; will that make it ok?

calcotti

[Deleted User] said: Thanks, elsien. Your link linked to Turn2us which said, "A property that you own and do not live in usually counts as capital for benefits." He will be living in the property; will that make it ok?

Why you have you posted this question again. I have already replied to your earlier post of this question an hour ago.

calcotti said:

[Deleted User] said: Thanks, elsien. Your link linked to Turn2us which said, "A property that you own and do not live in usually counts as capital for benefits." He will be living in the property; will that make it ok?

Yes. A property that the claimant lives in is ignored.
If you had continued to follow through the link you would have read
https://www.turn2us.org.uk/jargon-buster/Disregarded-Property

A property that you own and do not live in usually counts as capital for benefits. 

[Deleted User]

Alice_Holt said:

[Deleted User] said:

Alice_Holt said:

LateNightHunter said:

calcotti said:

LateNightHunter said:

AFIAK, as soon as the inheritance hits, he'll lose his benefits until his holdings/savings drop below £10k I think?

That’s not correct. £16,000 not £10,000 and PIP is not affected and there is a narrow possibility of UC not being affected - all as already described in this thread.

Entirely fair! I just remember my UC being stopped because I got £15k in a claim last year, is all

        The savings limit is £16k not £15k as calcotti has said.

   If your total capital / savings are now under £16k, have you reapplied for UC (if entitled) ?  
I would recommend that you make yourself aware of the details of UC (such as capital limits), if you are claiming / or can claim it.

Hi, Alice. What might happen if the man hoping to buy the flat tells the DWP after he buys the flat rather than before, even though the money may be in his account for a month or two, depending on how long it take to buy?

       Then he / you (?) may be deemed to have committed benefit fraud.

        UC will recover the overpayments made and an additional civil penalty will be levied.   He / you (?) is likely to be subject to an interview under caution, and may decide to seek advice from a solicitor if a criminal charge is in prospect

"Then he / you (?) ..."  It's a man who uses a local drop-in I attend and sometimes help out at. And thanks. Given what you've said I'll advise him to to talk to the DWP before he does anything. I'll also ask the people at the drop-in to speak to him and walk him through any procedures; they often help with queries/claims/appeals etc.

[Deleted User]

calcotti said:

[Deleted User] said: Thanks, elsien. Your link linked to Turn2us which said, "A property that you own and do not live in usually counts as capital for benefits." He will be living in the property; will that make it ok?

Why you have you posted this question again. I have already replied to your earlier post of this question an hour ago.

calcotti said:

[Deleted User] said: Thanks, elsien. Your link linked to Turn2us which said, "A property that you own and do not live in usually counts as capital for benefits." He will be living in the property; will that make it ok?

Yes. A property that the claimant lives in is ignored.
If you had continued to follow through the link you would have read

A property that you own and do not live in usually counts as capital for benefits. 

Sorry about that. Also, I had to delete the link you provided in order to reply as it said at the top of my post, "You have to be around for a little while longer before you can post links."

[Deleted User]

TELLIT01 said:

broganjohn, you have been told multiple times that not informing DWP, and other agencies, as soon as the payment is received is benefit fraud. It really is that simple.  Hoping to get away with it is a very bad idea, and not one which will be advocated here.

Thanks. As I said above now that I know this I will advise that he tells the DWP before he buys the flat, and that he asks for help with all of it at the DWP. Apologies for causing any frustration. 

Norman_Castle

[Deleted User] said:

Norman_Castle said:

(a link to entitled.co.uk)

Thanks, Norman. What would happen if he didn't tell the DWP about the money until after he bought the flat? He's going to be informing them after he's bought it that he won't require Housing Benefit any longer and plans on telling them why.

If they continue paying benefits he wouldn't be entitled to had he told them about the money they can and most likely will recover the overpayment from him by whatever means are necessary including forcing a sale of the property.

Check the rules on deprivation of capital, hopefully buying a home is allowable.

If after buying he has little or no savings there may be help with the service charges. https://www.turn2us.org.uk/Benefit-guides/Universal-Credit-housing-costs/How-much-will-I-get-I-m-a-homeowner

poppy12345

[Deleted User] said:

TELLIT01 said:

broganjohn, you have been told multiple times that not informing DWP, and other agencies, as soon as the payment is received is benefit fraud. It really is that simple.  Hoping to get away with it is a very bad idea, and not one which will be advocated here.

Thanks. As I said above now that I know this I will advise that he tells the DWP before he buys the flat, and that he asks for help with all of it at the DWP. Apologies for causing any frustration. 

You're still not undewrstanding what's been advised several times through out the thread. Once the money goes into his bank then he needs to report the changes. Not sure what help you're expecting from DWP though.