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

sheramber

[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. 

He needs to tell them when he gets the money into his bank account.

he can then ask  if he is able to use the money to buy the flat  or will it be considered deprivation of capital.

If it is treated as deprivation of capital he will be considered to still have that money and will not be able to claim any benefit.

poppy12345

sheramber said:

[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. 

He needs to tell them when he gets the money into his bank account.

he can then ask  if he is able to use the money to buy the flat  or will it be considered deprivation of capital.

If it is treated as deprivation of capital he will be considered to still have that money and will not be able to claim any benefit.

I can't see buying your home would be classed as deprivation of capital.

TELLIT01

Buying a property to live in will not be classed as deprivation of capital.  It is however highly unlikely that the entire purchase can be completed within a single UC period.  Therefore he will have over £16k and his UC will cease.  He will have to claim again once the purchase is complete. To the best of my knowledge capital related to property is only disregarded when it is from the sale of the main residence and intended for use to  purchase a new property.  In that situation it can be disregarded for up to 6 months, possibly longer.  That is not the situation this person is in as the money has not come from the sale of his own property.

It would be totally wrong to raise false hope that DWP would help with anything.  They are tied by rules and have no leeway to be 'nice' in  most situations.

calcotti

TELLIT01 said:To the best of my knowledge capital related to property is only disregarded when it is from the sale of the main residence and intended for use to  purchase a new property.  In that situation it can be disregarded for up to 6 months, possibly longer.  That is not the situation this person is in as the money has not come from the sale of his own property.

Agreed.   

wilfred30

Personally, I don't see any advantage at all to him in buying the flat in the first place.

He appears to have a secure tenancy and is not responsible for any repairs etc.

He could spend his inheritance on improving his life and re-claim benefits once it's reduced to a certain level.

The people 'advising' him to buy it don't happen to be his children do they? 

tboo

[Deleted User] said:

A 54 year old man who visits the local mental health drop-in I attend is due to inherit £32,500. He is on Universal Credit, Housing Benefit, Council Tax Benefit and PIP, and has lived in his council flat for the last 10 or so years. He has been advised, and encouraged, to look into buying his flat from the council through the Right to Buy scheme. Eligible for a 70% discount he could possibly buy it outright and may also be able to afford the fees involved, just about (He's guessing the flat would be sold to him for around £100,000). Would it be ok for him to do this and continue to claim his benefits (with the exception of Housing Benefit given he won't need to pay rent any more)?

You have received plenty of excellent advice from the forum and have taken a lot of it on board to advise your friend.

However, I take it that you are only someone that attends the drop-in and that if you are not there as a member of staff, then I would suggest signposting this gentleman to the CAB at the earlier opportunity.

[Deleted User]

tboo said:

[Deleted User] said:

A 54 year old man who visits the local mental health drop-in I attend is due to inherit £32,500. He is on Universal Credit, Housing Benefit, Council Tax Benefit and PIP, and has lived in his council flat for the last 10 or so years. He has been advised, and encouraged, to look into buying his flat from the council through the Right to Buy scheme. Eligible for a 70% discount he could possibly buy it outright and may also be able to afford the fees involved, just about (He's guessing the flat would be sold to him for around £100,000). Would it be ok for him to do this and continue to claim his benefits (with the exception of Housing Benefit given he won't need to pay rent any more)?

You have received plenty of excellent advice from the forum and have taken a lot of it on board to advise your friend.

However, I take it that you are only someone that attends the drop-in and that if you are not there as a member of staff, then I would suggest signposting this gentleman to the CAB at the earlier opportunity.

Thank you. Will do.