Benefits and house sale

CEON44

Need some urgent advice please. Wife owns one sixth of a property, shared with 5 siblings. House being sold. Small cheap house being sold fir £75k. She is on benefits. Is there any way she can limit damage to her benefits? Can her share be passed straight to children? Any other options?  Thanks in advance

poppy12345

More information is needed before anyone can help. Which benefits exactly are you both claiming?

calcotti

How much capital is she likely to receive? If she has more than £16,000 of benefits then income based benefit entitlement would stop. If capital is between £6,000 and £16,000 then income based benefits would reduce. Capital below £6,000 is ignored.

CEON44

Universal credit and pip. I only have small work pension and carers allowance

poppy12345

CEON44 said:

Universal credit and pip. I only have small work pension and carers allowance

You would be claiming UC as a couple because it's a means tested benefit. The savings rule that calcotti has advised applies to UC. Carers allowance and PIP is not affected by savings.

Giving away her money will be seen as deprivation of capital and she'll still be classed as having that money. If you have any debts to pay then you can pay these while claiming UC and it won't be seen as deprivation of capital.

Once the money goes into her bank she needs to report the changes. If you're claiming council tax reduction then all local Authorities have their own rules and some have a maximum savings/capital limit of £6,000. Changes need to be reported to those too.

Grumpy_chap

It sounds like the OP will receive £12.5k from the house sale.
This is above the lower threshold and will potentially affect some benefits.

If the money is received and then gifted to the children, that may be considered as deprivation of assets 

Where is the property originating from?  Is it an inheritance?  If so, a deed of variation may be possible to transfer the share so it bypass the OP direct to the children.  Someone else may be able to advise whether that would still count as deprivation of assets.

calcotti

Grumpy_chap said: If so, a deed of variation may be possible to transfer the share so it bypass the OP direct to the children.  Someone else may be able to advise whether that would still count as deprivation of assets.

A deed of variation will likely be treated as deprivation of capital because the original inheritance is being given away.

CEON44

Money came from a house sale inheritance. The house is in 6 childrens names. The house was rented and rental fees went into a joint account in 6 names. The house sale money is to go into this account. Does this have any effect?

poppy12345

CEON44 said:

Money came from a house sale inheritance. The house is in 6 childrens names. The house was rented and rental fees went into a joint account in 6 names. The house sale money is to go into this account. Does this have any effect?

Yes, her share will affect your UC as advised above.

noitsnotme

CEON44 said:

Money came from a house sale inheritance. The house is in 6 childrens names. The house was rented and rental fees went into a joint account in 6 names. The house sale money is to go into this account. Does this have any effect?

Has the house always been in the 6 childrens names?  If so, I take it she was declaring her share of the rental income?  How much did that affect her benefits by whilst it was being received?

Or has it only just been transferred in to the childrens names?

CEON44

Was declaring it. Been in childrens names about 20 years. Is it possible to take out just £6000 to keep under the limit and leave the rest in the joint account?