Benefits and house sale

noitsnotme

There may be a capital gain and CGT to pay if it has increased in value over those 20 years, although I would imagine the personal allowance would negate most if not all of that.

Where in the country do houses go for £75000?  You can barely buy a beach hut in some places in the South for that!

Icequeen1

poppy12345 said:

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.

@poppy12345 I assume they are not claiming as a couple as in a recent post the OP said he had 100k cash in the bank as he was considering buying a property.

Grumpy_chap

calcotti said:

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.

Thank you - I thought that might be the case.

Though we now know that the comments about inheritance are irrelevant as this was a BTL owned by 6 children who were receiving income for the past 20 years.  

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?

The share of income and equity should, presumably have been declared all along and assessed against benefits claims.
The fact the property has been partly the OP's for 20 years means that DoV is entirely irrelevant.

Alice_Holt

CEON44 said:
 Is it possible to take out just £6000 to keep under the limit and leave the rest in the joint account?

         No.
         To do so might constitute benefit fraud.
         She'd be making a false declaration - her money left in the joint account is as much her capital as money in an account in her / your names.
        

elsien

People who have savings of any sort have to use them to live on if above the income related benefits threshold. It makes no difference where the money as come from, whether it’s from work, inheritance or something else. 

poppy12345

Icequeen1 said:

poppy12345 said:

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.

@poppy12345 I assume they are not claiming as a couple as in a recent post the OP said he had 100k cash in the bank as he was considering buying a property.

Thread here https://forums.moneysavingexpert.com/discussion/6365666/cash-or-property#latest @CEON44 if you and your wife are living together then your UC must be as a couple. If in June you had £100K in savings then i don't understand why you're still claiming UC. Not reporting this is benefit fraud.

whizzywoo

noitsnotme said:

Where in the country do houses go for £75000?  You can barely buy a beach hut in some places in the South for that!

There are certainly houses in the north of England that go for £75,000 and less!  It's part of the north south divide. 

RobinHill

"Where in the country do houses go for £75000?  You can barely buy a beach hut in some places in the South for that!"

noitsnotme: Lots of places, for example ... https://www.rightmove.co.uk/properties/125547473 

macman

You can move it to whatever account you want. But not declaring it is obviously fraudulent, whether you keep it in the Joe Bloggs Building Society, or in a biscuit tin under the bed.

macman

noitsnotme said:

There may be a capital gain and CGT to pay if it has increased in value over those 20 years, although I would imagine the personal allowance would negate most if not all of that.

Where in the country do houses go for £75000?  You can barely buy a beach hut in some places in the South for that!

To attract CGT on £75k divided by 6, after the annual allowance, the property would have to have cost less than about £200 20 years ago, unless the OP has other gains.  It's cheap up North, but not that cheap.
You need to get out more: there are tens of thousands of houses on sale for less than £75K, but they're just not south of Watford.