Another question about Deprivation of Assets

Newly_retired

Would the DWP consider it DoA if someone in receipt of means-tested benefits used money from an inheritance to buy an additional share of the property they live in? At present they own a tiny fraction, but when a relative’s estate is distributed, they may have the opportunity to buy another beneficiary’s share in the property. 

kaMelo

 I would say no. Purchasing your home is not depriving yourself of an asset as you still have the asset, albeit in the form of a property rather than cash. As the home you live in is disregarded for means tested benefits it should not affect them.
Although it's important to note, as an inheritance, there is no disregard for the cash for the period of time beginning when they've received the inheritance up until the transaction to purchase the increased share in their home actually happens.

Keep_pedalling

kaMelo said:

 I would say no. Purchasing your home is not depriving yourself of an asset as you still have the asset, albeit in the form of a property rather than cash. As the home you live in is disregarded for means tested benefits it should not affect them.
Although it's important to note, as an inheritance, there is no disregard for the cash for the period of time beginning when they've received the inheritance up until the transaction to purchase the increased share in their home actually happens.

I think it might not be so straight forward in this case, especially if they are buying a share of the property from a connected person. It’s an unusual situation so expert advice should be sort.

kaMelo

Keep_pedalling said:

kaMelo said:

 I would say no. Purchasing your home is not depriving yourself of an asset as you still have the asset, albeit in the form of a property rather than cash. As the home you live in is disregarded for means tested benefits it should not affect them.
Although it's important to note, as an inheritance, there is no disregard for the cash for the period of time beginning when they've received the inheritance up until the transaction to purchase the increased share in their home actually happens.

I think it might not be so straight forward in this case, especially if they are buying a share of the property from a connected person. It’s an unusual situation so expert advice should be sort.

Lol, it never is. (ETA. I've just read the other thread and see what you mean, very complicated)

I should have caveated my response by saying whilst that is my opinion, it will ultimately be down to a decision maker to make the call based upon all the information available to them which will no doubt be more than I have upon which I gave my opinon.

Newly_retired

Thank you, yes, it is very complicated, and would indeed be down to a DM. I suppose one can put the question in advance to a DM? 

As for expert advice, my solicitor is not much help, and he is not experienced in welfare benefits. I will ask the staff at my CitA where I volunteer, but I don’t think there is a definitive answer.

Spoonie_Turtle

Newly_retired said:

Thank you, yes, it is very complicated, and would indeed be down to a DM. I suppose one can put the question in advance to a DM? 

Unfortunately the response is usually no, they can only make a decision on something when it happens, not on hypothetical or future scenarios that haven't happened yet.

NedS

Spoonie_Turtle said:

Newly_retired said:

Thank you, yes, it is very complicated, and would indeed be down to a DM. I suppose one can put the question in advance to a DM? 

Unfortunately the response is usually no, they can only make a decision on something when it happens, not on hypothetical or future scenarios that haven't happened yet.

Correct, you cannot ask in advance - DM's only deal with actual case referrals. Even staff cannot put hypothetical cases to DM's or Policy as these will always come back with make a referral and we will look at it.
What you can do is look at the Advice for Decision Makers (ADM) guidance that is publicly available to gain an understanding f the factors they will consider in making their decision and how they should treat them.

Newly_retired

Thanks for the replies.I had a feeling that would be the case. I have looked at the guidance and it doesn't seem to cover the scenario, though paying off a mortgage is Ok, it would seem.
The transaction could be instantaneous, ie at the point when the estate is distributed, but as it would be a choice, not enforced, it could still fall foul of the DoA rule. However, without the purchase happening, the person would be likely to lose their benefit entitlement anyway at that point, and I can't see a way of avoiding that legally.