Gifted Property Whilst On PIP and Support Group ESA

Spoonie_Turtle · 16 January 2024 at 7:09PM

muldesia said:

Spoonie_Turtle said:

muldesia said:

Spoonie_Turtle said:

muldesia said:

elsien said:

You also need to consider the ongoing service charges, maintenance, costs et cetera and whether he will be able to afford this from benefits.
He will then have the issue that if he can’t manage to live on his own, and the flat is in his name, it will count as an asset for benefits purposes if he has to then live somewhere somewhere else. That money could then have to be used for him to live on until it gets down to the benefits thresholds.
If there is a reasonable amount of doubt about his ability to manage, I do think he should seriously consider renting first if he is able to find a property that will accept him.

This would seem to be a case of hope for the best but plan for the other scenarios as well.

That's a very good point. There's not a lot of money to go around, so not sure how feasible it is to pay out rent for a while - his PIP and ESA benefits certainly wouldn't allow him to afford it

But I take on board what you say about how if he moves away from the place he's bought, perhaps back with my mum, that property will now be viewed as an asset my brother holds, and that could affect his benefits. Do you know if that situation would affect either PIP or ESA?

Many thanks for the help!

Depends on what type of ESA he claims.

Forget PIP, it's not affected by anything financial at all.

This is a 'Support Group' ESA. There's no expectation that he'll be able to work in the future.

Do you know if that type of ESA would be affected should he move back with my mum, and has that property in his name?

Many thanks!

That's not a type of ESA (although understandable that you wouldn't know that!).

The type is whether it's new-style, income-based, the old contributions-based, or a mix of income and contributions-based. When did he start his ESA claim, what year?

I asked him and he wasn't entirely sure. Since around 2010-2012 he thinks.

Well in that case it's definitely not the new style so some of it could be income-based, although if he worked before that the majority should be contributions-based. But others are more knowledgeable and are better placed to advise.

(If it had been new-style e.g. from late 2018 onwards then it definitely would not be affected by potentially having a flat in his name. But it's not that so if any of it is income-based, it would be affected.)

HillStreetBlues · 16 January 2024 at 7:18PM

muldesia said:

Alice_Holt said:

HillStreetBlues said:

Alice_Holt said:

HillStreetBlues said:

Alice_Holt said:

I can't see a problem even if the ESA is income related (or partly income related) because (as I read the OP) the flat will be bought for him without any monies moving into his account.

Can this be done? would money laundering checks prevent this?

OP wrote "My mum is considering selling her house and buying him a flat with [some of] the proceeds."

I can't see how this could be seen as money laundering - can you explain how it might?

I'm not sure of the rules, but can the mother go though the money laundering checks that need to happen, when it's not her that will own the property?

Yes.

It's the source of funds that is important - https://www.propertymark.co.uk/professional-standards/consumer-guides/buying-selling-houses/aml-proof-of-funds.html

More to the point - The OP and his mother should be aware that gifting some of her house proceeds is likely to impact on any potential help with future care costs.

Regarding it impacting on future care costs, I'm assuming you mean deprivation of assets when it comes to nursing home fees? I thought that was a case-by-case decision made by the council... I'm hoping the council won't see it like that given my brother's status. It should hopefully be obvious she's not selling her home just to avoid any nursing home fees.

The council would have to show that the mother must have known she would need a care home at the point of giving the money away. If she didn't know it can't be DoC.