Pension Credit Criteria

elsien

Who would be responsible for the cost of ongoing maintenance for any property that was bought? That is something she may need to factor into her budget as well, plus service charges, leasehold costs et cetera if she’s in a flat or a mobile home.

Ordinary_Yet_Unique

Rubyroobs said:

She wouldn't lose Pension credit or council tax support. The only problem I can forsee is if the property is in mothers name then if she has to go into care the house would be sold to pay for that. So daughter potentially sees thousands of pounds  that she could have had for herself going to pay for care fees.

Although requiring care is not a given. The percentage requiring it is relatively small. However ,if required, the daughter sounds the kind of person who would do whatever was necessary for her mother to be looked after. Not everyone thinks of the inheritance. Thank goodness.

Rubyroobs

elsien said:

Who would be responsible for the cost of ongoing maintenance for any property that was bought? That is something she may need to factor into her budget as well, plus service charges, leasehold costs et cetera if she’s in a flat or a mobile home.

I guess with something like a park home, help with ground rent can be claimed as part of the pension credit claim.

Rubyroobs

Ordinary_Yet_Unique said:

Rubyroobs said:

She wouldn't lose Pension credit or council tax support. The only problem I can forsee is if the property is in mothers name then if she has to go into care the house would be sold to pay for that. So daughter potentially sees thousands of pounds  that she could have had for herself going to pay for care fees.

Although requiring care is not a given. The percentage requiring it is relatively small. However ,if required, the daughter sounds the kind of person who would do whatever was necessary for her mother to be looked after. Not everyone thinks of the inheritance. Thank goodness.

This is not the same as the daughter missing out on inheritance though is it? The daughter is using potentially a lot of her own money to purchase a property which could be taken for care home fees. It's not the same as the mother having had assets that the daughter doesn't inherit. Big difference. Ideally it would be best for the property to be kept in the daughters name and the mum just live their rent free.

grayjaybee

Ordinary_Yet_Unique said:

Rubyroobs said:

She wouldn't lose Pension credit or council tax support. The only problem I can forsee is if the property is in mothers name then if she has to go into care the house would be sold to pay for that. So daughter potentially sees thousands of pounds  that she could have had for herself going to pay for care fees.

Although requiring care is not a given. The percentage requiring it is relatively small. However ,if required, the daughter sounds the kind of person who would do whatever was necessary for her mother to be looked after. Not everyone thinks of the inheritance. Thank goodness.

Yes indeed, I know the daughter concerned and I believe she is the kind of person whose first concern is her Mother's security.  She'll do the right thing.....

Brie

Other than the rent is there anything the matter with the place she lives in? 

If she's lived there for a number of years then she knows the area, likely has friends nearby, neighbours she might be able to call on for help etc.  She also has a landlord that is responsible for ensuring the boiler is serviced and working, that the front door has a lock that works etc. 

If she owns her own place she's responsible for all the maintenance, has the upheaval of moving, finding her way around a new area, making new friends, where's the bus stop into town etc.  It's a lot to handle at the best of times and more difficult when one gets a bit older (don't ask me how I know!!)

Wouldn't it be more straight forward for daughter to send her some money every few months maybe the equivalent of the rent she has to pay?  If say the rent was £1200 a month and she had to pay out £400 a month from her own pocket daughter could send her £1500 every quarter to cover that and a bit more.  As long as her savings don't exceed £10k it would have no effect on her PC.

Pension Credit: Eligibility - GOV.UK

Robbie64

^

the daughter could send a regular amount to cover the part of the rent that needs paying from mum's Pension Credit without it being classed as income. Receiving a regular amount of money can be treated as income but when it is paid to meet an expense which Housing Benefit / Local Housing Allowance doesn't cover then it is ignored.

grayjaybee

Brie said:

Other than the rent is there anything the matter with the place she lives in? 

If she's lived there for a number of years then she knows the area, likely has friends nearby, neighbours she might be able to call on for help etc.  She also has a landlord that is responsible for ensuring the boiler is serviced and working, that the front door has a lock that works etc. 

If she owns her own place she's responsible for all the maintenance, has the upheaval of moving, finding her way around a new area, making new friends, where's the bus stop into town etc.  It's a lot to handle at the best of times and more difficult when one gets a bit older (don't ask me how I know!!)

Wouldn't it be more straight forward for daughter to send her some money every few months maybe the equivalent of the rent she has to pay?  If say the rent was £1200 a month and she had to pay out £400 a month from her own pocket daughter could send her £1500 every quarter to cover that and a bit more.  As long as her savings don't exceed £10k it would have no effect on her PC.

Pension Credit: Eligibility - GOV.UK

My understanding is she is not particularly happy where she lives and though landlord does fulfil his remit, worries she could be given notice at any time so is somewhat vulnerable in that regard.
I dont know why daughter made the offer she did and haven't asked but I will certainly pass on your suggestion for which I am most grateful.

grayjaybee

Robbie64 said:

^

the daughter could send a regular amount to cover the part of the rent that needs paying from mum's Pension Credit without it being classed as income. Receiving a regular amount of money can be treated as income but when it is paid to meet an expense which Housing Benefit / Local Housing Allowance doesn't cover then it is ignored.

Well that's quite a surprise.  I thought all income was counted when claiming pension credit, irrespective of it's destination. Thankyou, this bit of information could be key.

Emmia

Rubyroobs said:

Ordinary_Yet_Unique said:

Rubyroobs said:

She wouldn't lose Pension credit or council tax support. The only problem I can forsee is if the property is in mothers name then if she has to go into care the house would be sold to pay for that. So daughter potentially sees thousands of pounds  that she could have had for herself going to pay for care fees.

Although requiring care is not a given. The percentage requiring it is relatively small. However ,if required, the daughter sounds the kind of person who would do whatever was necessary for her mother to be looked after. Not everyone thinks of the inheritance. Thank goodness.

This is not the same as the daughter missing out on inheritance though is it? The daughter is using potentially a lot of her own money to purchase a property which could be taken for care home fees. It's not the same as the mother having had assets that the daughter doesn't inherit. Big difference. Ideally it would be best for the property to be kept in the daughters name and the mum just live their rent free.

But that will incur higher level stamp duty for the daughter if she buys another property - perhaps she wouldn't be concerned by that? I do think that a property purchase (whether owned by mum or daughter) would give mum security of tenure.