Pension Credit Criteria

Murphybear

Emmia said:

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.

You can get security of tenure by renting.  

I moved into sheltered housing a few years ago.  It is run by a charitable housing association for the over 60s.  Everyone has a self contained flat and there is a big communal lounge and garden.  There are properties all over England.  The first year you get an AST then it changes to an Assured Tenancy so you will be secure for life if you wish.  We sadly lost 2 people last year.  They were 96 and 98 and had both been there for 20 years  The HA is very good at things like repairs and there is a Court Manager on site who sorts out any local problems.  They encourage people to get Housing Benefit and about 70% of tenants do.  

Regarding the benefits, they can be quite complicated, my experience is as follows.  I have a full state pension and 2 small works pensions.  I wasn’t eligible for Pension Credit as my income was too high.  I got about half the rent and half the Council Tax paid.  As I have a few health issues I was advised by Citizens Advice to apply for Attendance Allowance which was successful.  I was then advised to apply for Pension Credit as apparently having AA changes the parameters.  I got a small amount of PC and now get all the rent and  Council Tax paid.  

Grumpy_chap

Emmia said:

But that will incur higher level stamp duty for the daughter if she buys another property 

grayjaybee said:

Her daughter, living overseas and about to acquire a significant amount of money post a joint house ownership sale following a relationship break-up, has offered to buy her Mother a small house/flat/park home in order to relieve her of the need to rent.

As I understand it, the Daughter will be liable for the SDLT surcharge if she already owns a property anywhere in the world and then buys another property (in her own name).

It is not stated, but I assume the Daughter will take care of her own needs and property security first (from the proceeds of the house sale) before buying for the Mother.  That's not 100% the case, though.  The house sale is only going to yield half (?) the value of a house where the Daughter lives and, presumably, the Daughter will need a bulk of that to acquire their own primary home.  Not obvious how this would leave a sufficient amount left over to buy the Mother a home as well.

If the Daughter pays for the property which then is registered (and actually) the Mother's, the SDLT surcharge is avoided.