Benefits After House Sale

Grumpy_chap

booboo85 said:

- For example, can I spend the £45k to get it down to £6k, such as paying off debt (I have about £9k), buy a new car, go on holidays etc?

- Can I give simply give this money to a family member (who is struggling financially aswell) or put this in a trust or something for my children?

- Could I buy a caravan or lodge on a holiday park and live in there and then still claim Universal Credit?

- If i do have to use this money purely for rent and bills, once it is down to £6k, can I start to reclaim universal credit?

 - Yes, within reason.  Repayment of debt is never DoC (deprivation of capital).  Other expenses will depend in part on what is reasonable.  If you want / need a car, and have £35k after repaying debts, what sort of car is reasonable for an individual on £14k per year?  A DM might argues that spending the full £35k on a car is not reasonable.  Similar for a holiday, any household items required etc.  This can be difficult as the rules are not hard and fast, what is reasonable can vary between one case and another, and a DM will not advise on what you might do but only give a decision on what you actually do.

 - No.  That would be DoC.

 - Yes, possibly.  You need to be sure it is a site for residential (not holiday) use - some sites close for a period each year.  Will the caravan be large enough for you and the children?  Are there sites within a suitable location for your work and the children's school?  Beware to understand the costs of running a static caravan, pitch fees, energy costs.  I am not sure on the full details of the rules, but there can be a disregard for capital from one house sale if being held for acquiring somewhere to live - I am sure others may be able to advise.

 - Yes.


In a wider context, are you receiving any advise about the separation finances and other practical matters?  The children's father should contribute to child maintenance and I do not believe that bankruptcy absolves him of that responsibility.

Have you reviewed benefits since your partner left?
Are you getting child benefit, single person council tax, etc.?

swingaloo

No- you cannot buy a caravan or lodge on a holiday park and live there. You cannot live on a holiday park at all, it must be a park with a residential licence. Even buying on a residential park is a huge risk.

booboo85

Grumpy_chap said:

booboo85 said:

- For example, can I spend the £45k to get it down to £6k, such as paying off debt (I have about £9k), buy a new car, go on holidays etc?

- Can I give simply give this money to a family member (who is struggling financially aswell) or put this in a trust or something for my children?

- Could I buy a caravan or lodge on a holiday park and live in there and then still claim Universal Credit?

- If i do have to use this money purely for rent and bills, once it is down to £6k, can I start to reclaim universal credit?

 - Yes, within reason.  Repayment of debt is never DoC (deprivation of capital).  Other expenses will depend in part on what is reasonable.  If you want / need a car, and have £35k after repaying debts, what sort of car is reasonable for an individual on £14k per year?  A DM might argues that spending the full £35k on a car is not reasonable.  Similar for a holiday, any household items required etc.  This can be difficult as the rules are not hard and fast, what is reasonable can vary between one case and another, and a DM will not advise on what you might do but only give a decision on what you actually do.

 - No.  That would be DoC.

 - Yes, possibly.  You need to be sure it is a site for residential (not holiday) use - some sites close for a period each year.  Will the caravan be large enough for you and the children?  Are there sites within a suitable location for your work and the children's school?  Beware to understand the costs of running a static caravan, pitch fees, energy costs.  I am not sure on the full details of the rules, but there can be a disregard for capital from one house sale if being held for acquiring somewhere to live - I am sure others may be able to advise.

 - Yes.


In a wider context, are you receiving any advise about the separation finances and other practical matters?  The children's father should contribute to child maintenance and I do not believe that bankruptcy absolves him of that responsibility.

Have you reviewed benefits since your partner left?
Are you getting child benefit, single person council tax, etc.?

Thank you for the information....

I understand the spenditure of the equity money would be difficult, this is why I thought I could pay my debt and also use the money to pay rent for a 15month ish period, in which i would not claim UC in this period, but claim it again when i hit the £16k threshold.

Like would they benefits company also say anything if i took my boys on like a £1500 holiday?

In relation to the benefits, i applied when my ex left the property and said he wasn't paying anything.

And yes, i have council tax discount etc.

Spoonie_Turtle

booboo85 said:

Grumpy_chap said:

booboo85 said:

- For example, can I spend the £45k to get it down to £6k, such as paying off debt (I have about £9k), buy a new car, go on holidays etc?

- Can I give simply give this money to a family member (who is struggling financially aswell) or put this in a trust or something for my children?

- Could I buy a caravan or lodge on a holiday park and live in there and then still claim Universal Credit?

- If i do have to use this money purely for rent and bills, once it is down to £6k, can I start to reclaim universal credit?

 - Yes, within reason.  Repayment of debt is never DoC (deprivation of capital).  Other expenses will depend in part on what is reasonable.  If you want / need a car, and have £35k after repaying debts, what sort of car is reasonable for an individual on £14k per year?  A DM might argues that spending the full £35k on a car is not reasonable.  Similar for a holiday, any household items required etc.  This can be difficult as the rules are not hard and fast, what is reasonable can vary between one case and another, and a DM will not advise on what you might do but only give a decision on what you actually do.

 - No.  That would be DoC.

 - Yes, possibly.  You need to be sure it is a site for residential (not holiday) use - some sites close for a period each year.  Will the caravan be large enough for you and the children?  Are there sites within a suitable location for your work and the children's school?  Beware to understand the costs of running a static caravan, pitch fees, energy costs.  I am not sure on the full details of the rules, but there can be a disregard for capital from one house sale if being held for acquiring somewhere to live - I am sure others may be able to advise.

 - Yes.


In a wider context, are you receiving any advise about the separation finances and other practical matters?  The children's father should contribute to child maintenance and I do not believe that bankruptcy absolves him of that responsibility.

Have you reviewed benefits since your partner left?
Are you getting child benefit, single person council tax, etc.?L

Like would they benefits company also say anything if i took my boys on like a £1500 holiday?

They might or might not, but as long as it is a reasonable cost for the time of year and required type of accommodation (as evidenced by prices from you looking around before deciding on the holiday) it shouldn't be a problem.

Grumpy_chap

booboo85 said:

I understand the spenditure of the equity money would be difficult, this is why I thought I could pay my debt and also use the money to pay rent for a 15month ish period, in which i would not claim UC in this period, but claim it again when i hit the £16k threshold.

Yes, paying debt is fine and will not affect your benefits.

You can pay the rent for how ever long until you become eligible for benefits again.
I believe - but please do check - that you can sometimes pay rent in advance and also still be eligible for benefits (i.e. not DoC).  (You will see I am not fully informed on this and any rules that apply.)

booboo85 said:

Like would they benefits company also say anything if i took my boys on like a £1500 holiday?

This comes down to the mind of a Decision Maker, should the expenditure be queried.

The DM will determine based upon reasonable (or not).

If you and your two boys dashed off on a holiday at £15k per head, I would think that is not reasonable.

I would think that you and your two boys enjoying a £1.5k holiday would be reasonable and actually beneficial.  Quality family time and experiences are good for development and good for mental health.  Rest and Relaxation is an essential part of our basic needs to maintain our well-being and support better physical fitness also plus capacity to learn.

The difficulty you have is it is not down to me so what I think is entirely unimportant.  It only matters what a DM thinks.