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depravation of capital
gasvalve
Posts: 5 Forumite
If I paid off my divorced daughters mortgage, approximately £55,000, would it affect her Universal Credit and would she have to inform DWP of the fact that her mortgage has been paid off.
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Comments
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There would be no DoC for her as it would be paying off a debt which is allowed with UC.
Did you pay it direct, or did the money enter her account?
Let's Be Careful Out There0 -
It wouldn't affect her however it could affect you if you were then to require care at the expense of the taxpayer.
Know what you don't2 -
Also falls into the seven-year rule; if you pass away within that time, it could be counted in your estate or inheritance.1
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Why would that be an issue? It would still be counted as part of the OPs estate if it was not gifted. Gifting NEVER has a negative impact on IHT.TimeLord1 said:Also falls into the seven-year rule; if you pass away within that time, it could be counted in your estate or inheritance.If the OP can afford to make the gift then there is no reason not to do so.0 -
As of now I haven't yet paid it off, if and when I do pay it off I will do so directly through her mortgage provider.0
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My understanding is you're likely going to be allowed to do that by the lender but they will want to do some checks for anti money laundering etc. Probably is preferable than going through her account regarding the UC though as she'd have to deal with the admin of that or later questions.gasvalve said:As of now I haven't yet paid it off, if and when I do pay it off I will do so directly through her mortgage provider."Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack1 -
If that's how it happens then there is nothing to report as makes no difference to her claim.gasvalve said:As of now I haven't yet paid it off, if and when I do pay it off I will do so directly through her mortgage provider.
I certainly wouldn't report it as sadly there are numpties who work for the DWP and could cause needless grief.
Let's Be Careful Out There1 -
It’s deprivation of capital.
Depravation is something completely different. 😮1 -
When your daughters just come out of a 5 year divorce, depravation seems to fit. LOL1
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Thanks for the advice everyone.0
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