In process of buying sister out

NittyGritty

Long story short my sister and I are in late stage of registering on land registry with solicitors, my share of 66. 5% and other sister 33.5% tho solicitors haven't sent off the forms off yet to land registry yet until we come in and sign forms next week, however we have since learnt the inheritance of her owning 33.5% of house will affect her claiming universal credit, is there away around this maybe if I just put all the share in my name and then just do a will afterwards stating house goes to her on me passing so it doesn't mess her universal credit up? Or is there another way I can avoid this by doing something else that doesn't stop her benifits?
Also I know I will have to ask solicitors to redo some of the forms I originally done to take her off the shares so it's just me on there will they charge me extra for doing this? I got the final bill the other day from solicitors 

Voyager2002

What is going to happen to this house? If you are going to sell it and divide the money according to the will, then it will be disregarded while on the market so her UC will not be affected until she gets the cash.

Alternatively, if your sister lives in the house then again it will be disregarded.

silvercar

If she inherits, then she inherits. You can’t do a deed of variation to avoid effecting her benefits, DWP will assume that she has the inheritance when calculating her entitlement.

NittyGritty

I'm currently living in it and will continue to do so after sister is bought out, my other sister currently on 33.5% lives in a rented house so looks like my only option is to change the paper work so it just goes in my name on land registry (sister is happy with this) @and then do a will stating she gets house on my passing

Voyager2002

NittyGritty said:

I'm currently living in it and will continue to do so after sister is bought out, my other sister currently on 33.5% lives in a rented house so looks like my only option is to change the paper work so it just goes in my name on land registry (sister is happy with this) @and then do a will stating she gets house on my passing

As Silvercar has just explained, this is not going to work. DWP will assume that she has a third of the market value of the house when calculating her benefits. 

HillStreetBlues

Voyager2002 said:

As Silvercar has just explained, this is not going to work. DWP will assume that she has a third of the market value of the house when calculating her benefits. 

And if sister doesn't declare it and keeps claiming UC there is also a possibility both are charged with fraud.

NittyGritty

So even tho myself or my other sister isn't even registered on the land registry yet as my mother passed away last June, the house wasnt registered due to it being before 1991 so wasn't mandatory back then,

 I can't choose to put all of the house in my name solely?  I'm in process of buying one of my siblings out of her share and my other sister as said she's happy for her share to go to me? Meaning I get 100%of house but agree that I will do a will so I will give it all to her on my passing?

Caz3121

If there is a will that leaves your sister 33.5% of a property then if she chooses to give her share of the property to you then this would be seen as deprivation of assets. She will still be treated as if she has her share of the house so would not be entitled to UC. Are you in a position to buy her out? - her UC will still stop but she will at least be able to have funds to support herself until it drops below a level to reclaim (if necessary)

elsien

There is no way she can give her a share of the house away and keep her universal credit. Unless she’s living in the house herself.

And why should she keep claiming benefits when she now has money she could be living on? 

The most sensible way of doing it would be for you to buy her out, as already said. Aside from the deprivation of capital issue which is already been explained, even if it were possible there is no guarantee that there will be anything to leave her in a will anyway. Life happens – bankruptcy, divorce, care fees etc.  

Bigphil1474

Plus she'd have to trust that you don't change your will in a few years time. 

You're basically looking for a way to con taxpayers money. Not a good look. 

GrubbyGirl_2

elsien said: there is no guarantee that there will be anything to leave her in a will anyway. Life happens – bankruptcy, divorce, care fees etc.  

Also does your sister not realise that you could simply change your will at any time and there is absolutely nothing she can do about it without admitting that she defrauded the state?