In process of buying sister out

NittyGritty

I'm not in a position to buy out her share as I'm currently buying the other sister out of her share, 

So it's a no win situation for my other sister even tho she owns a 33.5% share in house, she's inherited physically she as no money from it, as she doesn't want me to sell the house

Just seems strange she she would lose her entitlement to u because of a share in house where she as no money from

KxMx

The house share value counts in your sister's capital calculation for UC. 
Capital is not just money in the bank. 

NittyGritty

Ok thank you

NittyGritty

Not sure if it's true or not but I'm sure I've seen somewhere where u can leave sisters share in her child's name she's 16 is this possible to avoid her losing her universal credit or is that just not true, or am I out of options here

KxMx

That would be deliberate deprevation of assets, which is against the rules.

NittyGritty

Ahh ok so there is no way around this then apart from selling house in which case she would still lose her uc whichever way I do it 

NittyGritty

What about this option marked in bold can she set up a trust for her kids and give her share that way? Using deed of variation? 
"

What changes can I make?

You are only allowed to make changes to your own share of the inheritance – the exact terms can be tailored to be as simple or complex as you need them to be. You might want to:

• Redirect specific assets to different people
• Give away your whole entitlement
• Set up a trust.

The person you give your entitlement to doesn’t have to be named in the Will already.

 

Although you can only change your own entitlement, deeds of variation are often used to change the distribution of an estate to benefit everyone. This means all the beneficiaries might decide between themselves how each other’s shares should be altered.

KxMx

In the DWP's eyes, still deliberate deprevation of capital.

UC is means tested and your sister giving away means to retain entitlement to UC is not allowed. 

user1977

It doesn't matter how you dress it up, if she chooses not to take the inheritance then it's deprivation of assets. She takes the money, may lose entitlement to UC, may become again entitled to it later on after she's spent her money.

Voyager2002

NittyGritty said:

I'm not in a position to buy out her share as I'm currently buying the other sister out of her share, 

So it's a no win situation for my other sister even tho she owns a 33.5% share in house, she's inherited physically she as no money from it, as she doesn't want me to sell the house

Just seems strange she she would lose her entitlement to u because of a share in house where she as no money from

There are two ways out:

Firstly, she could move into the house. Once it is her home, its value is disregarded.

Secondly, she could make all reasonable efforts to sell the house so that she can receive the cash value of her share and so live on it. If she cannot do this because the co-owners are not agreeing, then in the short term DWP would disregard its value while the situation is resolved. In the longer term this could lead to a very difficult situation.