Savings

Robert_Osler

If someone is getting divorced and will come out of the marriage with £70k, can they give the money away ( eg to their children ) and then apply for benefits. The application forms seem only to enquire about the twelve months prior to the application so presumably he can give his money away now retaining enough for the year ahead and after that year apply without disclosing the fact that he made the gift which will not show up on any of his bank statements etc within those twelve months prior. Is that right ?

seven-day-weekend

If the intent is to deprive themselves of capital in order to claim benefits, they will not get the benefits. This decision will be made by a Government decision maker; as far as I know each case is judged on its own merits.

Are you sure you wouldn't rather have the £70k than a life on benefits? I know I would!

Not a good idea really, or very ethical imho.

Robert_Osler

Thanks for your prompt reply. Is there a time limit from giving away money after which the authorities will ignore the gift ? For how long are you disqualified from getting benefits if you give away £70k ?

Debt_Free_Chick

Robert_Osler wrote: »

Thanks for your prompt reply. Is there a time limit from giving away money after which the authorities will ignore the gift ? For how long are you disqualified from getting benefits if you give away £70k ?

In theory, there isn't one, if the LA can connect the gift with the intention to deliberately deprive oneself in order to claim benefits. Maybe six years, as with statutory debt ..... maybe more ... or less.

Certainly, LA's go back at least 12 months, but that doesn't leave you automatically in the clear if the gift was made 14 or 18 or more months ago.

It's your intention to make the gift in order to be eligible to claim benefit which is the issue.

bunny999

Robert_Osler wrote: »

Thanks for your prompt reply. Is there a time limit from giving away money after which the authorities will ignore the gift ? For how long are you disqualified from getting benefits if you give away £70k ?

There isn't a time limit - it is intent that counts. (If you are suspected of fraud they can look as far back as they want into your financial history.) It is called deprivation of assets aka fraud and you can go to prison for it. At best you would be treated as still having the money. Hang on to the money that way you will be financially independent and not risking getting a criminal record. Also remember benefit rules change all the time, so don't risk giving the money away and then finding out you are not entitled to benefit.

[Deleted User]

Robert_Osler wrote: »

If someone is getting divorced and will come out of the marriage with £70k, can they give the money away ( eg to their children ) and then apply for benefits. The application forms seem only to enquire about the twelve months prior to the application so presumably he can give his money away now retaining enough for the year ahead and after that year apply without disclosing the fact that he made the gift which will not show up on any of his bank statements etc within those twelve months prior. Is that right ?

in a word NO

Robert_Osler

Thank you to all those who replied to my questions. Each reply has been helpful.

klem

I am about to be made redundant. My daughter has major education debts with horrendous interest rates (don't ask!) which I would like to help her with. If I give or lend her some of my redundancy money will that be regarded as capital deprivation when I apply for pension credit?

klem

dmg24

klem wrote: »

I am about to be made redundant. My daughter has major education debts with horrendous interest rates (don't ask!) which I would like to help her with. If I give or lend her some of my redundancy money will that be regarded as capital deprivation when I apply for pension credit?

klem

Paying off someone elses debt would usually be classed as deprivation. The only exception would be if you could show that it was done to avoid e.g. repossession of her house, or something equally extreme.

NASA_2

klem wrote: »

I am about to be made redundant. My daughter has major education debts with horrendous interest rates (don't ask!) which I would like to help her with. If I give or lend her some of my redundancy money will that be regarded as capital deprivation when I apply for pension credit?

klem

Yes, it would.