Living abroad tips and hints for money savers

ceebeeby

Hi,

I wonder if anyone can help with an urgent query. My Gran was planning to move to Spain in early March, however, is now considering changing her mind - here's the story ....

She owns her own property in the UK (which I paid for). To purchase the new house in Spain I need to sell her house (which as I say is in her name), and use the money to part pay towards the Spanish home (and I'll pay the rest). As she was determined this is what she definitely wanted to do (and actually asked to do), I've paid the deposit for the Spanish home. The home in Spain will be in my name - it was easier than trying to get my Nan a residency etc - she's nearly 75. I've got a buyer for her home and it's due to complete next week (she's staying with me / family until the home in Spain is ready).

Yesterday she contacted 'the social' regarding her benefits. She currently receives circa. £210 per week. She has no personal pension or savings. She is long-time divorced. The social advised her that if she moved into my home she would reduce from £210 to £48 per week. I think her £210 is made up of £48 disability and the remainder is 'pension' or possibly 'single person income support' - my Gran said it was pension however I don't think she ever paid her 'stamp'. I'm using her terminology!!!! On the basis that they were going to reduce her money so drastically she said there was no way she was moving!!!!

Just to clarify, she will be living on her own in Spain (albeit that my mother, her daughter lives 200 yards down the road and will be looking after her fairly substantially).

Does this sound right? I thought, that if you moved abroad to Spain you retained your benefits etc. Is there anything else that we could do that wouldn't be dishonest (i.e. could my Gran come back to the UK frequently).

I'm grateful for any advice

Ceebsx

Edit-Have just been on DWP website and I think my Gran gets Pension Credits - although I'm not sure what that is .... I've gone through the section on living abroad, but it was a bit gobbledygook and didn't really answer anything.

gatita

Hi Ceebbeeby,
What a predicament for you, but unfortunately I am sure any 'Means Tested' benefits will stop immediately your Gran leaves the UK. She will only be entitled to a pension based on her husbands contributions, even though she is divorced,and her own of course if she contributed.

What a situation for you to be in after having paid a deposit! Hopefully someone else will be able to think of something. Good Luck:o

donny-gal

I cannot see any handouts from Spain, and would expect your Nan to get only the bare minimum from the UK Government.

Dont expect your deposit back for the Spanish house, that does not happen.

DG

seven-day-weekend

She can continue to receive her State Pension, and certain other benefits, if she is on them, but will lose means-tested benifits.

As a pensioner her healthcare will be free (but will she be able to cope with Spanish-speaking Doctors and Nurses?). Spanish Healthcare is excellent - much better than the UK.

There is not much provision for full-time care in Spain (caring is done by families).

If she is living permanently in Spain (i.e sold her house etc) and doesn't have a British address, then she will lose entitlemant to British Healthcare.

This link may be useful.

http://66.102.9.104/search?q=cache:QVclxVMPqSAJ:www.ageconcern.org.uk/AgeConcern/Documents/IS1_0805.pdf+age+concern+retire+abroad&hl=en&ct=clnk&cd=2&gl=uk

seven-day-weekend

Also, I'm sorry to say this, but if you do not complete on the Spanish house sale, you will lose your deposit and may even have to pay compensation to the vendor.

Take legal advice asap.

hartcjhart

hi there take a look in here

http://ukgovabusesexpats.co.uk/

also this posted on another site

Jan 12, 2008 4:51 pm Post subject: DLA, AA AND CARER'S ALLOWANCE NOW 'EXPORTABLE'.......... If you were in receipt of any of the above allowances/benefits whilst you were in the good old UK and when you came here they stopped them, you can now apply to get these reinstated.

The European court of justice has over ruled the UK on these benefits. In the case of DLA however, you may only receive the care component part as apparently, the mobility part is still contentious and counted as quite possibly non-exportable.

The DWP website states that people can claim these benefits and mention a date from when claims will be considered, April 08 and that benefits will be paid shortly therefter. (This is because it takes a 'little longer' for the DSS idiots to read, digest and interpret the findings of the ECJ!!!)

From my understanding after reading the legislation, the UK cannot now rely on that very contentious cut off date of June 1992 and bleat that these benefits are all 'social benefits' for RESIDENTS of the UK only.

it could be worth going to citizens advice to see if they have any more info

EdInvestor

ceebeeby wrote: »

She owns her own property in the UK (which I paid for).

So no housing benefit payment then.

Yesterday she contacted 'the social' regarding her benefits. She currently receives circa. £210 per week. She has no personal pension or savings. She is long-time divorced. The social advised her that if she moved into my home she would reduce from £210 to £48 per week. I think her £210 is made up of £48 disability and the remainder is 'pension' or possibly 'single person income support'

If she gets disability/AA allowance and pension credit she may also get an extra "severe disability" top up payment to her pension credit.

http://www.ageconcern.org.uk/AgeConcern/Documents/FS34AADLAAPR07.pdf

So "the social" would be right to say that she would lose all but the DLA if sahe went to Spain.

However

As a divorced woman she would be entitled to 100% of her ex husband's state pension (so that would account for 87 pounds a week if he gets the full basic*, and she would keep this in Spain) as well as the DLA.

*Note to other state pension nerds : does anyone know if the 100% of state pension payable to divorcees includes the Serps/S2P amount? In the case of a widow, she would get 100% of the husband's basic plus either 50% or 100% of his Serps, depending on various factors.Don't believe I 've ever seen the rules on divorcees.Could be quite important in this case.

Check her state pension entitlement here:

www.thepensionservice.gov.uk[/B]

ceebeeby

Thanks so much everyone for your advice!

Her husband (my grandfather) is still alive - we think, but I'm not convinced that there would be huge amount of pension contrbutions available there - he didn't work for many years due to drinking. They've been divorced for 20 years ish.

I agree on the deposit part etc. This is all becoming a huge nightmare as there's so much money at stake (house sale(s), removal firms, solicitors etc.), but ultimately she needs to be happy and that's the important part, and I've said as much to her, and I don't want her to feel railroaded into moving if it's going to upset her.

Just to say the caring part woudl be done by my Mum who lives permanently just 200 yards down the road. We could afford to pay medical fees if needed, and are looking at health insurance (although it's about £1000 a year) so that's not a huge problem, the thing is she feels so much healthier and better in the Spanish climate and has a fab social life there. What we couldn't afford to do though is to make up circa. £1000 a month on-going for living expenses for her ....

sandy2_2

Could she live part time in Spain and part time in England, that would alleviate a lot of the financial issues i think

donny-gal

As said before if over 60 she does not need private medical insurance, and the Spanish National Health knocks ours into a cocked hat. If she comes to a predomently ex pat area, then she should not have the english-spanish language problem, and a occasional interpreter would be less than private health care. If your Mum is aleady out here she should know if the language would be a problem.

I think she would lose UK health care after two years, and has to be back 6 months before it returns.