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  • FIRST POST
    • D.toleman
    • By D.toleman 13th May 18, 1:14 PM
    • 1Posts
    • 0Thanks
    D.toleman
    Affect on pension/credit of an "unrealisable" asset
    • #1
    • 13th May 18, 1:14 PM
    Affect on pension/credit of an "unrealisable" asset 13th May 18 at 1:14 PM
    Is there such a thing as an "unrealisable asset" regards benefits after age 65?

    I'm only 54 and still working. but when I retire I'll just have the state pension. I'm expecting what I pay now for my little place should come from pension credit / housing benefit or whatever is in place by then.

    I'm worried about my late parents' house which now belongs 1/3 each to me and my brothers. My share is worth about 30K, but my brother lives there, so it's impossible to sell up.

    My opinion is that this asset will count as capital as soon at it is sold and that is the time for it to be declared (disclosed?). Am I right? I dread going through appeals and all that wrangle (I know only too well how vulnerable people are treated these days after a run-in with the redundancy service a few years ago), but I don't want to stack up trouble for later which is an even worse situation to me.

    I've scanned the websites for the probate, pensions, and benefits and I know there's 16K savings limit to most things for pensioners, but what am I supposed to do if there's no way to turn the asset value into rentmoney.

    Anyone with a similar experience? Please let me know.

    D.
Page 1
    • p00hsticks
    • By p00hsticks 13th May 18, 1:18 PM
    • 6,281 Posts
    • 6,774 Thanks
    p00hsticks
    • #2
    • 13th May 18, 1:18 PM
    • #2
    • 13th May 18, 1:18 PM
    I guess the question may be whether your brother is paying rent for living in your third of a house - he probably should be, and this would then count as income for you ?
    • sheramber
    • By sheramber 13th May 18, 2:00 PM
    • 4,830 Posts
    • 3,618 Thanks
    sheramber
    • #3
    • 13th May 18, 2:00 PM
    • #3
    • 13th May 18, 2:00 PM
    The value of a second property would normally be treated as capital.

    The pension credit helpline would be able to advise whether your circumstances would change that.

    Bearing in mind the number of years until you qualify for pension credit things may be different then.
    • pmlindyloo
    • By pmlindyloo 13th May 18, 2:09 PM
    • 11,628 Posts
    • 13,522 Thanks
    pmlindyloo
    • #4
    • 13th May 18, 2:09 PM
    • #4
    • 13th May 18, 2:09 PM
    What does the actual will say? Does your brother have a life interest in the property?

    Here is a link about pension credit and capital.

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/690030/dmgch84.pdf

    There may be a disregard for a period of time as regards the capital in the property depending on the circumstances. If there is nothing which says your brother needs to live in the property ( age/ disability/ life interest) then you would be expected to get a court order to force a sale to realize your capital.

    Pension credit has no capital/savings limit. Any money over 10 K would be counted as income at the rate of 1 for every 500 above the 10K and deducted from your pension credit. Depending on your state pension you may not be entitled to any PC.

    Guarantee pension credit gives you an automatic entitled to HB and full CT reduction.

    These are the rules at the moment. Things may change in the future.
    • Tabbytabitha
    • By Tabbytabitha 13th May 18, 2:54 PM
    • 3,083 Posts
    • 5,019 Thanks
    Tabbytabitha
    • #5
    • 13th May 18, 2:54 PM
    • #5
    • 13th May 18, 2:54 PM
    Is there such a thing as an "unrealisable asset" regards benefits after age 65?

    I'm only 54 and still working. but when I retire I'll just have the state pension. I'm expecting what I pay now for my little place should come from pension credit / housing benefit or whatever is in place by then.

    I'm worried about my late parents' house which now belongs 1/3 each to me and my brothers. My share is worth about 30K, but my brother lives there, so it's impossible to sell up.

    My opinion is that this asset will count as capital as soon at it is sold and that is the time for it to be declared (disclosed?). Am I right? I dread going through appeals and all that wrangle (I know only too well how vulnerable people are treated these days after a run-in with the redundancy service a few years ago), but I don't want to stack up trouble for later which is an even worse situation to me.

    I've scanned the websites for the probate, pensions, and benefits and I know there's 16K savings limit to most things for pensioners, but what am I supposed to do if there's no way to turn the asset value into rentmoney.

    Anyone with a similar experience? Please let me know.

    D.
    Originally posted by D.toleman
    It'll count as capital for means tested benefits whether sold or not.
    • Ames
    • By Ames 13th May 18, 2:57 PM
    • 17,331 Posts
    • 30,535 Thanks
    Ames
    • #6
    • 13th May 18, 2:57 PM
    • #6
    • 13th May 18, 2:57 PM
    Is the brother living there disabled or a pensioner?
    Unless I say otherwise 'you' means the general you not you specifically.
    • sterling47*
    • By sterling47* 13th May 18, 4:12 PM
    • 1 Posts
    • 0 Thanks
    sterling47*
    • #7
    • 13th May 18, 4:12 PM
    • #7
    • 13th May 18, 4:12 PM
    not the question you asked exactly but the situation with pension credit as I understand it is that the basic state pension is equal to the pension credit amount - so it no longer passports you to the extra benefits of being on pension credit. (full council tax and housing benefit)

    Of course - things may change before you reach retirement age - for better or worse.
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