Deprivation of Capital

[Thruppenny]

Hello,

 

My sister has offered me half of what she received after our late father's estate was settled. (We didn't get on and she was the sole beneficiary.) Not unnaturally I'm eager to accept the £100k.

 

I live in a council house and am currently in receipt of contributions-based JSA, Housing and Council Tax Benefit as I have very little capital and savings.

 

The last thing that will occur is for me to accept a cheque from her because the second such a sum appears in my bank account I'd be disallowed both means-tested benefit I currently receive and any other of a similar nature in future until I could prove I'd spent at least £84K of it legitimately in the opinion of the DWP and/or local authority.

 

A simple solution would be for her to invest it in one of her savings accounts which would afford me a small usurious income (naughty, I know!). Another is for her to purchase another property outright, then I move into it before she gifts it to me.

 

Ideally, though, I'd like to purchase my current home outright (circa 90k after a discount thanks to many years of tenancy) via a cheque drawn on her account to the conveyancer on my behalf so that I would never possess the capital to deprive myself of.

 

Would the above scenario be kosher? I outlined that plan to a front desk adviser at the local authority who wouldn't commit herself to a yes or no and also had not the faintest idea who at her work had the clout to give a definitive answer in black and white.

 

I'd be grateful for any opinions and insights.

[scaredtodeath]

well from a common sense point of view, you buying yr own house would mean you dont have to claim HB any more right?? so would be saving council ££££ BUt what makes sense to mean probably won't to them lol I have no idea but someone will be along who does I'm sure lol

[Thruppenny]

Yes, I forgot to mention that if this scenario is okayed then I would of course withdraw my claim for Housing Benefit immediately. But not Council Tax.

 

The lady I spoke to about this, her disapproving expression and body language couldn't have been more negative if I had announced that I was a former axe murderer or something equally terrifying.

[Nystagmite]

It may be worth seeing if you can talk to someone who is a little less judgemental.

[honeybee13]

Hello there. I don't know the ins and outs of CT, HB etc, but I think you're right to research this very carefully.Firstly, if your sister wanted to gift money to you from the will, she could have organised a document to do this without tax implications [deed of variation, I believe]. As she hasn't, then gifting you money could impact on her estate, won't go into the nitty gritty right now. And if you don't get on, why is she offering now, do you think?If your sister invests money for you in her name, firstly it could cause her tax problems and also if you ever fell out for instance, you could have no claim to the money.CAG would never recommend breaking the law, I should point out.I think this is complex, hope some other caggers will be along to comment.My best, HB

[honeybee13]

Sorry, I put paragraphs in my post and have tried to edit them back in, but I believe the site is making changes and it's gone a bit odd.My best, HB

[jadeybags]

I can just see DWP saying you're depriving yourself of capital. If it was me, purely hypathetically speaking of course, I would come off the benefits, buy the house, have the remaining 10k for the initial living expenses, go out my way to find a part time job of say 30 hours a week, Sainsburys are starting to advertise in june, claim working tax credits top up. Working tax credits isn't based on any savings, so even if you had nearly 10k when you claimed, you'd still be entitled to tax credits.

Then you own your own home. No need to claim housing benefit again.

[ErikaPNP]

What you appear to be seeking is a manner to get around the system, which CAG cannot support. Thread closed.