Unusual Housing arrangement-needs to be acceptable to ESA

[Watermusic]

Am 60 and on ESA. I sold my house for £51,000.I have moved in with my daughter and partner and paid them £45,000 to house me for the rest of my days.Because of my change of circumstances I am filling in ESA3 and a form for council tax help. We are seeing a solicitor to draw up our arrangement legally. But I don`t know what form this should take.I am in danger of being accused of gifting her the money. Do I go for a Declaration of Trust, a lease or tenancy agreement or what ? I have spoken to 2 solicitors on the phone,one who just told me to go elsewhere, and a Welfare rights solicitor who told me to deal with it at a tribunal.Surely there is some way I can satisfy Benefits. I want something to prove our arrangement for my own peace of mind too.

[estellyn]

The only way I could see of this not having an effect on income based benefits would be if you were actually buying into their property and being put on the deeds. Otherwise no one is going buy the lump sum advance payment that large. The only reason a decision maker will see for it is in order to qualify for benefit.

[stevemLS]

Of course they will, it is very convenient that the balance left from the proceeds of sale is the maximum permitted before means tested benefit startst to be withdrawn.

[honeybee13]

Hello there.

 

I think you're right to take professional advice on this because of the Deprivation of Capital rule.

 

estellyn knows more about this than I do, but I haven't heard of ways around giving away capital. I do know that in some instances a local authority can treat you as if you still have the capital and reduce benefits accordingly.

 

HB

[Watermusic]

The only way I could see of this not having an effect on income based benefits would be if you were actually buying into their property and being put on the deeds. Otherwise no one is going buy the lump sum advance payment that large. The only reason a decision maker will see for it is in order to qualify for benefit.

 

Thank you. I have now just seen a solicitor and we think we will try and put me on the deeds as a restriction showing my rights of tenancy. I think that`s what we are doing as far as I understand it. I hope it will be enough to show that I have bought a roof over my head for life, and is not dissimilar to buying a new property,which would be allowed.