Capital

We have a client who is due to inherit circa £200,000.00 – she intends to purchase a property with it, currently private renting and in receipt of IBJSA, HB, CTR, CTC and CB for her son.
On the face of it when the capital is inherited the client will lose entitlements to IBJSA, HB and CTR as excess capital.
Can the client ‘ring fence’ the capital to buy a property, on the basis she instructs a solicitor for example or would she need to come off of benefits and then reclaim once she has purchased the house? Also assuming that if buys the home, the capital would then be disregarded, that it would not count as deprivation?
Any ideas or thoughts most welcome.

This capital thread might be helpful?

Paul,

That is, so it is far from straight forward.

Many thanks.

I can’t recall if a specific rule classes purchasing a property as something other than deprivation, but if not, it depends largely on whether securing benefit entitlement is a significant motivation in purchasing the property.

Edmund Shepherd - 20 August 2014 12:42 PM

I can’t recall if a specific rule classes purchasing a property as something other than deprivation, but if not, it depends largely on whether securing benefit entitlement is a significant motivation in purchasing the property.

which it wouldn’t be - the claimant would be securing herself a home from which she could not be evicted, and would also be reducing the expenditure from the public purse (no more HB entitlement)

Also, of course, the Child Benefit would not be effected - that, as I recall, is income not capital dependent (subject to income received from whatever she has left).

and (in addition to what I said on the other thread) you need to consider the price of suitable accommodation in your area.  if houses in the area suitable for her family come in at that sort of price, then she may have no money left and in fact have an asset that falls to be ignored (being her house).

reflecting on this, it may be worth her while house hunting now and deciding what she’s going to get - if, e.g. it’s going to be a new build, then she and you will know exactly what she’ll have left.

and a further thought - it will, presumably, need furniture etc….

Claire,

Many thanks she may just need an aga!

Cheers

roecab - 21 August 2014 10:03 AM

Claire,

Many thanks she may just need an aga!

Cheers

LOL. we treated ourselves to one a few years ago; absolutely the best cooker on the planet, and can save on heating bills too.

Speaking of Capital disregards : If you sell your house with the intention of buying a home with the cash then it can be disregarded for 12 months for benefit purposes

If 15 months down the line you decide you cant find anywhere you like and start to live in social housing permanently (and then keep the cash) is the capital regarded as relevant after month 12 or after month 1?

Client of mine in this situation (pc claim).

Thanks, in advance