Q:My elderly mother really needs to move out of her house to a flat nearer family, but would find it hard to manage the rent without housing benefit. Unfortunately at present she could not claim housing benefit as she owns he current house.
It was suggested she could transfer ownership of her current house to her children so she no longer owned her own house, and could claim benefit. I have read about such methods being used before, but I am concerned of legal or tax implications. If at all possible we would like her to take the flat so it would be easier for family to care for her, but I'd hate to be caught in a legal minefield.
What are the options and considerations for her to transfer the ownership of her current house (currently valued at around ￡90,000) to her five children, so she could claim housing benefit towards a flat.
Why doesn't she sell her house and buy a flat near OP? Or am I missing something?
Because she thinks the taxpayer should pay for her retirement instead.
Why doesn't she sell her house and buy a flat near OP? Or am I missing something?
Yes you're missing the "we want to keep all of her money for us & have all of you pay for her keep instead."
I thought it was pretty clear.
Why doesn't she sell her house and buy a flat near OP? Or am I missing something?
So she sells the house and then she has the money to pay the rent on the flat. Or, she lets her house out and the money she collects as rent pays the rent she owes on the flat.
It was suggested she could transfer ownership of her current house to her children so she no longer owned her own house, and could claim benefit. I have read about such methods being used before, but I am concerned of legal or tax implications. If at all possible we would like her to take the flat so it would be easier for family to care for her, but I'd hate to be caught in a legal minefield.
SHE is likely to be caught in a benefit fraud minefield. She will have to lie to get (full) HB.
What are the options and considerations for her to transfer the ownership of her current house (currently valued at around £90,000) to her five children, so she could claim housing benefit towards a flat.
Sell or let the house out. Giving the house away in order to collect benefit and not revealing this is fraud. She has an asset, in the form of the house, and she should use this to finance the cost of her living in the flat – after all, she won't need the flat AND the house. Google
benefit deprivation assets
or start with this factsheet (http://www.ageconcern.org.uk/AgeConcern/Documents/FS40Transfer_of_assets.pdf) from Help the Aged which deals with deprivation of assets and fees in a care home, where the same principles apply.
If she gifts they'll take that into account when she applies for benefits and they'll send her packing.
Do you not think if it was possible everyone would be doing it?
She will either have to sell her current house or rent it out and use the income to pay for the rent on her new flat.
Why should young people have to pay for an old persons retirement when the old person has enough money to pay for it themselves?
WTF happened to "My house is my pension"?
All we heard for decades from old people was "my house is my pension it will see me through retirement" yet when it comes to retirement they suddenly change their tune and demand that the taxpayer pay for them.