A couple of years ago my parents gave me large sum of money to use as a house deposit. Unfortunately with house prices as high as they are I haven't been able to use the money and it is still in the account I put it in. Dad is about to retire (at the age of 72) and wants to give me some additional money to make the deposit amount up to enough to use on a house I have seen. What worries me is Dad wants to claim housing and council tax benefit now he has retired and I wonder if the money he has given me (and the money he is about to give me) would be classed as deliberate deprivation of assets. It certainly wasn't given with that intention, it was a very generous and much appreciated gift from my very lovely parents. Does anyone have any advice?

 

Well, I am not too sure about this.  I think it all depends on the amounts.  You would be better to look at some of HtA's leaflets on this type of thing, or those of AgeConcern, or even ask your local CAB.

What you are saying, really, is that Dad can't afford to pay his own rent and council tax now he's no longer working, but that he had these 'large sums of money' that he could afford to give you but that now he wants to claim these means-tested benefits.  Hmmmm.  I think you do need some more definitive advice.

I did hear of a case recently where a woman had bailed out her son who was in mortgage arrears which meant that all her capital had gone, but then thought she could claim means-tested benefits - she couldn't.

Hi Harli, thinking about this again, it could well be construed as 'deliberate deprivation', or that Dad's application for means-tested benefits might be seen as fraudulent and at the very least, might be unsuccessful.

Sorry!

Margaret

I think the original sum given would be unlikely to be seen as "deprivation of assets", but if a further sum would leave your parents within the benefits entitlement threshold it would be regarded as still being their capital. They would not therefore be entitled to claim benefits. Presumably your parents are renting?

There are possible ways of legitimately dealing with such situations, but it can be complicated and you would need specialist advice.

Hi

After a little more research I am happy that the original sum would not be considered deprivation of assets but any additional sum would be. I have therefore declined my parents very kind offer.

Harli

harli

can i suggest you go onto the internet and look for housing benefit help, there is a guy called chris smith who is a specialist in this area, he writes books for local authority, social and private landlords, if you contact him he would be able to advise you on this.

his publications are very good and he knows housing benefit rules inside out.

good luck

regards

sue