Is this benefit fraud?

[Gingerangel]

Just found out a friend of mine who is about to come into a large sum of money is intending to hide this money in a relatives bank account and not declare it to the DWP and have her relative just give her the cash as and when she asks for it. She’s doing this to hide it from the benefits people…

I was worried about her and told her that I think she might get into trouble doing this however she’s insisting on going ahead with this and thinks the DWP won’t notice anything is amiss. Is this benefit fraud? Can she get into trouble? And has anyone else done something like this and got away with it?

I'm assuming that she did not tell the DWP that she owned a share in a house (assuming it was partly in her name) since claiming means tested benefits while you own a house you don't live in would normally make you ineligible.

It looks like she could be in a lot of trouble.

Yes its fraud, yes she could go to prison. Rightly so IMO

It sounds like money laundering, the Solicitor may not be able to pay it all to the ex if the house is in joint names

You could say that about most of the posts on here.

£16 billion !

Yes of course it's benefit fraud. If she can support herself for a while she should. DWP will be notified anyway regarding large sums of inheritance through HMRC. She will be in more trouble if she hides it. I really dislike dishonesty like this especially when people have been supported by benefits for some time already.

Not answering the direct question but if the funds are in an account in the brothers name and he dies, it passes under his will unless there's any paperwork to prove that it was a loan to the brother.

Only a fool-hardy executor would accept a claim on the estate without any paperwork

She's all but dobbed herself in by having a loose tongue.

It is fraud and her brother will need to provide an explanation for the huge deposit into his bank.

It's also money laundering as he'll be converting it to cash to hand over to her.

If someone reports her, then the DWP can trace it back regardless if they decide to investigate. At some point she has been named on the deeds of this house as co owner and a solicitor has been involved in the sale, presumably.

Not an inheritance. RTFT.

Yes it’s fraud,undeclared income
All very Father Ted the money was resting in my account and its got disaster all over it
when the BA find out
When the brother steals it
when a mate blabs or goes on social media for example

This is also true.

Of course it's fraud, and your friend should be ashamed of herself.

She might not get caught, but if someone decides to report her, then an investigation would clearly demonstrate that she had intentionally deprived herself of assets in order to make fraudulent benefits claims. I can't see why it would matter a jot that the money hadn't ever passed through her account because the investigation would still lead back to the facts.

I hope she does get reported and caught tbh. I have every sympathy for struggling single parents and I am very glad that we have a safety net to help people who are genuinely in need, but I have no time for people who steal what isn't theirs. If people like your friend didn't commit fraud, there might actually be enough money in the pot for people who really, desperately need it. Shame on her.

But somewhat inflammatory to start a thread asking if something is benefit fraud but make clear you have no intention of reporting whatever the answer

The brother may have to declare the income.

This is a stupid mess to get into. You are right to be concerned about your friend.

Quick google says conspiracy to commit benefit fraud, which is what this is, carries a max sentence of 10 years in prison. She's an absolute fool to consider doing this.

Yes it's fraud. And might bite her on the bum if the person who's holding the money gets greedy and decides to spend it themselves.

Is the house the former matrimonial home? If not, and she jointly owns a house she isn't living in, the value of the house counts as capital and she should have declared it. As anything over £16k exceeds the capital limit for means-tested benefits, she may have been committing fraud already!

If she gets caught, a prosecution is possible, as it would be pretty obvious that she's done it with the intention of getting benefits she's not entitled to. At the very least, the DWP would seek to recover all the benefits she's had that she wasn't entitled to, and possibly impose a financial penalty (although I have yet to come across a case where this has happened).

She can't "give" the money away either, it would be treated as deprivation of capital and she would be treated as still having it.

All the money from the sale of the house is going into her ex husband’s account, he’s then paying half into her brothers account so will be off the records for her.

I don’t know the exact figure (I didn’t want to pry) but it will be a lot, they outright own the house and it’s a house in a good area.

Wow that’s trusting. For all parties involved. How stupid.

But anyway, yes it is fraud. So she doesn’t plan to buy a house with the proceeds? She would still remain entitled to benefit then… otherwise she plans to squander it on crap?

As others have said there will be a paper trail through land registry.
I also doubt very much the solicitor will pay to one account for a jointly owned property.
Money laundering rules are very strict.
Your friend would be crazy to do this.
She's not going to be struggling if she's due a substantial sum will she?
And what if she falls out with the brother?
It's got disaster written all over it.

I no longer know, tbh.

Benefit fraud is tiny compared to tax fraud. The government doesn't give a shit about that.

And look at our corrupt Tory government!

Today I see Lady Mone has asked for a leave of absence - she of the £29 million PPE cash questions.

Is there any shame anymore? Our betters are at it every day, it seems.

Hmm. Is there any capital gains tax to pay? If so your friend could be in trouble as HMRC and DWP share data.

Of course it’s fraud. I hope she gets either reported and punished or her brother spends the money. I really detest people like this; it’s pure greed and she is stealing off the tax payer.

If it is over £10.000 the relative might get asked where it is from, one thing to hold a bit of someone else’s money in your account , are they happy to lie and involve themselves in the conspiracy to commit fraud and launder the money..

She's allowed to keep the money from a house sale for a certain amount of time
Would it he enough to buy her own house?