OK I confess at the start I am looking for info, rather than comments on reasonableness, but I wasn't sure where else to post.
This all started when my X-SIL was most definately being unreasonable herself.... my DB gave her all the equity from the house when they got divorced (80K) so that she could buy a small flat for her & the kids (4 & 6 YO). Instead of doing this she moved into her mum's council house and put half the money into trust for the kids (it is now locked up until they are 18 and she can't get it back). The remainder was frittered away over a couple of years (half going on a failed business idea).
Anyway, her mum died recently and the council have now told her that it is her own fault that she doesn't have any money left and she is not allowed to stay in the council house. They have told her she must move out and move into B&B accomodation (which she then needs to claim for from the council). My DB can't help any more because he is flat broke (and he has nowhere himself where he could take the children).
Can the council do this? And does this sound plausible (my XSIL is by all accounts going spare about it all so I guess it is true and not just a ruse for more money from DB)? What should she do? If she just refuses to leave the council house, will it all go to court and will she be kicked out anyway? I would be the first to say that she has been very very stupid to do this with the money (and I am sure that putting some of it in trust was probably a deliberate ploy to avoid 'wasting it on rent') but that is by the by, she is where she is and I don't really know what the council expect her to do (they seem to think she can magic the money back). I am very that my nephews are in this position and don't know what to advise DB to do..... any ideas?