Renting and benefits

[lurkinginthenorth]

I am not sure if this is the right place to post, but would like to ask a question regarding my mother.

She is 56, recently divorced. She works part time (26 hours) on a little more than minimum wage and earns roughly £780 a month.

She is living with us atm until her financial settlement is agreed.

If she has no money behind her, what benefits is she likely to receive to help her with rent and living costs?

Is she entitled to benefits of any kind if she has money behind her (e.g. £70,000)?

Rent (at the cheapest!) is currently about £400. That leaves her with £300 a month for; utilities, council tax, phone, food, car, insurances etc, etc.

She cannot possibly live on that!

Is she entitled to benefits such as housing benefit or working tax credits etc?

The land is ours. She puts the money into the build cost, we own the land it sits on. A bit like a leasehold. As long as she lives there, we will not ask for rent costs and hopefully, all going to plan financially as we have quotes in from local trustworthy builders, there will be no mortgage.

Hence why we would get a solicitor involved to protect both her and us.

it's tricky knowing what to do for the best:

1. Build, be rent/mortgage free and HOPE she gets some help towards living costs.
2. Rent - live off her financial settlement until retirement and HOPE in 9 years benefits still exist!

I think I already knew she wouldn't be entitled to anything with £70,000 uder her belt but he is under the impression that she will have some of that £70,000 well into retirement! I think she is deluded!

She won't get any benefits in her current situation if she lives in a house you build. She should have a percentage of the house in her ownership.

Without any ownership in the house, her best bet would be to rent. She would get help with the rent, and would get more benefits when she retires than she would staying on your land.
The set up you are suggesting mainly benefits you.

Your dm is 56! And has £70K. I don't think either of these factors would suggest that your dm is going to have her rent paid and receive benefits.

She won't get anything with £70k. She will in the future once she has spent the money, get housing benefit and benefits when she retires.

"£70,000 is not money you can live on. It soon goes!"

Are you joking??? That's 4 and a half times my salary so she could live on it for 4 or 5 years as a single woman.

Oh, I totally agree, she could/can live on £70,000 for a few years BUT I am thinking long term; i.e. retirement.
Thanks colley for the advice. We have a lot to think about and maybe a risk or two with our decision. Either way, it is spend the £70,000 building the bungalow (with a little left over - hopefully) and she lives on her £750+ or whatever I said a month OR she rents, lives on her wages and a bit extra from the £70,000 and hopes she gets benefits come retirement AND that she can still stay in the same house she rents.