Pension Credits and deprivation of assets

[nothingevergoesright]

When dad was alive, mum got pension credits. Dad was disabled before he got ill, so got DLA and income support. My Dbro also left a sum of money, that went to my dad, but didn't affect their income.

When dad died, all the money went to my DM. The will specified about his half of the house, but the money and possessions passed to DM.

DM now has too much money to receive pension credits. This would be fine, except the house was already in state of disrepair.

They'd built an extension and planned to separate the two, to make two houses and rent out one. That fell apart when dad became ill. The 'original' house needs new windows, needs a new roof and a bathroom fitted.

The 'new' extension is bad. The kitchen is falling apart, there is mould everywhere and DM is a hoarder.

Today her gas to both places has been cut off. The old place needs a new boiler and the emergency gas people have cut it off and condemned it. There is also a gas leak in the extension, so that's been cut off too.

DM is worried about how to finance this and keeps on saying how she'd get a new boiler free if she was on PC.

Dsis has said DM should put the money into an account in our names so she goes below the PC limit. I can't help but think this is ridiculous as DM must have declared this money if she her PC's stopped, so surely it would be depravation of capital?

DM wants to put it into an 'executor's account' (DM, Dsis and I are executors), but again I'm not sure. Probate was granted over a year ago and again, the money was solely left to DM.

I was under the impression that DM could use the money for necessary repairs (roof, new boiler so that the pipes don't freeze in winter and whatever needs to be repaired to stop the gas leak).

Essential repairs should be allowable. Getting a new boiler especially.
The money is there, why on earth isn’t she using it to improve her quality of life?
Will the amount she has cover all the work required?

She’s also allowed £10000 in savings before affecting pension credit.
She needs advice from age concern or a benefits charity

She can absolutely spend her own money on essential repairs. I would keep relevant receipts and written notes on how much has been spent on what. A new boiler isn't deprivation of assets.

I’m a bit confused?

does she have the money to pay for the repairs?

is she worried if she spends it on a new boiler it will be deprivation of assets? It isn’t. Why on earth does she think she can’t spend her own money however she wants? Is she competent?

or is she thinking that it isn’t fair she should be spending her own money on a new boiler, and her reasoning is if she gives away/hides enough money it will make her eligible for a free boiler?

I suspect it’s the latter…

Sorry, if she has the funds to pay for home upgrades then she needs to pay.

why should the tax payer fund these?

She has money so she should spend it on essential repairs. There is no point having money but not spending it and living in a run down house. Its not deprivation of assets to spend your money on stuff that needs money spending on it.

What do you mean deprivation of assets? They're her assets - she can deprive herself of them to her hearts content, and it sounds like she should frankly.

I'm confused why anyone would think of putting her money into an executor account. They're accounts used to distribute a deceased persons estate and your fathers estate has been distributed. She can't hand it back.

They are obviously trying to hide the money so she can get a free boiler , to which I assume pension credits are the gateway.
The benefit people will require proof of any money that’s been spent, any cash that can’t be accounted for will be treated as if she still has it.

Why she’s playing this silly game when she has money in the bank is beyond me.

Essential repairs won't be deprivation of assets.

And as she was on pensions credit before, it's unlikely that the sums of money involved are large - you claim as a couple when both are still living, or were they claiming under the disability/carer provision?

Age UK or CAB are probably the best sources of advice

What she should not do is give her capital to you. Because gifts are not reversible, and she may need her assets herself. Also, they are subject to tax (unless under annual limit, or for a few other specified purposes, or are tapered out after 7 years)

Essential repairs to her house will not be deprivation of assets.

I assume that she is worried that if she spends anything and then needs to go into a care home that they will try and claw back the spending.

In general, money that you need to spend on bills and keeping your house running are very very unlikely to be considered deprivation of assets - it's more the 100k gift to your children that falls in that category.

Your mum needs to spend her inheritance / savings on the necessary house and boiler repairs. If that means that her savings are depleted, she may then be legally entitled to claim pension credits once more. She should not try to hide her assets to try to claim benefits that she is not legally entitled to. It sounds as if your sister is suggesting to your mum that she should commit benefit fraud, the consequences of this could be disastrous! If found out she could have to repay the money and could end up in court. The money spent on the house will not only make your mums life easier but will protect the asset for you & your sister. The value of the house will deteriorate over time if the significant issues described are not addressed.

It’s not deprivation of capital, but whilst she has the money in her account, it would be taken into account on her pension credit claim.

The first £10k of savings is disregarded, thereafter a £1 tariff income is applied for every £500 over. Once she has made the relevant repairs, she can make a new claim or check her entitlement online, but absolutely do not transfer money into another account to hide it, this WOULD be classed as fraud and could get her into a lot of trouble.

Thanks all. I've made it perfectly clear she is not to give it to and she's had some repairs done, but not all yet.

The main sticking point now is that my sister needs a new boiler, not only that, but it needs to be resited, or the flue re-positioned, due to her partner building a conservatory across her kitchen, meaning the flue now vents directly into it.

Apparently he knew it wasn't allowed.

Dsis is pleading poverty, but I've told DN not to give her any money, as if they could afford a conservatory, they could've afforded a new boiler, plus the flue issue is entirely their fault. (Plus her partner has additionally spent £7000, buying bits to renovate a car, so them being careless, does not mean DM - who's living with a falling down house - should bail them out of being cold this winter.