Transferring ownership of house whilst on PIP

[goodgodlemon]

A family member is currently receiving PIP due to a chronic illness. She has her own house (was left money in a will). Prior to buying this house she was in LA flat getting her rent paid. The house now needs lots of extra work and she can't afford this. Could she transfer ownership of the house to another family member and then pay a small amount of rent (which could be reclaimed via benefits maybe). We don't want to break any rules but also we need to release some money to get house sorted. The alternative is for her to sell and move into a retirement complex but we are exploring all options as a family. We want to do everything by the book. Thank you

PIP isn't means tested like some other benefits. It won't be a problem.

I think that's really murky territory, and probably benefit fraud. If she can't afford the maintenance/work it's probably a better idea to sell and buy somewhere that she can afford and won't need much work doing.

PIP isn't a problem - but transferring ownership and then claiming money to pay rent on what was her own house would be.

PIP isn't an issue.

Is the relative on means tested benefits such as Universal Credit or Income Related ESA?

I would expect that you couldn't give away an asset then claim benefits to pay rent on it (obviously PIP is different).

Could the family member buy a share of the house and the amount paid could pay for the repairs?

Yes I'm uncomfortable with this and agree it's too much of a grey an area. I think we will end up setting up a maintenance fund between the family. Thanks for the comments!

If you can afford to do this, I'd be looking for a way to ring-fence some of it legally so if the property needs to be sold to pay for care etc later on, the money you've put into the property can be reclaimed by those who have paid for the maintenance. Maybe by owning a small percentage of the home?

And if the people she's going to be transferring the property to aren't going to be paying her a fair market value for the property then she'll be considered as having deprived herself of assets if and when she needs any means tested benefits or care provided ...

Deprivation could certainly be an issue if they need Care.

As others have said PIP isn't means tested.

However, transferring the house and claiming housing benefit would be "deprivation of assets" and benefit fraud.

It would also be risky. The family member could evict her and she'd have no comeback as she'd no longer be the owner.

She would be better keeping the house and getting a paying lodger in to help with her finances.

Does she want to move? If she actively wants to move to somewhere more manageable (which I think I probably would in her shoes) then I think that is a no-brainer. If she wants to stay put but can't afford the repairs then maybe equity release might be a possibility or the family could pay for the repairs but make the money a loan to be repaid on any sale of the house, so that it won't get swallowed up in care fees if she needs more help later. Personally though I think I would be encouraging her to downsize to somewhere more future proofed. There are so many threads on here about elderly relatives living in unsuitable properties and their adult children tearing their hair out in frustration at their unwillingness to face reality.

Pip isn't means tested. You can be a billionaire and still receive it.

Realistically though, PIP isn't her only income. Detail missing here OP

Hi all thanks for your replies - some really helpful suggestions. Just to answer a few questions. PIP and small amount of other benefits is her only income. The house is not worth much (small and not great area). Yes she would like to move but nothing cheaper - would need us to all contribute (even if move to one bed flat) so downsize not an option. Can't have a lodger due to nature of illness. Thanks again - Mumsnet is such a good place to get advice / thoughts.

Pip not an issue.

The other benefits are likely to be an issue.

Sell and pay rent to a private landlord would be another option.

This - it would be a clear and obvious benefit fraud. Assuming she has so little money that she can't afford repairs, would she be able to afford the costs of a retirement complex (which are also often money pits that you can't sell after), and would she even be allowed to claim housing benefit and/or if she has effectively made herself intentionally homeless? I don't think this is a straightforward and I would advise getting some proper advice about her circumstances and any support she may be eligible for - probably Citizens Advice or Shelter?

The other benefits are far more important here that PIP. If you have capital you can't just give it away then claim housing costs.

Yes I've realised that. We're going to set up a maintenance fund and get some advice on how to manage it.