Options to avoid losing means tested benefits

by **pimeson** on Fri Dec 23, 2011 1:33 pm

Hi,

I wonder if anyone could be kind enough to help me with my query. My in laws (both in their 70s) recently moved from their own house to a rented flat, due to my mother inlaw having advanced alzheimers.

Their house isn't worth much (about £50-60k) and they are struggling selling. It's becoming a burden and source of stress to my father in law and he just wants to get rid of it quickly.

He is currently receiving several means-tested benefits: help with rent, council tax, and days / weeks out for my mother in law with an Alzheimers organisation. We have warned him he will lose the means tested benefits if he goes ahead, but he's got a 'don't care' attitude. If he loses all his benefits that would amount to around £1k per week so the money from the house would be gone in under a year. I don't think he can comprehend this fact.

He did seek financial advise and the feedback was along the lines of: you can't give anything away except £1k per parent per child per tax year. He was also advised he could buy a car as that does not consitute an asset.

My questions are:
1) Is there anything he can do in this situation to avoid losing what little money he has in his house.
2) Is buying a car an option. If so how much can he spend? Can he buy more than one car? He doesn't drive - would that make a difference - he would by the car for one of his children who would then chaffeur him?
3) Are there variations to this depending on local authority and individual case?
4) Is the £1k/year/child factual.
5) Who specialises in this area who I could contact?
6) What are the consequences if he did simply spend the money - gambling, holiday etc?

Many thanks in advance to anyone who can offer any advise?

by **Lee Young** on Fri Dec 30, 2011 4:26 pm

Virtually anything he would do now, at this late stage, as a gift would be seen as deliberate deprivation of capital and would not be tolerated by the local authority. He could nuy a car and this might work, but as he does not drive himself the local authority would see right through it. If there is anuythig that might mnake his life more comform,atble at home/in a home then he is perfectly at liberty to do that. Perhaps a plasma tv?

by **Lee Young** on Fri Dec 30, 2011 4:27 pm

The £1000 per child is probably a referencetot he annual IHT limits, but these are not relevant for care fees funding.

by **pimeson** on Fri Dec 30, 2011 10:15 pm

Many thanks Lee.

What are the consequences if he did just blow the lot - e.g. in a casino? He really is at the 'don't care' stage - I suspect as a result of looking after someone with advanced alzheimers for years.