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PCGC - Deprivation, possible.
Client owns a property in the Philippines valued at approx £25k so a £30 tariff income is being applied for Pension Credit in November 2011 the client’s State Retirement Pension became payable and with a small occupation pension he had, as well as the tariff income, he is £8.00 over PCGC limit because of this automatic or pass-ported Housing and Council Tax Benefits have been lost as no PGCG so assessed capital of more than the £16k limit
Client wants to know if he can place the property into a trust for his children and my worry is that if he does he could fall foul of the deprivation rule in the same way that he more than likely would if he simply assigned the property to him.
My client is stuck as his current weekly income is £119.15 and his rent is more than this so he cannot live.
Any suggestions, as well as possible answers to the above question
As ever thanks in advance.
I think all roads leading to deprivation if he does that. I suppose the obvious thing is to take reasonable steps to dispose of it (hence attracting disregard) or move an elderly or disabled relative in if there happens to be anyone suitable?
The only other thing, that someone has suggested, was that his kids who invested in improving the home could claim an equity share and so reduce cl’s capital value?
The only other thing, that someone has suggested, was that his kids who invested in improving the home could claim an equity share and so reduce cl’s capital value?
That’s perfectly possible depending on the extents of the improvements and if they add value to the property.
Add the traditional questions:
How was it valued
Are there sitting occupants
Is ownership shared
etc.
All of which might bring the value and tariff income down.
And how easy would it be to sell it and export the proceeds of sale?