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Hi
I'm currently working for a retirement village in the Midlands and we are working on applications from elderly people who want to come and live here and working out their benefits entitlement.
I have come across a couple of cases in which the person in question has a second home which they do not want to sell. In one case, they are putting the property in trust for their daughter, and they are under the impression that this will avoid it being counted as capital towards their HB/CTB calculation. There is a certain amount of rental income from the property which will also go to the daughter. The property has only just gone into trust, it has to be in trust for 7 years before being discounted as capital, doesn't it?
The other case is a couple who have a house in Spain. They say they are not making any income from the property and that it has very little value, although as I only saw them briefly, I'm not sure why it would have such a low value.
I'm very sceptical on both cases that they would get any benefits on moving into the village, but could anyone confirm this - are there any circumstances where someone could claim HB and have a second property? I haven't turned any up in my research.
Neither couple has enough income to afford to live at the village without benefits, so it is important I let them know the score in the next day or two.
Thanks in advance, Ray.
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