Seems too simple a question but I have to ask now I've started thinking about it.
Client's grandson wants to give her cash to buy her council house which I'm assuming he expects to inherit). This shouldn't have an effect on her benefits should it?

Sue

He should put this arrangement in writing specifying that the money only be used to purchase the house or it returns to the son. This creates a sort of quistclose trust so that the money does not become part of her capital.

Or she (with his assistance)purchases the legal title from the council and he just pays the money directly to the council.

Either way, there should not be a problem.

regards
Paul

"Either way, there should not be a problem"

Certainly see no problems with the capital side.

However?

I would get legal advice first.

What if she goes into care?

What if she borrows or re-mortgages the house?

What if she has debts and is made bankrupt?

Whats to stop her leaving it to someone else?

All the grandsons money is lost.

just recently advised a widow, whose son purchased mother's council house for her with cash - he's hit some financial problems, and she has mortgaged it so she can help out him, repaying the money used for her house purchase to him. the house would have passed to him on her death, and they're just a regular family, not out to screw each other. she wanted him to be with her when she came to me for advice.

She had told the DWP what she was doing and they were cool - told her it wouldn't affect her pension credit, and just to put a brief note in writing.

However, at the neighbourhood office they frightened her half to death with scary tales of depravation, woven in to the 'You shouldn't have done that!' lecture.

Probably in response to her trembling and tears she was then given perhaps well- intentioned explanations of why her actions fell under the heading of 'THINGS YOU SHOULD NOT DO WITHOUT CLEARING IT WITH US FIRST, OR YOU COULD GET INTO TROUBLE, illuminated somewhat clumsily, it appears, with 'fer instances' from a range of possible attempts to abuse the benefit system which she could in theory, be making... more i gather, to demonstrate that there is reason and rationality in their actions...they are not monstrous out- of- control raving lunatics...

but it only made it worse...it all sounded crazy and alarmed her further...

it was a bunch of nonsense, but she was very upset and frightened that she would be accused of wrong-doing, and it took some time and effort to reassure her.

there is an implied trust between them, understood within the family, and there is at least, solicitor's proof of son's beneficial interest, not that that ought to come up at all, but it would probably be beneficial if she makes a will...

Thanks for your responses which seem to have covered those aspects about which I also had concerns along with possible pitfalls. I have briefly related these to her but told her I'd only be dealing with benefit specifics and that she should seek other advice about any problems she/the family might encounter.

To be honest, I've a bee in my bonnet about the sale of council houses. Recent reports are that we have >100,000 people on the waiting list in Gtr Manchester. This purchase is solely for her grandson's investment purposes I'm told he has "lots of money" so i had to have a silent grrrrr.