nevip
welfare rights adviser, sefton metropolitan borough council, liverpool.
Member since 22nd Jan 2004
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RE: Pension credit and capital
Tue 01-Apr-08 04:47 PM |
First, your client needs to see a solicitor, as the issues are complex. Questions that need answering are: who has a legal interest and who has a beneficial interest (and, in relation to the beneficial interest, in what proportion) in the property? What is the nature of the declaration (if there is one) on the land registry forms? What were the intentions of the parties at the time of the purchase of the property? A simple assumption of 50% interests is not a proper starting point. Is there a trust surrounding the property? No one can advise you accurately until these questions are answered and they are not always as straightforward as might first appear.
One thing is definite though; any rental income from the property is treated as capital and not income. And, if she has a beneficial interest, which she can realize (by asking a court to force a sale for example) then that is taken into account as capital but see the various provisions around disregards.
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