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Deprivation of capital
My client suffers from severe mental health problems. A few years ago his father who has since died bought the property they lived in from the council and gifted the property to my client so he is now the sole owner. My client has been living alone in the property since his father died. The client is struggling to cope though. He has large service charges which look like they will be covered by income support however he is expecting a large major works bill in the next few months. The bill is likely to be for several thousand pounds and the client is understandably very anxious.
The client has asked me that as he cannot cope with the property, knows that he will struggle to pay the major works bill and feels it is making his mental health worse, can gift the property to his brother and family and then move into rented accommodation claiming Housing Benefit. I believe that he would not be entitled to Housing Benefit in a new property as it will be treated as deprivation of capital if he gifts the property to the brother. Can any confirm this for me?
I think that’s highly likely yes.
Is there any reason he’s not trying to sell it?
Hello Nicky
Thanks for your post.
He became very upset when I asked about selling the property and I really was not able to get to the bottom of it. I have considered possible pressure from family although I would be unable to substantiate that.
Might it not be worth checking that if the major works can be paid by IS within his housing costs?