Deprivation of Wealth

Hi

I wonder if you could help please.

My Daughter is currently on Income Related ESA and lives in a property with a mortgage for which she receives SMI which pays the interest.

Due to ill health, her and her Family need to move to a house nearer us and with a 2nd toilet which costs more. We are willing to fund the difference between their old house and the new.

My question is this. Would us 'gifting' her the difference be seen as 'deprivation of wealth' with regards to the ESA? If this is the case, could the property be owned jointly and a Declaration of Trust drawn up?

We are seeking help from a Solicitor but apparently each case is considered seperately.

Just wondering if anyone has any experience of the above situation please.

Many thanks
Dizzy 55

Hi Dizzy,

Deprivation of Capital happens when the DWP believe that a claimant has spent, disposed of or refused money in order to gain benefits. Spending in order to buy the house in which you live is usually considered acceptable but,as you have heard, the rules are not terribly clear and each Decision Maker can interpret them differently.

From what you have explained, I don't think your daughter will have a problem but you are right to get a solicitor to look at your plans. If you are going to do this, make sure you use one who understands benefits law, don't take the word of anyone else!