renting inherited property from family on HB?


B

blobber

*Claimant details*:

Married couple, one child under one year old.
Male on Incap (long term, higher rate); carer's allowance (zero rate,
see DLA below)
Female on Incap (lt hr); DLA Care component high, mobility medium.
Joint Housing Benefit and council tax benefit and child benefit.

(Male is looking for work with support of specialist advice team).


*Background*:
The male's mother dies, leaving her 4 children (him and 3 sisters) her
one bed flat.

The mother got poor advice when creating her will, and did not specify
a trust be created to hold the man's share of the value of the home
after it was sold.

*Questions*:

Where should the man go for advice? CAB are giving some options, but
are not very helpful.

The man really wants to avoid "deprivation of capital". He doesn't
mind living off the capital, but he'd like to try to keep some of it
for savings / pension / etc.

How feasible would it be for the couple to live in the flat, paying
commercial rent to the sisters, and claiming HB for it?
 
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N

Niteawk

*Claimant details*:

Married couple, one child under one year old.
Male on Incap (long term, higher rate); carer's allowance (zero
rate, see DLA below)
Female on Incap (lt hr); DLA Care component high, mobility medium.
Joint Housing Benefit and council tax benefit and child benefit.

(Male is looking for work with support of specialist advice team).


*Background*:
The male's mother dies, leaving her 4 children (him and 3 sisters)
her one bed flat.

The mother got poor advice when creating her will, and did not
specify a trust be created to hold the man's share of the value of
the home after it was sold.

*Questions*:

Where should the man go for advice? CAB are giving some options,
but are not very helpful.

The man really wants to avoid "deprivation of capital". He doesn't
mind living off the capital, but he'd like to try to keep some of it
for savings / pension / etc.

How feasible would it be for the couple to live in the flat, paying
commercial rent to the sisters, and claiming HB for it?
He is obviously aware he could lose some or all HB. I assume he has
not notified the council of this change in circumstances otherwise you
would not be asking on here.

The man is a 25% share holder of the property and he wants HB to pay
his sisters rent, can't see that happening, can you?

OTOH if the council find out, under the new rules he could be banned
from claiming any benefit at all for 3 years.
 

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