Terms & Conditions

[wintlejb]

Could you please provide opinions on the following scenario relating to the timing of the disposal of a property and deprivation.

We received an application from an elderly claimant in September 2021 whose son has lasting power of attorney and has done since November 2017.

On that form the claimant accurately reported that she did not have an interest in any other property and that she had moved into her current property in November 2020.

HB was awarded back to June 2021 due to pensioner take-on rules.

It was later established that the claimant had previously had an interest in another property but that had been sold in April 2021 for £115k.

The proceeds of the sale were gifted to the son (who has LPOA) on the basis that the claimant could see her son enjoy the benefit of the proceeds of the sale whilst she was still alive (bearing in mind that the decision would have been made by the son as he had LPOA). The son has spent the majority of the proceeds paying off his mortgage and other liabilities.

The son has stated that he only made an application on behalf of his mother following advice from a representative of his mothers’ housing provider.

A decision maker has determined that the proceeds of the sale should be taken into account as notional capital and, therefore, entitlement to HB has been removed.

My issue with this is that the timing would not appear to be indicative of deprivation and from the sons’ statement it is not evident that it was done to obtain or increase entitlement to HB.

I’m minded to revise the decision but if any have an alternative view….

Thank you

[John Boxall]

My immediate concern might be that it could be financial abuse. I would talk to Social Services

Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

Wilkins Micawber, Ch12 David Copperfield

[wintlejb]

There are multiple departments involved but I was hoping for an opinion from a purely HB point of view.

[John Boxall]

I might be inclined to wait until some of the other departments make a decision, but

I might think of it as the officious bystander, so, how exactly were you planning to meet your living costs after the money was given away?

What was their income at the time, clearly if the amount of HB is relatively small or perhaps they get AA/PIP which has a significant affect on entitlement then you might say that you probably could have lived without HB. If, on the other hand they have a high rent and just a state pension then how exactly did they plan to pay their rent.

Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

Wilkins Micawber, Ch12 David Copperfield

[Mike Hughes]

Having LPoA is not the same as having activated one so it can’t be assumed that the son played any active role in this transfer of money other than receipt. My first stop would be to see when the LPoA was activated. What has been described is not especially unusual. In some circumstances there may be financial abuse. In many there will not. It will simply be a natural conversation and often at the insistence of the parent.

[Author]

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