deprevation or not

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    We have a claim here and differing opinion unsurprisingly. The story is as follows…bear with me:

    Claimant lives in a property with a mortgage and we are paying CTB. Claimants father passes away in february 2009 but had already gifted her the house in late 2008.

    Once the father has died the claimant puts the house on the market as the proeprty is in a different part of the country and does not wish to move there. There is also £23705.23 paid to the claimant which is to be passed onto the claimants niece and son as part of the will. The claimant sells the property on the 15.10.09 for £246,647.50.

    On the 12.11.09 she purchases a new property in cash for £279818.83 as she has not sold her own property yet. As she did not have all the money for it she has borrowed the £23705.23 from the niece and son from the will and also borrowed a further £5000.00 from her son to help buy it.

    On the 21.05.10 she manages to sell her own house which leaves her with proceeds of £49007.05.

    She states she had to pay back the £23705.23 as per the will however she seems to take a while in paying this back she pays £13000.00 back to her niece within a few weeks and the £5000.00 she borrowed from her son back to her son a few weeks after receiving it. but the remaining
    £10705.23 she owes her son she does not pay back until 6 months leter.

    She purchases a brand new car straight away for £9000.00.

    Whilst all of this was going on she was in receipt of Income Support which they have now cancelled back to the 13.04.10. They were not able to tell me why this date but based on what they have told me they have used the proceeds of her fathers property as capital and nilled her on it even though she has used this to purchase a new property.

    She has applealled against this but they have turned her down again even though she clearly has no capital left.

    The problem in this office is the house she has bought outright is far bigger than the proeprty she owned and had the mortgage on. Personally I dont see that as an issue but I am in the minority as after all if we all were able to pay off our mortgage we would but to satisfy the office is it even possible to turn someone down on the basis that she deprived herself of capital for buying a house too big for her needs.

    My other issue is there will be a period where she capital of £16000.00 or more but for part of this period this will becuase she did not pay back the money left in the will to the niece and son. Am I able to disregard this or is it tough that she didnt pay it back as soon as she received the proceeds from the sale of her property.

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