Living In A House Rent Free!

[UKSWF]

My friends (reasonably wealthy!) sister has just bought a property for my friend to live in rent free nearby to her as my friend is disabled and needs a bungalow type house. My friend is currently claiming welfare benefits but if she sells her own home she will lose her benefits and will be living on increasingly dwindling savings. Her sister has made arrangements for my friend to keep the new house in the event of her untimely demise. Any thoughts?

[Tilly2]

Is she going to rent out her current house, or just leave it standing empty?

[murraymints]

move into new bungalow..and rent house out..then she will have an income and keep her assets in the house...'till she is ready to sell...or in receipt of state pension... she will only lose means tested benefits...

[UKSWF]

Her sister has her own paid for home where she lives with her husband., my friend is intending to sell hers and move 200 miles to be near her sister (hence being unable to claim benefits) Sister is of the mind that money in the bank is a waste and having family nearby and safe is priceless!

[Tilly2]

I would agree with the sister.

[bednobs]

i cant see the problem; PiP is not a means tested benefit, so if she gets that she'll continue to get it. even if she loses her means tested benefits, she'll have lots of money (presumably) from selling her house to live on, an it's not like she'll miss housing benefit as she wont have to pay housing costs.
When her savings do dwindle, she'll be eligible to claim benefits again.
this is how benefits are supposed to work - they are there for people who need them, not people who have money, but when she does nee money again, she can get it again

[UKSWF]

Bednobs & Murraymints I totally agree, but my friend is so used to being an independent person it’s not an easy decision to make! She finds such kindness so magical but scarey. Especially as her mum died recently!

[UKSWF]

Thank you all, my “friend” is reassured by your input!

[UKSWF]

The friend is just scared of making such changes after mum died! But I guess time is right! Onward and upward! We will be ok,