house deeds and housing benefit...

[joko]

i currently receive housing benefit for a house i live in that its rented to me by my dad.

the house is more or less mine - if you get me - dads gift - just not on paper

we have a dilemma - id like the house to be legally in my name - to safeguard it from my brothers claws and also so i can get loans etc, and to avoid inheritance tax when the time comes (my dad is 81 you see), however my parents are reluctant to officially do that as it means i will no longer get housing benefit...and as pensioners it is important income for them

is there any way they i would still be able to get housing benefit for them for the times i am unemployed, while the house is officially in my name?

cheers

[sara3]

no, and I'm not sure you should be getting it now. do the Local Authority know the house is owned by your parents?

[IggyB]

Presumably you and your parents have a tenancy agreement so that when you are working you pay rent and when you are not housing benefit is paid to support you. Shelters have a good explanation regarding some of the problems regarding this http://england.shelte...rom_a_family_member#1

If the house were passed to you then you would not need housing benefit when you were out of work as you would not still be paying rent to you parents - obviously you would be entitled to job seekers allowance etc but if you have no outgoings to put a roof over your head then you cannot claim for any.

Is your father not concerned about the rent in general rather than just the housing benefit or had you planned on still paying him a certain amount every month while you are working even after the deeds are passed to you?

[joko]

iggy yes i intend to continue paying rent...i view the house as still theirs until they die...it just needs to be addressed now to avoid inheritance tax - it would just be mine on paper - nothing else would change.

doc - my bro has his own...and wants mine too. my dad is a landlord and owns about 7 houses.

sara of course they know!...it is not illegal - or should my parents be expected to house me for free - at age 38?

[bednobs]

no, no way at all. If the house is yours (which is what you are suggesting) then you don't need to pay rent hence no need for housing benefit. if your parents need the income, they could just sell the house and have that as income. what you are suggesting is benefit fraud i'm afraid

[themas]

If your father owns 7 houses (presumably all rented out) I rather fail to see why the rent income from the one you occupy is so important for his income.

So far as inheritance tax is concerned, he has to live for 7 years after transferring the house to you for it to fall entirely out of his estate. So get on with it - & stop the Housing Benefit. You will not be able to get it when you own the house.

[Barmaid]

Plus if the house IS transferred to you and you continue (somehow, although I think it impossible) to pay him rent, that would be a gift with reservation of benefit and thus it would not be tax free.

[joko]

ok thanks all

themas - you are wrong, you do not know the circumstances - thats why you 'rather fail' to see it...