Jun/090
Gift of Deed not met leaves transferee in the lurch!
An elderly lady has had to face a difficult process when her deed of gift fell flat and she was not entitled to Income Support.
The elderly woman (the transferee) transferred her flat over to her daughter on the condition that the mortgage was paid off in full, and that the transferee was looked after by her daughter in the flat. The daughter has paid off the mortgage in full and has registered as the owner of the flat, but then evicted her mother form the property and held it on trust for her.
This means that the transferee is not entitled to Income Support as she had too much money to apply for it because the flat was being held in trust. If for any reason the flat were sold and the mother was claiming income support she would not be entitled to any of the proceeds from the flats sale.
This has raised a major issue because many such parents are offering their children a deed of gift such as the above case, so many will face being unable to claim benefits when the time comes they cannot practically live there.
The court ruled that because there was at least £6000 of capital in the flat and this was the relevant capital limit under regulation 45 of income support regulations 1987, the ruling was made that the court could not interfere.
Related posts:
No comments yet.
Leave a comment
No trackbacks yet.
 |
 |
