Moving house - would a family member's gift affect my LCWRA if it goes through a solicitor?

lottiemalins90

We currently own our own house (mortgaged) I get LCWRA and high rate disability for 2 of our 3 children. We are looking to sell our home and move in to a bigger house with a family member gifting us £100,000 towards it which will go straight into the house all through the solicitors so the money wouldn’t touch our bank. How would this work being on UC? The house would be solely in mine and my husbands name. The reason we want to do this is for extra support for our family at home. Thank you

MW123

@lottiemalins90

From what you have described, the £100,000 gift from your family member will be paid directly to your solicitor for the house purchase and will not pass through your own bank account. That is helpful, but it is still important to understand how the DWP may view the funds while they are being held.

When solicitors hold money for clients, it is placed in a client account, which is legally separate from the solicitor’s own funds. However, the solicitor must record whose money it is, known as the beneficial owner. So even though the funds sit in the solicitor’s account, they still legally belong to the person they are held for.

If your solicitor holds the £100,000 on your behalf, the DWP could temporarily treat it as your capital until it is used to buy your new home. Once the purchase is complete, the money becomes part of your main home, which is normally disregarded as capital for UC. However, because DWP decisions can vary, it is safest to get their position in writing before completion.

Your solicitor, and your mortgage lender if you have one, will usually require a gifted deposit letter from your relative confirming that the money is a genuine, unconditional gift, that no repayment is expected, and that your relative will have no legal or financial interest in the property. This documentation is essential for both legal and regulatory reasons.

To prevent any confusion or misinterpretation, it is strongly advisable to inform the DWP in writing before completion. This ensures they are fully aware of your intentions and gives you documented reassurance.