Deprivation of capital question. — Scope | Disability forum
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Deprivation of capital question.

fateric
fateric Member Posts: 2 Listener
Hi, I'm on ESA. If I bought an asset for £3000 and immediately gave it to my mother, I realise it is deprivation of capital. The question is, if that asset increases in value 10 times over time am I still supposed to have the asset at £3000 or £30000?

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Listener
    You can have savings up to £6000 without it affecting your ESA claim. Anything above that has to be declared to the DWP.
    I'm not sure how to advise you regarding the asset. 
  • leeCal
    leeCal Member Posts: 4,245 Disability Gamechanger
    edited May 14
    I think it would be based on the initial transference, the value of £3000. Conversely if you bought an asset worth £3000 and it reduced in value to £2000 the sum under consideration would still be the initial £3000, if that makes sense, for £3000 is the sum you deprived yourself of.
    Whether it was actually deemed as deprivation of capital or not I couldn’t say, perhaps it would be worth asking the DWP about it.
  • mikehughescq
    mikehughescq Member Posts: 7,493 Disability Gamechanger
    fateric said:
    Hi, I'm on ESA. If I bought an asset for £3000 and immediately gave it to my mother, I realise it is deprivation of capital. The question is, if that asset increases in value 10 times over time am I still supposed to have the asset at £3000 or £30000?
    The issue is not about the amount. The issue is about intent. You clearly know that deprivation is a potential issue. The issue is therefore whether you would have done the same thing had you not known. Would you have done the same thing regardless? Was preserving your entitlement one of the reasons you moved the money on even if only one part of your reasoning? 
  • woodbine
    woodbine Community Co-Production Group Posts: 5,305 Disability Gamechanger
    The way to avoid all doubt would be to give the £3000 to your mother and let her buy the "asset" whatever it might be.
    Everything else is irrelevant unless of course you are doing this to take your savings below the relevant levels.
    It's late if that makes little sense, forgive me.
    I am a person with epilepsy not an epileptic, my illness doesn't define me.
  • fateric
    fateric Member Posts: 2 Listener
    But would she get wrong for accepting said asset 
  • woodbine
    woodbine Community Co-Production Group Posts: 5,305 Disability Gamechanger
    Unless you intentionally give money away in order to keep means tested benefits you can do what you like with your own money, even give it away. 
    I am a person with epilepsy not an epileptic, my illness doesn't define me.
  • mikehughescq
    mikehughescq Member Posts: 7,493 Disability Gamechanger
    Not quite sure what you mean but a sudden increase in capital could certainly impact her benefits depending on what they are and her current level of capital.

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