Deprivation of capital question.
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fateric
Community 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
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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. -
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.“This is my simple religion. No need for temples. No need for complicated philosophy. Your own mind, your own heart is the temple. Your philosophy is simple kindness.”
― Dalai Lama XIV -
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.2024 The year of the general election...the time for change is coming 💡 -
But would she get wrong for accepting said asset
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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.2024 The year of the general election...the time for change is coming 💡
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