Would this be classed as an equity release scheme?
A relative aged 66 has no assets other than his house which is wholly owned and worth £150,000. I plan to gift him £500 per month. If he gifts me a share of the house, perhaps every 2 years, to compensate me in full - does this constitute an Equity Release Scheme which would impact his Pension Credit, etc?
Arthur Weller Replies:
Any buyer and seller can claim that they are 'gifting' to each other, and that nothing commercial has taken place, but the reality is that a sale has happened.
It sounds to me that this is applicable to your scenario, and that there is either a sale here, or an Equity Release Scheme. Since calculation of Pension Credit takes into account the amount of capital the individual has over £10,000, it could impact on his entitlement to Pension Credit.
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