my mother apparantly has too much money in savings to be able to claim any real state pension. can she simply give a lump of it to, so that she has a lower amount in savings or are there tax implications?
any help or advice would be most welcome.
State (retirement) pension is not affected by how much savings she has. You must be talking about some other means-tested benefit.
That is only partially correct.
It is true to say that everyone receives the basic allowance. However, the age related allowance is reduced if you are over the "income limit" which is £19,500 for the current year. It reduces by half of what you have over the limit until the basic rate is reached. I guess this is probably what the OP was referring to.
In message , BeeJay
In message , Tumbleweed writes
Yes, but the poster was answering the point only from a tax angle whereas the OP was, by my interpretation, asking form a 'benefits' angle, if you see what I mean.
I take it you mean her savings disqualify her from claiming Pension Credit, which is means tested. You appear to be asking can she reduce her savings, perhaps by giving some away to family members, in order that she can then qualify for Pension Credit.
As a general principle, people cannot give away money ("deprivation of capital", regulations) in order to become eligible for a means tested benefit. They are treated as still having the money (notional capital), Although it is recognised that savings will become depleted over time.
The State Retirement Pension is non-means tested but depends on the payment of National Insurance contributions. Category "A" pension is based on an individuals own contributions record. But a Category "B" pension is paid to married women or widows and is based on their spouse's contribution record.
It is worth checking whether your mother is eligible for a Category B pension, which is non-means tested (although it is taxable). You should also check how her savings and income affect her using an online benefit calculator like
Ellis
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