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Is the receipt of incapacity benefit and DLA means tested.

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viotrax | 12:25 Sun 23rd Nov 2008 | Personal Finance
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After loosing my right leg, use of left leg and right arm in 1999 I have been getting both of these allowances. I f my Mother signs part of her house over to me and gives also some cash to avoid IHT. Will I loose either of these allowances ?? any help appreciated.
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No - to a certain extent.

IB in NOT means tested - you can have �1m in the bank and still be entitled to it. However, if you are in receipt of a private pension, you will lose some IB if it is above a certain amount.

DLA is not means tested.

Be aware that if your mother needs nursing care then she could be considered to have 'deliberately wasted assets' and get the money back. If she dies within 7 years, IHT may also be payable.
If you started to claim IB in 1999 then there is no need to worry about any deductions for a occupational/personal pension. This comes into effect if you started to claim after april 2001.

As Ethel says, your mother handing over cash and half the house will only effect her benefits.
if you've been claiming IB for that long, you need to check whether there is an element of Income Support. many people receive the 2 together, or Income Support paid as IB, and don't even realise it.

it would definitely affect any Income Support you might receive.
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Many thanks to all.

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