Covenant question

[dobsdave]

Hello,

I am considering giving my inlaws a small covenant of say 3000 euro.
But I am just wondering if that would effect their benefits in any way.
Both over 65, living in a council house (i.e subsidised rent), no income bar the normal pension and they hold a medical card.
Any information would be appreciated.

Dave

 

[ClubMan]

subsidised rent

You'd need to be more precise about the nature of this subsidy and what qualification criteria apply to the relevant scheme.

no income bar the normal pension

Again you need to be more precise - old age non-contributory pension (means tested) or old age contributory pension (PRSI linked and not means tested) or something else?

and they hold a medical card.

The medical card is means tested for under 70s. Details available [broken link removed].

 

[Welfarite]

If it is a means tested pension, there is a good disregard before pension would be affected. A rule of thumb is that a person loses one Euro of pension for every thousand Euro capital AFTER disregard is deducted so 3000 would not affect them too much in worst case scenario, i reckon.

 

[ClubMan]

Perhaps your local Social Welfare office or might be able to outline the possible impact of such a covenant on any means tested benefits?

 

[dobsdave]

Perhaps your local Social Welfare office or might be able to outline the possible impact of such a covenant on any means tested benefits?

Ok thanks,
Thought it might have been a bit more straight-forward.

Cheers

Dave

 

[ClubMan]

Thought it might have been a bit more straight-forward.

It is - if you can post details of the specific schemes through which they are getting money at the moment and then you can check the qualifying criteria (including any means testing) that apply and see how the covenant income would affect these.