My relative was reluctant to let the worker in, let alone discuss her finances. However, she eventually agreed to complete the forms to top up her pension, although she did not receive the full amount as her capital was £1,000 over the limit.
Since then, she has been receiving benefits. But - and this is really awkward - she has since told me she has £20,000 in an account she has not touched since goodness knows when.
We have pointed out to her that she should come clean, but she won't own up to the money. Any suggestions?
RJ, Denbighshire.
As you say, this is a difficult one although the law is very clear - what your relative has done is fraud. With a nest-egg of this size, she cannot qualify for means-tested benefits such as help with housing costs or income support. How the Benefits Agency, part of the Department of Social Security, reacts may depend on her age, mental state, and amounts wrongly paid.
In general terms, the Benefits Agency has powers to deduct from other state benefits up to a maximum weekly amount (currently £10.80) where income support fraud is admitted. It can also take unlimited amounts to recover housing benefit.
In this case, there is substantial cash for recovery so the Benefits Agency could arrange for a lump sum repayment or sue through the county court.
All of this ignores the sticky point of how to get your relative to own up to her crime. The Benefits Agency does have substantial discretion in how it pursues fraudulent payments which can be used in difficult cases such as this.
Seeing as she won't own up to the money, you are in a difficult position. When she dies, the Benefits Agency will be able to pursue a legitimate claim on her estate.
I took advantage of an offer of "free valuation" on my late father's stamp collection. As the sum quoted seemed on the low side, I checked a part of the collection against the current Stanley Gibbons catalogue only to discover the sum being offered for the whole collection was a mere 15% of the catalogue value of the part I checked. What is the best way to get a fair price for a stamp collection?
JC, Lincolnshire.
You are right to be wary. Offering "free valuations" is an old trick used by unscrupulous dealers. Unless you can travel to London, where stamp dealers are concentrated around The Strand, the best course would be to talk to a local philatelic society - your public library should have details. But be prepared for disappointment. The Stanley Gibbons catalogue shows the prices stamps sell at - not those paid for them. Dealers often base offers on one-third of catalogue value and even then may be selective.
I'm a UK citizen who has just moved back to the UK after more than four years living in Belgium. I have savings in accounts there and in the US. I am considering transferring some cash to the UK for an Isa. Will I have to pay capital gains tax on it?
JF, London.
There will be no UK tax to pay on interest for complete tax years spent abroad. But you will now have to declare interest on any remaining Belgian and US accounts in your tax return. Which accounts you decide to bring back may depend on your view on the pound's value.
Six months ago, I went to see my IFA for advice regarding investing £25,000 I had from a house sale. He was aware I had a £116,000 mortgage which I was tied into for five years but into which I could make a penalty-free repayment of 10% per year. I was advised to buy maxi Isas and unit trusts. Now I study their figures more closely I see that over 10 years, assuming 7% growth, this equates to only 3.6% after charges. Was I given poor advice?
MH, Edinburgh.
Yes. IFAs should take all your financial needs into account. In this case, the interest you will save by repaying £11,600 (10%) is likely to be greater than any investment gain - and certainly more secure. The huge reduction in return after charges suggests your IFA is basing Isa decisions on commission. Make a formal complaint to the IFA - it is possible your mortgage was just overlooked. If that does not help, go to the ombudsman.
I've just returned from South Africa after working there as a nurse for some years. I don't have a UK pension but I want to retire in five years' time. I can save £150 per month and have a £3,000 Isa. I am paying £350 a month in rent. I shall qualify for a South African pension at £400 a month. I want to move to Spain or Portugal. Should I move now or save up?
PM, Manchester.
Move now. Besides a better climate, you should be able to get well-paid work as a nurse with Spain's growing (and ageing) English speaking population. Your present rent and savings together will fund a Spanish loan for a small flat while your Isa and other savings should help with the deposit - NatWest only requires 10% upfront. It is better than wasting money on rent.
Got a problem? We want to hear about it. Get in touch with Tony Levene here at Jobs & Money and we will try to help
We welcome letters but cannot answer individually. Write to: Capital Letters, Jobs & Money, the Guardian, 119 Farringdon Road, London EC1R 3ER or email jobs.and.money@theguardian.com. Do not send original documents but do enclose a daytime phone number. Information is general and offered without any legal responsibility. Always take professional advice if in doubt.
