Trust fund/ inheritance

happy_dog

I’m on UC with the LCW component and also receive housing benefit.  I do manage to work remotely on a part time basis but am not well enough mentally or physically to work full time.

My parents are elderly and are currently sorting out their financial affairs.  They would like to leave half of their estate between my sister and I and I would like some advice on how to deal with this issue.  Is there anyone who can provide me with some good financial knowledge on this matter?  Obviously, I still want to be able to claim benefits. Thanks.

Rosie_Scope

Hi @happy_dog welcome to the community. Hope you're doing well today

Unfortunately for the means tested benefits, I don't think there aren't many ways around this kind of thing as there are limits on how much you can own and still be eligible. If you came into money, it's likely that the DWP would expect you to live off this instead until you're back under the limits.

You could perhaps try contacting Citizens Advice to see if they can advise whether there would be anything you could do. Or Turn2Us also have an advice finder, there might be someone local who could offer some impartial legal advice too.

Do you think you would be eligible for PIP? 

poppy123456

Yes it’s possible for any inheritance to be put into a trust fund and it won’t affect any means tested benefits. 

However, this will need to be done before they pass away and this would need to be included in their will. I can’t give you any specific advice regarding this because I’m no expert. I would think the best place for advice would be a solicitor. There’s some information here https://www.mencap.org.uk/sites/default/files/2020-05/MTC_booklet_WEB.pdf

Rosie_Scope

I didn't know that, thanks for correcting me, Poppy! 

I think getting some legal advice is probably a good shout to make sure everything is done properly. Hope you're able to get it sorted @happy_dog

happy_dog

@poppy123456 This is helpful advice, thank you.

MW123

@happy_dog

Poppy as usual is correct and here is something your parents might want to consider. In cases where individuals designated as beneficiary in a will are reliant on means-tested benefits, the individual creating the will has the choice to set the terms using a discretionary trust. This choice must be carried out by the testator and cannot be applied retroactively by a beneficiary receiving means-tested benefits. Any attempts to alter the distribution of the bequest for personal advantage would be considered a deliberate act of deprivation. 

Generally, when a beneficiary is eligible for means-tested benefits, the trustees of the discretionary trust exercise their discretion with funds. Rather than giving lump sums or regular income, the funds are allocated to enhance the beneficiary's quality of life. This could involve experiences like holidays, acquiring a new vehicle, or making home improvements, aiming to improve the beneficiary's overall well-being rather than fulfilling their daily needs. Your parents should consult with their solicitor, as they possess all the pertinent details about your parent's estate and are in the optimal position to provide guidance.

happy_dog

Rosie_Scope said:

You could perhaps try contacting Citizens Advice to see if they can advise whether there would be anything you could do. Or Turn2Us also have an advice finder, there might be someone local who could offer some impartial legal advice too.

Do you think you would be eligible for PIP? 

Hi Rosie_Scope

Thanks for your comment.  CAB haven't been able to give me alot of advice but I haven't tried Turn2Us yet so I'll contact them.

I didn't score enough points for PIP unfortunately.