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Trust Funds?

AJayBee
AJayBee Member Posts: 3 Listener
Hello
We have a grandson living in a flat within a sheltered housing type scheme. There are support staff available 24/7 there. He is high functioning but on the asd spectrum a young adult over 21.
He has his disability benefits and think HB and has advocacy to help him with his finances and day to day living.
We are just updating our wills and want to leave him provision but do not want to jeopardise his benefits as they are his life security.
If we got an executor to purchase a small car and then gift it to the grandson would that affect his benefit?
If there was a small trust fund set up that allowed him a few thousand a year would the whole be calculated as the inheritance.
Any help would be appreciated we worked so hard with our lovely boy when he lived with us for 5 years just want to do right by him now.
Thank you.

Comments

  • Abdi_Scope
    Abdi_Scope Posts: 228 Pioneering

    Hi @AJayBee welcome to the community and thank you for sharing. What amazing grandparents you are. @Joanne_Scope can you help?

  • Ails
    Ails Member Posts: 2,256 Disability Gamechanger
    Hi @AJayBee and welcome to the Community.  It is nice to meet you and thank you for sharing with us.  Can I say what wonderful grandparents you are wanting to do such a big gesture for your grandson.  That is lovely!  I hope that @Joanne_Scope can be of help to you and wish you and your grandson all the very best.  Please keep in touch and let us know how you are all getting on.  Meantime, if we can be of any help//support to you then please just let us know.  :smile:
    Winner of the Scope New Volunteer Award 2019.   :)
  • chiarieds
    chiarieds Community Co-Production Group Posts: 11,063 Disability Gamechanger
    Hi @AJayBee - Welcome to this community; it's good you've joined. Whilst I don't have any answers, as others have said, perhaps @Joanne_Scope may be able to advise. I think your query is very important, as you want to give him the utmost help, so thank you for asking. My best wishes to you all. :)
  • Joanne_Alumni
    Joanne_Alumni Scope alumni Posts: 188 Pioneering
    Hi @AJayBee

    I am sorry for the delay getting back to you.

    We have some information about setting up trusts to leave money to a disabled person on our website that might be a useful staring point but you need to get legal advice before doing anything.

    Your grandson's disability benefit, Personal Independence Payment or Disability Living Allowance, would not be affected, but there could be an impact on his means tested benefits so it is very important to get advice before doing anything.

    People on means tested benefits can have up to £6000 in savings before their benefits are affected, so giving a gift of under that amount for him to buy a car should be fine providing it does not take him over the limit.

    Giving your grandson a small car should not be an issue. Personal possessions are disregarded as capital unless they have been bought to reduce savings to claim more benefits. In this case that does not seem to apply.

    If you are worried at all about this, you could ring the DWP and confirm that this is the case. You have not said which benefits he is on but contact numbers will be in his award letters.

    I hope this helps. Please get back in touch if you have any further questions.

    Joanne :)



    Joanne 
    Scope
  • emmarenshaw
    emmarenshaw Member Posts: 711 Pioneering
    Welcome to the community @AJayBee
  • AJayBee
    AJayBee Member Posts: 3 Listener
    Hi @AJayBee

    I am sorry for the delay getting back to you.

    We have some information about setting up trusts to leave money to a disabled person on our website that might be a useful staring point but you need to get legal advice before doing anything.

    Your grandson's disability benefit, Personal Independence Payment or Disability Living Allowance, would not be affected, but there could be an impact on his means tested benefits so it is very important to get advice before doing anything.

    People on means tested benefits can have up to £6000 in savings before their benefits are affected, so giving a gift of under that amount for him to buy a car should be fine providing it does not take him over the limit.

    Giving your grandson a small car should not be an issue. Personal possessions are disregarded as capital unless they have been bought to reduce savings to claim more benefits. In this case that does not seem to apply.

    If you are worried at all about this, you could ring the DWP and confirm that this is the case. You have not said which benefits he is on but contact numbers will be in his award letters.

    I hope this helps. Please get back in touch if you have any further questions.

    Joanne :)



    Thank you so much this is very helpful. 

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