I don't mean to sound ungrateful. Is there a way to protect my LCWRA if I receive a large lump sum?

Jamanga

I really don't mean to sound ungrateful but I'm receiving a large lump sum payment over £16,000 but it will mean my benefits stop.

I can't really do anything with the money as it isn't enough to buy a house or do anything with and I have to be careful how I spend it so I don't get in trouble with DWP, but then when I'm eligible for benefits again after a couple of months, I will need to start the whole process of LCWRA and work capability again so will end up worse off.

Is there a way to protect my LCWRA or pass the money on to my children instead? 

bg844

Could a trust potentially not be looked in to? If the recipient of this money is you then it could be seen as deprivation of capital. Also it’s 6 months after a UC claim is closed that you can re-apply and have previous elements protected.

poppy123456

bg844 said:

Could a trust potentially not be looked in to?

That will depend where the money is from. Setting up a trust fund can potentially be classed as deprivation of capital.

Jamanga said:

Is there a way to protect my LCWRA or pass the money on to my children instead? 

You can do this but it will be classed as deprivation of capital and you'll still be classed as having the money and your UC will still end.

As you're claiming UC do you have any debts that need to be paid? Paying off debts are not classed as deprivation of capital. Although you'll still need to report the changes when the money goes into your bank.

Entitlement to UC is based on circumstances on the last day of your assessment period.

janer1967

Just curious if the lump sum is related to back pay for benefits then it will be disregarded for 12 months 

leeCal

As long as they’re needed home improvements are ok, ie double glazing, proper functioning kitchen etc, certainly this was my experience anyway.

bg844

Thanks Poppy, I was curious to see if they could possibly benefit from something such as personal injury trust fund.

I agree with leeCal. When my cousin got a payout she made major well needed home improvements and kept the receipts. The DM agreed it was not deprivation of capital but she definitely thinks she was lucky with that one.

[Deleted User]

I inherited £40,000 about 5 years ago and I lost my ESA claim, I made the money last 2.5 years and I then had to reclaim.  Luckily for me I  ended up being added to my new partner's ESA claim because he is Epileptic, so never had to bother with a medical assessment. Although we both have disabilities, only he gets the disability componants and Support Group( I can't be bothered to go through assessment process). And I get PIP which he doesn't. I can understand how frustrating it would be to have to go through the whole assessment period again from scratch.