Discretionary trust - rules changed?

sky982 · June 2

Hi,

Does anyone know what the rules are now regarding discretionary trusts? My mother set one up for me and my brother in 2015 - at the time it was said that this would not affect means tested benefits. I am co-trustee and also beneficiary but do not receive an income from it. As far as I'm aware the house is in it as well as some savings/investments which I guess will be generating an income - although is not immediately accessible and not a large amount.

After submitting my current finances again yesterday I've been asked to go in for a further evidence appointment again, they are asking to see statements from a long list of accounts that I do not have (error?) so not sure whats going on there and also it said about telling them about any other savings such as trust - this is the first time I heard you have to declare that.

Holly_Scope · June 2

Hi @sky982 I'm afraid I don't know much about this, but it seems quite complex. It might be worth gaining some advice from a professional - maybe who set this up for you if you worked with an advisor? I've added a few tags to hopefully help other members who may have been through something similar to see it.

Rachel_Scope · June 3

Hi @sky982. I'm just trying to look into this for you. You say you're a co-trustee - are you the sole beneficiary as well?

They would want to know about the trust but it shouldn't affect your benefits unless you are using it for deprivation of capital or are paying yourself money from it. You said you're not receiving an income from it so it should be fine. They just need to have the details of all accounts.

Hope that puts your mind at ease.

sky982 · June 4

Hi, thank you both.

I told them about it and they didn't ask any more questions 🤷‍♀️

Discretionary trust - rules changed?

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