Hi, my name is Ros and I have a question about ESA and savings
Samueljl3
Community member Posts: 8 Listener
Hello, I need some advice, In February 2018, my Dad passed away and I was left, £81000.
I chose to put £50,000 in a trust fund for my 3 children, not children now as 21, 22 and 24 years old. I paid off my mortgage and kept under 16,000 in a building society account. Now the DWP are wanting all my bank statements from October 2017. There are obviously details around early 2018 when I did have more than £16,000.
I am worried that I will be paying for this now. Can anyone send me a lifeline please,
Ros
I chose to put £50,000 in a trust fund for my 3 children, not children now as 21, 22 and 24 years old. I paid off my mortgage and kept under 16,000 in a building society account. Now the DWP are wanting all my bank statements from October 2017. There are obviously details around early 2018 when I did have more than £16,000.
I am worried that I will be paying for this now. Can anyone send me a lifeline please,
Ros
Comments
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Sorry, Ros again, I have Multiple Sclerosis and the DWP are chasing up fr my ESA benefit
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Hi Ros and welcome to the online community here at Scope. It's lovely to meet you! How are you today?
I have moved your post to our ESA discussion board and retitled it adding what it's in relation to. This will help more people who have ESA knowledge spot your post.
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Hi and welcome,Which ESA are you receiving? Is it New style ESA, the old Contributions based or Income Related? If it's income related then savings of more than £16,000 means you're not entitled to any means tested benefits and this includes help with any rent and council tax reduction.Paying off mortgage and giving money away, including in a trust for your children are all classed as deprivation of capital.If it's New style ESA or all Contributions based then it's not affected. I suspect that at least part of it is income related because they are asking for bank statements. You will need to tell them about the money you gave away too.I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.If i see a question that i know the answer to i will try my best to help.
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Thank you, I believe it is the all ContributionsESA so I suppose I just have to send all the statements and hope for the best.
Ros -
Hopefully you're correct because you'll be amazed how many people get confused between Contributions based and Income related. May i ask how much ESA you receive per week? This will give me some idea which one it is.They don't usually ask for bank statements when claiming Contributions based because it's not means tested.I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.If i see a question that i know the answer to i will try my best to help.
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£112.05 per week it us used to be £159.65 till 13th March 2020.
I'm keen to know what you think, thanks
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Hi and welcome to the community glad you have joined us.
Poppy is the best to advise you and she will respond I just wanted to say Hi and welcome -
Thank you. I really need her help
Ros -
Hi @Samueljl3
The issue of deprivation of capital, the DWP has serious hurdles to overcome.
1. They have to prove that you acted in a “rash or excessive way, in spending your capital”.
2. You paid off your mortgage, which is an “enforceable debt”, so that cannot be defined as deprivation of capital.
3. Did you get a Trust Deed, drawn up by a solicitor, for your children?4. The DWP has also to prove the “claimant had in mind a significant operative purpose” setting up Trusts for your is no such thing.
Check out what inheritance tax is paid, by our billionaires, when they pass.
A clue is zero.
Let us know if you need further assistance.
Stay kind and be safe. -
Samueljl3 said:£112.05 per week it us used to be £159.65 till 13th March 2020.
I'm keen to know what you think, thanksThat amount doesn't suggest anything to me because that's less that Contributions based which is £113.55 per week.The £159.65 amount has at least an income related element to it. At that time were you claiming with a partner or was it a single person claim?You will need to send in the bank statements as they've asked you to. All you can do is wait for the outcome.I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.If i see a question that i know the answer to i will try my best to help. -
Hello Poppy,
I was always claiming for myself alone the The other question asked was did I set up the trust fund with a solicitor and the answer is no. I used a financial advisor that my Dad recommended before he died.
The statements are going recorded delivery this afternoon.
Thanks for your advice
Ros -
I'm afraid i can't give any further advice without knowing exactly what ESA it is that you're claiming. You'll need to wait for DWP to contact you.
I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.If i see a question that i know the answer to i will try my best to help. -
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