Discretionary Trust & Disabled Trust
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JonnycJonny
Scope Member Posts: 127 Courageous
Do these types of trust impact UC and other means tested benefits ? That is, impact on the savings / capital regulations. Cannot find a concrete answer on web.
Comments
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Whether or not they count or are disregarded will depend on the exact wording of the trusts. They should be declared and a DWP Decision Maker will have to determine whether or not a disregard applies.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1145107/admh1.pdf#page19
Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
Thank you for sign posting me to that document.
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JonnycJonny said:Do these types of trust impact UC and other means tested benefits ?
UC is a means tested benefit which affects the claim if it is deemed to it being used to reduce your capital so as to increase your benefit payments.
Without knowing anything about your circumstances it is difficult to advise.
I set up a discretionary trust using an inheritance that I did not want and felt it better for it to be made available to the children, grandchildren etc.
Effectively that type of trust cannot make any payments to me as I was the donor.
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2oldcodgers said:JonnycJonny said:Do these types of trust impact UC and other means tested benefits ?
I set up a discretionary trust using an inheritance that I did not want and felt it better for it to be made available to the children, grandchildren etc.
Effectively that type of trust cannot make any payments to me as I was the donor.
You can’t just give your money away and still be expected to claim means tested benefits.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. -
I agree that setting up a trust for others using money you inherited is deprivation of capital if you are seeking benefits for yourself.If you are asking are possible benefits for the beneficiaries of the trust then the funds may fall to be disregarded then considering their capital.Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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So if I were the beneficiary of a trust ( set up following an inheritance ) and money was used for goods / services in support of my disability the trust fund itself would be disregarded when it comes to means tested benefits ?
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JonnycJonny said:So if I were the beneficiary of a trust ( set up following an inheritance ) and money was used for goods / services in support of my disability the trust fund itself would be disregarded when it comes to means tested benefits ?calcotti said:Whether or not they count or are disregarded will depend on the exact wording of the trusts. They should be declared and a DWP Decision Maker will have to determine whether or not a disregard applies.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1145107/admh1.pdf#page19
Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
poppy123456 said:2oldcodgers said:JonnycJonny said:Do these types of trust impact UC and other means tested benefits ?
I set up a discretionary trust using an inheritance that I did not want and felt it better for it to be made available to the children, grandchildren etc.
Effectively that type of trust cannot make any payments to me as I was the donor.
You can’t just give your money away and still be expected to claim means tested benefits. -
2oldcodgers said:poppy123456 said:2oldcodgers said:JonnycJonny said:Do these types of trust impact UC and other means tested benefits ?
I set up a discretionary trust using an inheritance that I did not want and felt it better for it to be made available to the children, grandchildren etc.
Effectively that type of trust cannot make any payments to me as I was the donor.
You can’t just give your money away and still be expected to claim means tested benefits.
Then why did you comment on the thread with your story when it's completely different circumstances to what the question is for. That's misleading information.
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. -
2oldcodgers said:poppy123456 said:2oldcodgers said:JonnycJonny said:Do these types of trust impact UC and other means tested benefits ?
I set up a discretionary trust using an inheritance that I did not want and felt it better for it to be made available to the children, grandchildren etc.
Effectively that type of trust cannot make any payments to me as I was the donor.
You can’t just give your money away and still be expected to claim means tested benefits.Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
Thank you Calcotti for your input - the link was very useful. Not sure why another Member began writing on this discussion. It turns out Scope has a short page on all this. It says:
'You can put money and property into a trust for a disabled person. Trustees manage the trust. This could be:before you dieafter you die, through your will.This type of trust is good for managing:
Support with moneyRisk of financial abuse
Means testing for benefits
For now it is all hypothetical - but when it comes to probate, forewarned is forearmed.
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