Disabled Persons Trust

JonnycJonny
JonnycJonny Scope Member Posts: 253 Empowering
in Benefits and income
Can anyone explain in clear simple terms the advantages of a Disabled Person's Trust ? I cannot get a definitive answer anywhere on the web. Some sites even suggest that there are no longer any advantages to having one.

I am aware that receiving a regular unearned income from a trust would impact all means tested benefits but would ad hoc payments  from the trust to buy things needed by the disabled person affect their means tested benefits such as UC or would it be disregarded for capital / savings purposes ? 

Perhaps there's a good up to date web link someone can provide me that explains everything succinctly for the layman.


Comments

  • Albus_Alumni
    Albus_Alumni Scope alumni Posts: 11,423 Championing
    Hi there @JonnycJonny it seems to be a bit of a problem getting all correct info here, but we have a page dedicated to Disabled Persons trusts here if you wanted to have a read? I'm hoping the community can offer more support too. :) 
  • JonnycJonny
    JonnycJonny Scope Member Posts: 253 Empowering
    Thank you. I hope someone will offer me some clarity or point me in the direction of a web site with all the up to date salient facts. The Scope page isn't detailed enough unfortunately.
  • JonnycJonny
    JonnycJonny Scope Member Posts: 253 Empowering
    Digging deeper ( solicitor pages ) - combined with the basics on the Scope page - things have become clearer - now I am much better prepared to discuss this delicate matter with a member of the family. 

    Best wishes 


  • surfygoose
    surfygoose Community Member Posts: 543 Empowering
    I answered on a different person’s thread today about my mum and dad setting up a disabled persons trust for me. I don’t know how to link to that post so will paste my answers I put in case it helps:

    My parents recently did that and set up the trust for me. They went to a solicitor. They asked at the local solicitor for the person who specialises in disabled people trust fund. The solicitor did do a video call with me. He said I didn’t have to talk to him but that he likes it if he gets to meet the person. It wasn’t scary. He only asked me about what things I like doing and what is important to me. I told him I like to always have a phone to stay in touch with my friends and that although some of the furniture and equipment I need is funded, I might like my own money to be spent to get something that looks nicer. He had already asked my parents those things as well, for instance like they’d told him I often think I might like to go on holiday but that it’s usually a waste of money because I get anxious and won’t go, so they told him I might be better having the money spent on day trips. Mum and dad said it was quite simple to set up because there is already a power of attorney in place for me so the people that have the power of attorney for me agreed to be trustees for the trust fund. So it was explained to me that it would work that after mum and dad are gone, if I needed something or wanted something, I should phone one of my trustees and say for example that I need new clothes and they would decide if that’s a wise thing to spend money on, then they would contact the solicitor and he would release the money to buy me what I asked for. I think it cost maybe £1500 or £2000 for my parents to set it up. I can’t remember. I know they said it was easier because they already had a Will in place and powers of attorney set up. Also the meeting they first had with the solicitor, just to learn about it all, he did for free.

    I forgot to say, the solicitor did tell my parents that if they hadn’t have had anyone to name as trustees, or if my trustees had to back out or passed away before me, then the solicitors can put trustees in place themselves. It’s just that those trustees would not know the person so well. They would still do their best to act in the person’s best interests though. It’s just if you do have people you know and trust to be trustees then they know best what things you might want or need. Either way, the main solicitor keeps an eye to check that everything is being done properly. The solicitor mum and dad spoke to told them that he went in person and checked at a care home where someone had asked to buy a new chair for his bedroom, and he found that it had been put in the communal area and everyone was sitting in it. The solicitor told the home that was misuse of the trust money and the chair got moved in to the person’s room like they had wanted, so it does sound like good protection having the trust fund.
  • JonnycJonny
    JonnycJonny Scope Member Posts: 253 Empowering
    Thank you both for your input - very much appreciated.  I will think about it all very carefully and weigh up the pros and cons before taking steps.

    Best wishes 
  • PennyP
    PennyP Community Member Posts: 1 Listener

    How can trustees 'use funds to pay for goods and services that the beneficiary needs without affecting their benefits' to quote @MW123 above? I am a trustee for my disabled sister's disability trust (set up by my late parents) and it seems the only way to get money out is to pay it to her, which then affects her benefits. Is there another way? What do you have in mind when you say that you can use funds to buy goods and services without affecting benefits? Thank you.

    Penny

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