Compensation payout - On benefit due to injury so Solicitor advises Ring Fencing
Comments
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they should also be aware that they may have to repay the benefits they have received prior to receiving the payout - hopefully the solicitor has accounted for this and the amount you are saying they will be receiving is in addition to the repayment of benefits
http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/z1-recovery-of-benefits-and/1.-the-law/0 -
It's a complicated area, your friend should seek expert advice, perhaps contact Enable?
Trusts and trust funds
Whether or not assets held in a trust can be disregarded as capital seems to be determined by whether the beneficiary of the trust has or can have direct access to them. If they do not, the assets of the trust will be ignored for benefit purposes.
The assets in a discretionary trust, (which do not permit the beneficiary to control the assets), are not treated as capital, however any capital that is given to the beneficiary by the trustees, will be treated as capital.
Assets of non-discretionary trusts, that is, trusts over which the beneficiary can control the assets, will be regarded as capital. There is more information about trusts at XXXXX
Where a trust fund has been set up as a result of personal injury compensation, the fund will be disregarded if it has been awarded directly to the benefit claimant. However, usually, if the compensation has been awarded to a member of the claimant's family, such as child or partner, it will be treated as capital. There is no need for the trust to be set up by a formal deed.
http://www.ownershipoptions.org.uk/html/section1/01006020.php
You could research some of the DWP guidance to its decision makers to understand how it will be treated for the purpose of means tested benefits. For example,
http://www.dwp.gov.uk/docs/hbgm-bw1-assessment-of-capital.pdf0 -
What I can't understand is why isn't the compensation being declared.
Some 10 years ago my sister was hit by a transit van as she was walking on a pavement, the driver was drunk. She suffered from horrendous injuries, she was awarded DLA, MHR, HCR, housing benefit, Council tax.
She took the driver and his insurers to court, finally after 4 years she was awarded 500,000, but before the money was released to her from her solicitors, the solicitors had to pay back all the money she had recieved from housing benefit, etc etc.
So is this solicitor who is suggesting putting it into trust, being dodgy? or just thinking of the money he will make from it?0 -
AnxiousMum wrote: »Your friend is able to volunteer 25 hours per week but not work?
I agree, I can't see the difference between 25 hours in voluntary work and 25 hours in an office. I could understand someone doing a few hours to get them back into a work pattern, but 25 is near full time!Gone ... or have I?0 -
I agree, I can't see the difference between 25 hours in voluntary work and 25 hours in an office. I could understand someone doing a few hours to get them back into a work pattern, but 25 is near full time!
i agree however am sure there will be a medical assesment looming where the OP's friend can let them know how well she is doing. I hope she has declared her voluntary work to the JCP as even although she is not getting paid for it, it still has to be declared.skintbint x
here's tae us, wha's like us - fell few and and they're a deid"
10k in 2010/£6988.30-69.88%@29/12/10, 11k in 2011/£897 07.04.11- fell by the wayside!!!
12k in 2012 - £204.00 @ 4/1/12
do not confuse me with the other skintbint who joined dec2011 - i am the original bint:rotfl:0 -
It's a complicated area, your friend should seek expert advice, perhaps contact Enable?
Trusts and trust funds
Whether or not assets held in a trust can be disregarded as capital seems to be determined by whether the beneficiary of the trust has or can have direct access to them. If they do not, the assets of the trust will be ignored for benefit purposes.
The assets in a discretionary trust, (which do not permit the beneficiary to control the assets), are not treated as capital, however any capital that is given to the beneficiary by the trustees, will be treated as capital.
Assets of non-discretionary trusts, that is, trusts over which the beneficiary can control the assets, will be regarded as capital. There is more information about trusts at XXXXX
Where a trust fund has been set up as a result of personal injury compensation, the fund will be disregarded if it has been awarded directly to the benefit claimant. However, usually, if the compensation has been awarded to a member of the claimant's family, such as child or partner, it will be treated as capital. There is no need for the trust to be set up by a formal deed.
http://www.ownershipoptions.org.uk/html/section1/01006020.php
You could research some of the DWP guidance to its decision makers to understand how it will be treated for the purpose of means tested benefits. For example,
http://www.dwp.gov.uk/docs/hbgm-bw1-assessment-of-capital.pdf
Absolutely correct!!!
Where a trust fund has been set up as a result of personal injury compensation, the fund will be disregarded if it has been awarded directly to the benefit claimant.
I received a settlement some time ago under the Criminal Injuries Compensation Scheme which ran well into 6 figures. The money is as you have described been put into a trust to help me out when and if needed. My main concern because of my age is the care home factor. They can't touch it if and when the time comes.
Yes a deduction under the Compensation Recovery rules was made and was paid over to the DWP before the money was received.
I don't have much need for the compensation due to ill health, but it will be very useful for my grandchildren later in life.
Yes please do take up proper legal advice.0 -
So "your friend" (even though you said "the solicitor is holding my money", which I'm unsure is a Freudian slip or not) is able to work 25 hours a week, has just received a huge payout, but basically wants to hide the money so they can still receive taxpayer handouts.
I see.0 -
kingfisherblue wrote: »Even if she is entitled to the compensation - and nobody has said otherwise - she may not be entitled to benefits any longer as she is over the threshold. Once she is below the threshold, she can reapply for benefits.
Also, being rude to posters who take the time to answer will not help. AnxiousMum makes very valid points. Dave may not be able to express himself as clearly as you would like, but there are many people who have difficulties with language. If you read his post slowly, you will understand what he is saying.
We've been through this before,moaning posts aren't advice or help.0 -
What I can't understand is why isn't the compensation being declared.
Some 10 years ago my sister was hit by a transit van as she was walking on a pavement, the driver was drunk. She suffered from horrendous injuries, she was awarded DLA, MHR, HCR, housing benefit, Council tax.
She took the driver and his insurers to court, finally after 4 years she was awarded 500,000, but before the money was released to her from her solicitors, the solicitors had to pay back all the money she had recieved from housing benefit, etc etc.
So is this solicitor who is suggesting putting it into trust, being dodgy? or just thinking of the money he will make from it?
Same here, I was a passenger in a car in 1992 that had an accidnet and I got a big compensation payout, the goverment got their bit before I got the money and while I dont object to the recovery of most of it I do to the recovery of DLA, I didnt want a double dip but I was still disabled and I should have kept that part of the compensation recovery.
I bought a wheelchair accessable house,
suitable car and I have used the rest to live on since, thats what the money was for.0 -
Firstly Its not that much, its over the threshold thats all. And its compensation for not earning for 2 years, it doesnt really compensate.
My friend is still unable to work, if she was she wouldnt be on benefits, She hates it! She have been volunteering at cancer research for 25 hours per week
If I want you silly comments I will ask you so jog on.
sod off and go and annoy someone else
I did have a couple of helpful remarks to make,but sorry I dont reply to idiots.:mad:0
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