Does Compensation Count as Savings?

catenorfolk

not if he paid off the mortgage before he definitely knew he was gonna lose his job!!

alwaysonthego_2

catenorfolk wrote: »

not if he paid off the mortgage before he definitely knew he was gonna lose his job!!

Woodbine is correct!

noelphobic

tparkin wrote: »

Hi,
This is the first time ever in our married lives that we have had a reasonable amount of money stashed away, and it would be tragic if we had to spend most of it on just keeping afloat, if I can't get a new job for ages.

You've obviously had an easy life so far, if you really class that as 'tragic'. :rolleyes:

catenorfolk

so basically if someone has a bit of spare money decides to be a bit sensible and pays off some of their mortgage, then for whatever reason loses their job a bit further down the line , they are deemed to be depriving themselves of capital. How can this be if they didnt know that they were going to lose their job. (not talking about this particular thread, just in general)

shjo558

Is compensation not disregarded for a year anyway?

CoolChair

The 52 week rule starts on the day you first receive some money from the personal injury.

Money from your wife's injury can be put into a personal injury trust, not any old savings into any old sort of trust. The law specificall provides for a personal injury trust to hold personal injury payments and have them ignored for the purpose of means testing .

Providing you have a clear audit trail from when she received the award to the money in the bank today and can reasonably prove that they are one and the same then you can set up a personal injury trust today and that money will be ignored when you claim benefits.

However

Make sure the benefits you are entitled to will actually be stopped or that you wont be elligible for them because of her award before you pay to set up a trust

and

Woodbine is spot on

zzzLazyDaisy

If your wife was still earning, you probably would not be entitled to state support, as she would be required to support you.

The compensation she received is (at least in part) to cover future loss of earnings.

So that is what the money is for.

Or am I missing something?