benefits and accident-insurance money

hamaradam

I wonder if anyone knows what steps I can take about a trust fund, or suggest the best one, my background is,: after a serious accident leaving me unable to walk, I am expecting a large insurance payout anytime now, (the other driver admitted it was his fault.) I am on benefits until I can work again which will be a long time. I am getting DLA finally paid backdated to me after being with nothing for ages. I owe most of it to family who supported me during the time I had to fight,fight and fight for DLA.

question 1. I think the injury insurance payout cheque could render me not able to qualify for benefits IF I disclosed it, BUT

question 2. If I set up some kind of a trust fund for myself, as someone suggested, could I get round it like that? as if the cheque was paid into a new bank account then the dwp would get to know - wouldn't they?

question 3. Can the DWP get to find out if you never told them or would the tax on it give the game away?

lastly, under just what circumstances could the DWP see into your account if you get one, anyway? I don't see why I should have to be penalised for an accident settlement cheque with regards to benefits especially when they took nearly two years to even give me what I qualified for in the first place...
I'd be very grateful for help re: this. TA!

jo_b_2

If you fail to declare the insurance money you receive (which will be classed as savings) then you will be making a fraudulent benefits claim. My advice would be to declare the money, anything else and you are risking prosecution.