Assets v Means Testing

dunstonh

With profits bond would qualify. Which is fine for legacy business. Modern business would be in a unit linked life assurance bond. I'm not a big fan of distribution funds but they would also qualify within the life assurance bond wrapper.

bill_on_line

Extract fom Department of works pensions/DWP desision makers guide/DMG Volume 5 page 624

It appears to give quite vage defination for what qualifies as life assurance broader than just investment bonds or endowments.

Bill

"Capital disregarded indefinitely 29404 29407
Vol 5 Amendment 15 February 2005

Life insurance policies

The law

29404 The surrender value of a life insurance policy still in force is disregarded
indefinitely1.
1 JSA Regs, Sch 8, para 20; IS (Gen) Regs, Sch 10, para 15

Meaning of life insurance policy
29405 Life insurance policy means a written document which says a payment of money is
made
1. on death (but not one which says payment is made only if the death is
accidental) or
2. if death happens
2.1 in certain circumstances or
2.2 during the period a person has agreed to pay premiums1.
1 JSA Regs, reg 1(3); IS (Gen) Regs, reg 2(1)

Investments which include life insurance
29406 Investments which include some life insurance are disregarded indefinitely if the
agreement states how payment on death is worked out. It does not matter whether
the amount paid on death is
1. more than or
2. equal to or
3. less than
the amount the person would get if the investment is surrendered the day before the
date of death1.
1 R(IS) 7/98"

EdInvestor

What pensions are you and your spouse entitled to? How much pension credit might you get (if any)? What interest or other income and capital gains might you earn on your capital? What is your tax position and that of your spouse?

Do be careful that in the process of attempting to get these"free" benefits you don't end up worse off, because of paying fees and charges to those who try to "help" you.

The CAB is the place to go to get a full understanding of the benefits system.

wotsthat

Current thoughts are to put savings in daughters name as a 'gift' (think you can do about £6 or 7k per year). Not sure what to do about the value of the property!! Contemplating buying a smaller property in the UK and with the residue, buy a property somewhere in the sun (At the age where I hate the Winter months!!!)

It's a strange old world!

On the one hand you've enough money to buy a nice place in the sun and relax a little but on the other you're moaning about not being entitled to benefits.

Surely it would be less stressful, and more satisfying, to spend the next five years building sufficient cash to escape means testing rather than planning to be just under.