Whats the best way to leave someone on benefits money?

gcdonaldson

If your parents want to leave money to you in their wills, they might look at discretionary trusts. I and my sister are Trustees for a trust for which my brother is the beneficary. As I understand it, the money is not "owned" by my brother and doesn't count if the state wants to know about his savings. My sister and I have to agree on him recieving any capital or interest from the trust. We set this up so that he would not lose any income and housing support and partly so he would not fritter it away on motorbikes and the like. He is on a low wage (£8K year) but has been in employment for so time, which is great because at one stage we thought he would never keep a job. If you search the Mencap web-site you should see details about discretionary trusts for people with disabilities.

https://www.learningdisabilities.org.uk/html/content/discretionary_trusts.pdf

Your parents would need to consult a solicitor in drawing up their wills. The tax situation is complicated at a trust is taxed at 40% but tax can be reclaimed, but I haven't got to that stage yet as it hasn't been running for a year.

Ignore the negative comments. Prudent planning of inheritance in the end benefits society because people like my brother will be less of a drain on the state. Already, we have used the money to pay back overpayment of tax credits (£2,500) which my brother would never have been able to save up and repay, not without some real hardship.

Best wishes

Graham_Devon

Bogof_Babe wrote:

I am sure that savings in an ISA count as capital just the same as anywhere else. The only difference is that tax is not levied on ISA interest.

I too would like some more info from the OP, as it does sound like he/she wants the taxpayer to support him/her rather than having to use their own resources.

I believe benefits connected with disability are not affected by the amount of capital owned, but I don't see why the public should pay income support for someone with large reserves of funds in their own right.

This is what I was saying, though I seem to be wrong!

I wouldn't for instance want someone to have 100k in a bank account and for my tax to go to supporting them, when they don't need the support.

Now, if it's disability this is a different matter and would have no qualms about the OP having 100k in a bank account and recieving DLA. However, I would not expect them to get other certain benefits. Afterall, many many workers paying tax and paying for everything live in debt.

To the above poster. These are not prudent comments. All I can digest though from what has been said is the OP is due some money from his parents, they want to give him some (either leave it him when they pass away or give it now, im unclear on that also). The OP is saying 'Whats the best way to recieve this money, but continue recieveing all my benefits.

That in itself is a line which could be taken in many ways. I have not said 'you are commiting fraud' I have just said you could be, we need more details.

I for one, do not like benefit fraud. This either is, or isnt, either way, non of us know until we recieve more details and then we can help further.

I WOULDNT want someone on income support with a lot of money in the bank who could look after themselves.

I WOULD want someone unable to go to work because of a disability to have the money in the bank and continue to recieve their benefits.

jamesd

Hercules98141, a pension may also be an option, though the minimum age for withdrawing rises to 55 a few years from now. If I recall correctly pensions don't count even though ISAs do. Edit: Paul_Herring, I think you're right: pensions don't generally count. Should be checked though.

Hercules98141

I'm unable to work because of my epilepsy. I was suffering all these fits several in succession of one another and the consultants kept on saying i just had really bad epilepsy. Eventually me and my mum wrote to Professor Duncan (The UK's top nerological consultant) he immediately got me on a flight to London they scanned my brain via MRI and it showed I
had 2 DNET brain tumours on the right side of my brain. I then was operated on that day to remove them - I'm very lucky to be alive.
I still suffer from fits but they are alot less than what they were ( about 4-5 a day) now only 1-2. This is how i started receiving benefits.

Since then the council have given me a downstairs flat with a wet-room and I'm currently ok paying my bills etc..
But if i have more than £3000 ( somebody said it has now risen to £6000) then i have to declare it to the council.

We're not trying to commit benefit fraud. We are just trying to find a way that they can give me what they've worked hard for, without it damaging my current situation - which is not the best but liveable - and within the eyes of the law. Because if the only way is to leave it to me in a will, I'd much rather it be given to someone else like one of my uncles or aunties.

I receive incapacity benefit and disabillity living allowance.

sashacat

It shouldn't damage your current situation.It would just mean that you lived off the income generated from the capital left to you by your parents rather than living off benefits. It does sound to me as if you want to receive a large sum from your parents and keep your benefits. This can't be done legally..nor should it be done. If you don't need the benefits at this stage then you should not receive them

jamesd

gcdonaldson, thanks for that mention of discretionary trusts, it might be helpful for one or possibly eventually two relatives of mine. As well as possibly for Hercules98141.

Graham_Devon

Hercules, thanks for clearing that one up.

Right, I would talk to CAB. I personally think regardless of the amount you gain, you should still get one of the two benefits, probably DLA. I think your talking a large sum here. So if having this amount would take your benefits away from you, I would advise looking at the fund above. But it's important to talk to your CAB officer.

Hope you find a way of doing it though, as I believe you should continue recieving help. Afterall, benefits are there to help people like yourselves.

agal

[QUOTE

I receive incapacity benefit and disabillity living allowance.[/QUOTE]

Neither of which are means tested

sashacat

As far as I am aware Incapacity Benefit is means tested....at least you can be awarded the benefit and will get your NI contribution paid but you will not actually receive any money if your income is above a cetain limit. I know this because it is the case with a close relative whose affairs I manage.

missile

Getting money paid into your account will not affect either incapacity or disability living allowance, nor will any money you get as interest. I guess OP is refering to some other benefit he may be receiving?