Claim. Will this effect Income Support?

Anubis_2

Do lump sum payments in respect of wills or owning part of a property left in a will have the same 12 month disregard? Just asking because I see will related stuff posted regularily here.

It might be an idea to have a sticky thread regarding lump sums/equity while on benefits then people could be directed to it?

spikeripley

Anubis wrote: »

Do lump sum payments in respect of wills or owning part of a property left in a will have the same 12 month disregard? Just asking because I see will related stuff posted regularily here.

It might be an idea to have a sticky thread regarding lump sums/equity while on benefits then people could be directed to it?

No it does not.

dookar

getzls wrote: »

Does ahe need to tell them?

Yes she does.

The law requires her to inform the scretary of state of any change of circumstances that may affect her entitlement.

From there, the secretary of state can disregard or not as per the law

bigadaj

Alternatively declare it and spend the money if the benefit stops, then when the money runs out make another claim. Obviously too complicated.

epitome

As you can see from this page
http://www.benefitsnow.co.uk/esa/capital.asp
The value of a trust where the trust's funds come from a payment made because of personal injury and the right to receive payment from that trust are indefinitely disregarded. A lump-sum payment made because of personal injury is disregarded for 52 weeks- this is to give you sufficient time to set up a trust.
Which is a logical interpretation of the regulations, this is related to ESA but JSA has the same regulation (Reg 113) & Schedule 8, 17A, which logically has been written to allow you 52 weeks to put the money into a trust so that it can be disregarded for life.

The law would be (and is) written in a such a way so that people do not get penalised in other areas of their life if they receive financial compensation for injuy.

libriarian

The laws on personal injury trusts are not accurately detailed in this thread. Maybe that is because they have changed, I don't know but I just wanted to post this.

Apparently the 52 week disregard, is how long the funds will be disregarded for means tested benefit, such as Housing Benefit,

Yes, this is so that a trust may be set up by that time...However, according to many solicitors websites, you may still set up a trust for personal injury payments AFTER the 52 week period.

You just have to be able to clearly show that the money comes from the personal injury settlement. Because ONLY these monies can be included in the trust. So there needs to be a clear audit trail. Which means that you have to be able to show clearly that the money that you are placing in trust comes from the compensation award.

I found a website particularly helpful by a solicitor called Mark Thompson, i don't have the link so search google for his name and personal injury trusts.

I hope this is helpful.

The law is constantly changing, and this too may change in the future.

Dunroamin

Reported as Spam.

lunartick_3

I thought it was 52 weeks as well.
In 2011, I was awarded an interim payment of £3000. Then in April this year, I was given another sum of £20,000. I declared both to DWP.
I got a letter today, telling me that as of April 2014, all my IS, child Tax, HB will be stopped.
Is this because of the interim payment, kind of changing the 52 week timescale?
I was really upset - that money is for my treatment and care, not for funding a lavish lifestyle - so it has to last.
Also, I have 2 children at home who depend on me being well so I can care for them.

Can anyone advise?
I was also looking for the best suggestion of a CTF provider - they don't come cheap.

pmlindyloo

lunartick wrote: »

I thought it was 52 weeks as well.
In 2011, I was awarded an interim payment of £3000. Then in April this year, I was given another sum of £20,000. I declared both to DWP.
I got a letter today, telling me that as of April 2014, all my IS, child Tax, HB will be stopped.
Is this because of the interim payment, kind of changing the 52 week timescale?
I was really upset - that money is for my treatment and care, not for funding a lavish lifestyle - so it has to last.
Also, I have 2 children at home who depend on me being well so I can care for them.

Can anyone advise?
I was also looking for the best suggestion of a CTF provider - they don't come cheap.

It does seem that the second payment was not subject to the 52 week rule because it was set against the first payment.

See here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/251811/dmg-vol5-ch29.pdf

and scroll down to 29509 - 29510.

If you need care, would you be eligible for Personal Independence Payment?

Also, are you sure that your child tax credits have been stopped?

Did your solicitor not advise you to set up a trust for the second payment?

epitome

pmlindyloo wrote: »

Did your solicitor not advise you to set up a trust for the second payment?

Perfect question.

Sue the solicitor perhaps for malpractice.