Claim. Will this effect Income Support?

libriarian

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.

Yes. The 52 week rule does apply. And it sounds like the DWP were not aware of the fact that this money was from a personal injury. It sounds like they simply assumed this was savings, and since it took you over the limit for benefit, they stopped.


I am not sure if the 52 week rule applies just to housing benefit, or to DWP benefits also. But you can google online to find the DWP regulations. and the housing benefit regulations, regarding personal injury pay outs. These are the rules that the DWP and the councils go by, with regard to different types of income, and savings, including those from a personal injury....If you call them they may not even know, that was my experience.


However, when you set up a personal injury trust. It ringfences that money, and it is disregarded from the amount of savings that the DWP and the council use to calculate your benefit entitlement.


Find the regulations online, see for yourself. Personal injury money held in a personal injury trust is disregarded, no time limit applies once a trust fund is set up. Before one is set up, then its 52 weeks for housing benefit, and maybe also for DWP benefits.


I know I am replying to an old post, but I think the information should be accurate here, to help others in this position.

libriarian

epitome wrote: »

Perfect question.

Sue the solicitor perhaps for malpractice.

This is apparently true.
I had a similar thing happen to me. When my solicitor did not advise me to set up a personal injury trust at all. I had never even heard of a personal injury trust. I found out about this from the council. Who after disregarding it for 52 weeks, wrote to let me know that it was the end of the 52 weeks, and so the money would no longer be disregarded, unless I had a trust deed!


I spoke to a solicitor originally to set up a trust deed, and he told me this should have been advised by the solicitor at the time, and that I needed to pursue a claim for this, he said it was a straightforward claim, and that anyone who receives a Personal Injury compensation, should not only be advised by the solicitor to set up the trust, but the solicitor should get you to set it up BEFOE the very first interim payment is received by you.


In the end I got another solicitor to set it up. I was going to do it myself but it seem too complex. After the fact I realise it is actually really straightforward. And after looking at the regulations of the council, I could see that they even consider a verbal trust deed! And I did find one building society that sets up a trust account, with their OWN trust deed. albeit very basic one.


So I appreciate this comment may be slightly in jest, but it is actually good, accurate advice.


The solicitor should have advised you to set up a trust. And since they did not, the losses you incurred are a result of their error. Its that simple.

libriarian

pmlindyloo wrote: »

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?

This is one of the documents I mentioned above and it relates to how the council treat different types of capital and income.


If you scroll down you will see this part-


"Personal Injury Payments


The Law


The value of


1. a payments made because of a personal injury if held in trust AND
2. the right to receive income from the trust


are disregarded indefinitely where the payment is made as a result of an injury to either the claimant, or partner......"




Other personal injury details covered in this guide are
- the 52 week disregard. which applies to PI payments not held in trust.
- income from the capital of PI payments. And how this is treated. If I recall correctly it is treated as capital. But to be sure check for yourself.




This guide is so helpful, do have a look, if you are going to, or have received a PI payment. It IS disregarded FULLY indefinitely. BUT you must set up a personal injury trust.


They are not that complicated really. If you are a bit savvy and understand basic legal terms. You can learn about trust law from a book, and do it yourself.


Or pay a solicitor to set one up for you.


Then you just have to put the money into a joint account. With the person that you have included in the trust deed. From my experience, they don't worry too much about the type of bank account you use. It is the deed itself, that is the important thing.


Hope this info is helpful.

nannytone_2

this thread started 3 years ago and the last post was 18 months ago... sp the person seeking the advice probably resolved the issue a long time ago ( hopefully )