inheritance

steinson

my daughter is physically disabled i would like to make sure she is financially ok for the future, how can i do this without affecting her means tested benefits?

Horseunderwater

Set up a trust. Not sure what itis called. Others should be along to advise more.

rogerblack

steinson wrote: »

my daughter is physically disabled i would like to make sure she is financially ok for the future, how can i do this without affecting her means tested benefits?

As others have suggested - a trust.
In very brief - if she has any legal means of getting the capital, she may be treated as having it from the view of most means tested benefits.

The trust must be properly setup so that in no way can she get access to the capital.

Paying for goods and services directly from the trust is the easiest way to arrange things.

This can include utility bills, housing, holidays, ... whatever the trust can afford.

You would need to consult a solicitor to draw up the trust properly. Ideally one skilled in benefits law.

steinson

how do i find a solicitor skilled in benefits law?

Mojisola

Local support groups for disabled people may be able to recommend local solicitors who have done this work for members.

jlawrence

Thanks Horseunderwater, isn't this bordering on fraud? It's the sort of thing that MP's and such like get involved with - far too much a shade of grey for my liking. If you have the use of the capital then you should use it to live off - well that is what one poster on here told me to do with my personal injury payment and inheritance.

DomRavioli

If it is drawn up correctly, then it isn't fraud - it is a genuine way to protect assets for a disabled person, jlawrence.

rogerblack

jlawrence wrote: »

Thanks Horseunderwater, isn't this bordering on fraud? It's the sort of thing that MP's and such like get involved with - far too much a shade of grey for my liking. If you have the use of the capital then you should use it to live off - well that is what one poster on here told me to do with my personal injury payment and inheritance.

The difference is that you can control what you do with money you have.
You can't control what is done with money someone else chooses to give you.

The latter is often ignored in benefits if you have had at any point no legal way to compel access to the capital.
if it's someone else setting up a trust for you - this is likely the case.

jlawrence

DomRavioli wrote: »

If it is drawn up correctly, then it isn't fraud - it is a genuine way to protect assets for a disabled person, jlawrence.

Thanks Dom, I didn't realise that. How do they class if you are disabled or not to be able to do that? We are both disabled but aren't on any register or claim any benefits that prove it.

jlawrence

rogerblack wrote: »

The difference is that you can control what you do with money you have.
You can't control what is done with money someone else chooses to give you.

The latter is often ignored in benefits if you have had at any point no legal way to compel access to the capital.
if it's someone else setting up a trust for you - this is likely the case.

Thanks Roger, that is confusing. I understand the first bit like having a current account and using the debit card. But how can your own money that you received either through a compensation claim or an inheritance become money that isn't yours and you have no right to it? Sounds a bit iffy to me.

rogerblack

jlawrence wrote: »

Thanks Roger, that is confusing. I understand the first bit like having a current account and using the debit card. But how can your own money that you received either through a compensation claim or an inheritance become money that isn't yours and you have no right to it? Sounds a bit iffy to me.

If you have money - ever - and put it into trust - (unless it's from a personal injury to you, and done at the time of settlement ) then you are likely to be treated as still having that money - because you chose to put it beyond use.

If you are bequeathed money from your mother, and put it into trust - same applies.
You have the legal freedom to spend it on anything - it's capital.

If however, your mother chooses to set up a trust in her will to pay certain expenses for you directly, and you have no way of challenging this and getting access to the capital in the trust - then it does not count - simply as you have no access to the capital.

If you have ever had legal access to the capital - it is in general impossible to conceal it by putting it in a trust, if the purpose of that action was to obtain (more) benefit.