Personal Injury Trust and ISA problem

thomas2014

I was awarded Personal Injury damages, which I put into a Personal Injury Trust in 2012. I recently took £15,000 out of it and put it into an ISA. Will this affect my Housing Benefit?

Your_Hero

Total savings need to be below £16,000 in order to be eligible for housing benefit (as well as other criteria). As the money is in an ISA now in your name, it would count towards this £16,000 capital limit. This alone should not affect your housing benefit but it depends how much else you have.

xylophone

I was awarded Personal Injury damages, which I put into a Personal Injury Trust in 2012. I recently took £15,000 out of it and put it into an ISA. Will this affect my Housing Benefit?

Possibly? Try the Benefits Board.

http://www.asb-law.com/__data/assets/pdf_file/0015/5802/vp_guide_personal_injury_vulnerable.PDF


"You still need to be aware of certain financial limits in
respect of any benefits you are claiming or the cost of
care when drawing cash from the Trust "

Surreyboy

I would have thought that it would do. The ISA protects you from tax, not benefits. The trust protects your benefits position. As I understand it, once your capital goes above £6,000, your eligibility for benefits starts to be affected (ie you might start to be entitled to less). Once you above £16,000, you lose the eligibility altogether.

Surreyboy

see http://www.disabilityrightsuk.org/housing-benefit