Large compo payout and ESA / DLA stuff

Ames

kingfisherblue wrote: »

It sounds like a house move would be advisable Parva. At least if you start to look now, you won't rush into making the wrong decision. You have some time to find a property to suit you.

If you currently have any adaptations to your house that were financed by a Disabled Facilities Grant, you may have to pay some or all back to the council if they put any time constraints on them. We have a wetroom, and when it was built, the council told us that if we moved within five years we would have to repay the full amount. It's worth checking, just in case.

The OP says he's in a rented house, would he have been able to get a DFG for adaptations to somewhere he could be evicted from a few monts afterwards? I don't know much about them though.

Savvy_Sue

Ames wrote: »

The OP says he's in a rented house, would he have been able to get a DFG for adaptations to somewhere he could be evicted from a few monts afterwards? I don't know much about them though.

I think sometimes you can.

kingfisherblue

Ames wrote: »

The OP says he's in a rented house, would he have been able to get a DFG for adaptations to somewhere he could be evicted from a few monts afterwards? I don't know much about them though.

Yes, I know it's possible as my friend is in a rented house and there are two safe rooms for her son (padded rooms, one upstairs and one downstairs). The bathroom is in the process of being turned into a wet room, and a lift was installed a fortnight ago.

Parva

kingfisherblue wrote: »

It sounds like a house move would be advisable Parva. At least if you start to look now, you won't rush into making the wrong decision. You have some time to find a property to suit you.

If you currently have any adaptations to your house that were financed by a Disabled Facilities Grant, you may have to pay some or all back to the council if they put any time constraints on them. We have a wetroom, and when it was built, the council told us that if we moved within five years we would have to repay the full amount. It's worth checking, just in case.

Good point, I never thought of that. I'm pretty close to 5 years since the chair lift and wetroom was done so hopefully I'll escape that one.

GreenTed

Just wondering whether the rules about repayment of a DFG would apply to the tenant or to the landlord - I've just read a post by a landlord who's worried about having to repay. We're currently having work done under a DFG (after 2-year wait), but our council letter says we have to repay if we move after 10 (not 5) years, but there are various circumstances where this can be appealed, one of which includes if you have to move for heath reasons. I'd be keen to know what advice you had about this, and the trust fund/having to make repayments, & how you got on?

poppy12345

GreenTed wrote: »

Just wondering whether the rules about repayment of a DFG would apply to the tenant or to the landlord - I've just read a post by a landlord who's worried about having to repay. We're currently having work done under a DFG (after 2-year wait), but our council letter says we have to repay if we move after 10 (not 5) years, but there are various circumstances where this can be appealed, one of which includes if you have to move for heath reasons. I'd be keen to know what advice you had about this, and the trust fund/having to make repayments, & how you got on?

Would be better if you started your own post as your question may get missed. It was July that the last person posted on this thread.

rockingbilly

Parva wrote: »

Hi guys, I was 50/50 on which board to put this on as it also qualifies for another one but here we go.

Long story short, I became severely disabled late 2011 and receive the highest rate of DLA and also ESA support group. This was as a result of medical negligence and after a near 5 year battle I am about to receive a 6 figure sum of money.

I've spoken to a financial adviser and we are going to go into more details next week regarding the specifics but I'm basically being advised to stay in my rented accommodation rather than spend a large portion of the compensation on a bungalow and to deposit say £10k into my bank account for day to day expenses and put the rest of the money into a trust fund where I would need two people to sign a cheque in order for me to withdraw money from that trust fund.

Doing the above ensures I continue to receive benefits, rather than dumping the whole sum into my bank account and giving up my benefits (I know I'd still get DLA regardless).

Before the haters jump on me, I'm not trying to milk the system! I've paid into it all of my life and as a consequence of the medical negligence that lead to this award, I have pretty much lost any chance of a 'normal' life.

I live in a rented house which is paid for by my benefits and whilst it's not ideal for me (it's a house, a bungalow would be far better), I'm still agile enough (just!) to live here for some years to come whilst preserving enough money to buy that bungalow in my later years as and when I need to.

Does anyone have any experience of such a situation? I'm not looking to take advantage of the system as it were and when I said 6 figures, we're at the lower end so I won't be becoming Alan Sugar either. My life-changing operation means that I am only ever going to find life harder in years to come (I'm 49 currently) so I'm trying to keep my options open.

Just wondered if anyone knows of Trust Funds and the possible advantages and pitfalls?

I received a substantial sum of money (also in 6 figures) years ago and was claiming a means tested benefit that also paid the mortgage (capital and interest as per the rules at the time). A PI trust was set up for me, the cost of which was met by the other side, into which all of the capital was paid into. It is simply a discretionary trust with my wife and I being the trustees and my wife, children and grandchildren living and to be born as the beneficiaries.
We part used the money to pay off the mortgage (half) and had the trust take a legal charge equal to 50% of the value of the house on a lifetime mortgage basis. Part was used to support our children and part is invested to provide an income from the trust.

So yes a PI trust is the way to go and the capital in it is totally exempt when the DWP calculate a means tested benefit.

tyler2027

just my point of view supporting buying a bungalow sooner rather than later.


Aside from whats been said re house prices increasing and buying now would maximise what you can get for your money......If you take that year to find a place in an area you like it will give you time to establish yourself with neighbours and the local area. A few years down the line you might end up with neighbours/community that may provide support in the form of keeping an eye on you, helping with gardening/diy etc...even a neighbour picking something up from the shops is a godsend in the middle of winter. Also if you have a partner, they get to establish themselves too, be it coffee round the neighbours, evening classes etc.


Moving in a few years when you might be less physically capable/active may mean being holed up in your new bungalow, knowing nobody. And its a lot for a partner to cope with...partners health declining, moving home, new area etc.


just throwing it in the mix :-)

rockingbilly

tyler2027 wrote: »

just my point of view supporting buying a bungalow sooner rather than later.


Aside from whats been said re house prices increasing and buying now would maximise what you can get for your money......If you take that year to find a place in an area you like it will give you time to establish yourself with neighbours and the local area. A few years down the line you might end up with neighbours/community that may provide support in the form of keeping an eye on you, helping with gardening/diy etc...even a neighbour picking something up from the shops is a godsend in the middle of winter. Also if you have a partner, they get to establish themselves too, be it coffee round the neighbours, evening classes etc.


Moving in a few years when you might be less physically capable/active may mean being holed up in your new bungalow, knowing nobody. And its a lot for a partner to cope with...partners health declining, moving home, new area etc.


just throwing it in the mix :-)

I agree. It is silly to have the money sitting there doing nothing - buy a property that will suit your purpose for now and in the future. It was the best thing we did. We have a large garden to the side and rear which if money is needed down the line and not needing such a large plot, we could sell it off as building land.
I would always go for the best that you can afford in the best area that you can find.
Neighbours are a godsend. I looked after mine when I was capable, now that a young couple have moved in next door, he helps me out and I help him out with advice and guidance - it works a treat.