Can I retain my benefits with a deed of variation& inheritance in a trust managed by

Leeds_loiner

Hope somebody who has been in a similar situation can help me.My parents died a few years ago,leaving everything to me.Naturally after selling their house,my dwp benefit ESA stopped.Since then,my mental health has deteriorated considerably. I have borderline/unemotionally unstable personality disorder,where I can get paranoia,have agitated fits and take reckless risks with money.I also suffer with acute anxiety and depression.Most worryingly,my memory is deteriorating and my psychiatrist is testing me for early onset dementia.
Because of all tjis,especially my tendency to take risks with money because of the BPD,and my possibly having early onset dementia,is it possible that if a solicitor does a deed of variation with trustees controlling the inheritance,the DWP will allow me to resume claiming benefits??-the solicitor has said She has never had trouble getting the DWP to agree to it in the past,but every case is assessed individually.
Woukd the DWP allow this,or would they see it as deprivation of capital?

Leeds_loiner

I'm not sure whe there the DWP would accept this,but with possibly diminishing mental faculties and a personality disorder is this likely?

w06

No idea on your question but isn't the better solution for your solicitor or whoever to help you set up somebody else having control of your money and they provide you with enough to live on but reign in the risky spending? That way you'd only need to be claiming benefits once the inheritance has fallen below the savings limit.

Ames

It's my understanding that trust deeds only work if the will stipulated that the money should be kept in one. You can't set one up yourself and be able to claim benefits.

The cost of someone like a solicitor organising your finances so you can't access the whole amount would be unlikely to be deprivation of capital though so that could come out of the capital.

McKneff

Wouldnt you rather have a decent standard of living using your own funds rather than virtual poverty on benefits. I know which i would rather do.
And as an aside, my brother had early onset dementia at 49 years of age. It was very aggressive and took only 2 to 3 years to kill him .

xylophone

Unless your solicitor knows otherwise, my understanding is that a Deed of Variation needs to be completed within two years of the death so you appear to be out of time -


https://www.gov.uk/alter-a-will-after-a-death

even were that not the case, a DOV would not have helped you to keep means tested benefits.

http://www.dootsons.co.uk/wp-content/uploads/2015/01/Dootsons-Deeds-of-Variation-sr.pdf

However, if a beneficiary is receiving means tested benefits, a Deed
of Variation cannot be used to redirect his entitlement from the deceased’s
estate to prevent benefits being disallowed because under these
circumstances it will be seen as a gift from the beneficiary.

In the unfortunate circumstances in which you find yourself, it would appear that while you have capacity, you should grant your solicitor/a family member/trusted friend etc Power Of Attorney?

This would not restore means tested benefits but could prevent the overspending if you relinquished all control of your finances to the Attorney?

There are some benefits that are not means tested - it may be that you would become entitled at some point in the future?

I have seen comments on the board that not all solicitors are knowledgeable about means tested benefits.

sheramber

Why do you need to go back on benefits?

What happens to the money in your inheritance?

Why not continue use that money to live off as you have been doing with some restrictions on accessing it?

TELLIT01

What is required here is somebody to control the finances if the OP is unable to do so effectively on their own. That could potentially be done by a trust but more commonly it is done by having an appointee to manage their affairs.
That would not mean they are able to claim Income Related benefit, because they still have access to the funds albeit in a controlled manner.

Ames

McKneff wrote: »

Wouldnt you rather have a decent standard of living using your own funds rather than virtual poverty on benefits. I know which i would rather do.
And as an aside, my brother had early onset dementia at 49 years of age. It was very aggressive and took only 2 to 3 years to kill him .

It depends what you call a decent standard of living. When I got an inheritance I was told I could only live off it at the rate of benefits I'd been claiming. Drawing down significantly more each year could have been deprivation of capital.

Sexyscorp66

It looks like the solicitor-who is actually a partner in the probate department of a major firm.of solicitors-has either got it badly wrong-or if I'm very cynical (maybe too cynical)-probably realises this is the case but just wants the business.It would cost £750 to set it up.
In terms of nominating somebody to steward my finances,maybe a power of attorney woukd be cheaper to get.
The potential trustees have suggested using it to buy a house,to.give me some security.

TELLIT01

Ames wrote: »

It depends what you call a decent standard of living. When I got an inheritance I was told I could only live off it at the rate of benefits I'd been claiming. Drawing down significantly more each year could have been deprivation of capital.

Expenditure far above the maximum benefits available, not the amount any one person may be entitled to, may raise questions. If somebody is only in receipt of JSA but has their own house for example, couldn't possibly live on the equivalent of £73 per week if they came into an inheritance. Each case would be view on its own merits.