ESA & Discretionary Trust

fz1a

I receive income based ESA (Support Group) with Disability Income Guarantee. I'm also in receipt of full Housing Benefit that covers my council flat rental.
The estate from my Mother's will has been left in a discretionary trust with the beneficiaries being myself & my 3 brothers.
The appointed trustees are 2 of my brothers.
In my Mother's Memorandum of Wishes that accompanies her will, she has left my 2 brothers who are the executors & trustees, to distribute the sums left in trust at their discretion. however, she has also stated that they should consider myself as the main beneficiary whilst I am alive and to purchase a property for me to live but that this property would be procured in their names (or in the name of the Trust) so I would have no legal ownership. Upon my death, the property would be sold and the proceeds distributed between my remaining siblings.
Apart from being provided with a rent free 'roof over my head' from the trust, I would not be receiving any other income and have no legal ownership.
I would obviously give up my council flat and cease claiming Housing Benefit but would this situation affect my ESA as this is my only income?

xylophone

my Mother's Memorandum of Wishes

The Memo of Wishes is not binding on the Trustees of the Discretionary Trust but the expectation is that they would give it careful consideration.

The Trustees of the Trust could purchase a property for the use of one of the beneficiaries - they could grant a " lifetime right to reside" in it.

The property would not belong to you - you would need to check on the Council Tax situation but it seems quite possible that some sort of discount might be available.

It does not seem to me that being granted a right to reside would impact on ESA.

tboo

xylophone wrote: »

The property would not belong to you - you would need to check on the Council Tax situation but it seems quite possible that some sort of discount might be available.

Hierarchy of council tax liability would default to the resident so single person discount can be applied.



Seems a bit mean you not benefiting from this inheritance.


Who will pay for any repairs etc on this rent free property?

fz1a

I am advised that as I will have no legal responsibility for the property, any maintenance/repair costs, etc, would be met by the trust fund.
Unlike my brothers who have all become successful, own their own properties and are financially independent, I suffered various misfortunes during my life and it was my parent's wish that I had at least somewhere to live for my remaining years. Unfortunately, I have to admit that I am not very financially responsible and therefore are accepting of the fact that the said property should remain under the control of the trust.