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trust fund and esa

richardathome
richardathome Posts: 4 Newbie
in Benefits & tax credits
My brother and I are trustees of a trust fund that holds money for me. I am currently on ESA income-related. He will not release the money unless it is to buy a house or make improvements to my current house. I am planning to sell my house and buy a new house using the money in the trust fund. I am not breaking any rules, am I?

Comments

  • TELLIT01
    TELLIT01 Posts: 18,612 Forumite
    Part of the Furniture 10,000 Posts Name Dropper PPI Party Pooper
    If you can't access the money without the other trustee's agreement there is no problem with the content of the trust fund. If you sell your house with the intention of purchasing another, the money from the sale can be disregarded for a period of 6 months (longer at the discretion of a Decision Maker). You are not breaking any rules.
  • Mojisola
    Mojisola Posts: 35,574 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    richardathome wrote: »
    My brother and I are trustees of a trust fund that holds money for me. I am currently on ESA income-related. He will not release the money unless it is to buy a house or make improvements to my current house. I am planning to sell my house and buy a new house using the money in the trust fund. I am not breaking any rules, am I?

    Will the trust fund money be added to what you get from your house or are you keeping that as cash and using the fund to buy a new house?
  • richardathome
    richardathome Posts: 4 Newbie
    I will use the trust fund to add to what I get from selling my house to afford the new house.
  • Mojisola
    Mojisola Posts: 35,574 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    TELLIT01 wrote: »
    If you can't access the money without the other trustee's agreement there is no problem with the content of the trust fund. If you sell your house with the intention of purchasing another, the money from the sale can be disregarded for a period of 6 months (longer at the discretion of a Decision Maker). You are not breaking any rules.
    richardathome wrote: »
    I will use the trust fund to add to what I get from selling my house to afford the new house.

    Then TELLIT01's post is spot-on.
  • tomtom256
    tomtom256 Posts: 2,256 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I though it depended on the type of trust fund, as only certain ones are ignored as capital/savings under benefit legislation.

    I thought personal injury type ones where ignored and normally the receipient isn't a trustee of those.
  • richardathome
    richardathome Posts: 4 Newbie
    It is a discretionary trust
This discussion has been closed.
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