Disability benefits and Inheritance

Albermarle

Newly_retired said:

My mother created a disabled trust for my sister who was in an assisted living home and on benefits. Her adult daughter manages it on her behalf and it provides a certain smallish sum each year ( about £1200 I think ) which she uses for outings, clothes, spectacles, new TV, gifts etc, without affecting her benefits.  Any residue ( and it is invested so as to hopefully at least maintain its value ) will be iherited by her adult chidlren when she dies. It needed to be set up via a solicitor. I think this is proobably what you are looking for.

So to confirm. The trust was set up whilst your Mother was still alive? Or was it an instruction in her will? AFAIK you can do it either way, with some pros and cons for both.

Newly_retired

As far as I recall she worded her will appropriately but after her death the actual trust was set up. Sorry to be vague. It was a while ago and I was not the executor or trustee. 

Jurgen500

Thanks again folks, this is all very helpful, much appreciated

diystarter7

Jurgen500 said:

diystarter7 said:

OP
Do you have other children or grandchildren?
If the amount you are to leave her is substantial and IMO that is anything over 50k, leave it to her as she could benefit from it if she has the capacity to do that. May want to go on hols, buy new/faster laptops/larger tv, etc

If there are no siblings/grandchildren, give it to your daughter as benefits have eligibility criteria for a reason and once she is below the threshold the benefits would kick in again. However, though thankfully I've never been on benefits/etc, I can imagine the set of the ILF again may encounter a few problems.

Have you considered a charity in part/etc?

Whatever your decision, I'm sure it will be one that you could rest your mind with.

Btw - I'm only trying to help and hope you are not offended by anything that I have posted as it is sincerely not my intention.

Hi, no offense taken at all and thanks for the input, its really appreciated! I do have 2 other children (one if which is Downs syndrome but lives at home with us) so we will have to structure the most optimal 3-way split to maintain benefits. Thought i would start with daughter #1 first as this would influence the whole split. Will check out the disabled trust option as an equal split would be over 50k

bloody nightmare tbh……..

I worked for soc services but not as a soc worker but met thousands over the years I worked with clients and completed assessments, trouble-shooting, etc etc.

What I want to say it, please get it sorted, work faster on it as the older we get the more helth risks we have.
No one knows who is going first but when one has children that lack capacity to look after themselves through serious disabilities, the sooner you sought something out the better. Saying that you may be around until you are 125 but the sooner you sort this out and you can tweak stuff as you go along the better and easier you and the family/OH will feel.

Good luck and do what you feel will most benefit your kids even if it means playing the sytem to yourr family advantage. To be clear and I'm sure you are not like this but for the sake of clarity to all that read this post I don't me lie but ensure the best is mode out of your money that you have worked hard for and paying taxes on.

Good luck