Inheritance / trusts / benefits

Ciprico

I am writing on behalf of a friend who is severely disabled, aged mid 50s , lives in sheltered accomodation, and will be getting all the benfits avaialable, organised by the Trust who own the accomodation. She will be staying where she is for the rest of her days.

Her husband died, intestate, so all the money he left went to her by default. We accept many of her benfits have/will stop until this money is run down to the threshold. We fully accept this.

Her father died, aware that any money he left would again essentially be taken by the state so in his Will he stated she should get £25k to be put in trust. This is not a fortune, probably around £1000 per year for life, and could pay for a holiday or to visit family. We don't feel trying to preserve this is unreasonable.

We have investigated descretionary Trusts, but these seem very complicated, and lots of organisation no longer offer them. For example she already has a small amount in an NS&I descretionary Trust, but we can't add to it as the product is obsolete..

Giving the money to her siblings is being considered, on the basis that it is to be ring fenced, but this has it's own complications and issues...

We're happy to keep the money as cash and take the inflation hit, or invest in a "low risk" tracker...

Has anyone experienced this situation and found an easy, low cost solution....

poppy12345

Ciprico said:

Giving the money to her siblings is being considered, on the basis that it is to be ring fenced, but this has it's own complications and issues...

For means tested benefits, this could be classed as deprivation of capital and she will still be classed as having the money.

NedS

Ciprico said:

I am writing on behalf of a friend who is severely disabled, aged mid 50s , lives in sheltered accomodation, and will be getting all the benfits avaialable, organised by the Trust who own the accomodation. She will be staying where she is for the rest of her days.

Her husband died, intestate, so all the money he left went to her by default. We accept many of her benfits have/will stop until this money is run down to the threshold. We fully accept this.

Her father died, aware that any money he left would again essentially be taken by the state so in his Will he stated she should get £25k to be put in trust. This is not a fortune, probably around £1000 per year for life, and could pay for a holiday or to visit family. We don't feel trying to preserve this is unreasonable.

We have investigated descretionary Trusts, but these seem very complicated, and lots of organisation no longer offer them. For example she already has a small amount in an NS&I descretionary Trust, but we can't add to it as the product is obsolete..

Giving the money to her siblings is being considered, on the basis that it is to be ring fenced, but this has it's own complications and issues...

We're happy to keep the money as cash and take the inflation hit, or invest in a "low risk" tracker...

Has anyone experienced this situation and found an easy, low cost solution....

Then the executor(s) of her father's will should set up the trust as instructed.

The friend would then declare the trust to DWP as part of their capital declaration and a decision maker will look at how it is to be treated and whether or not it can be disregarded for means-tested benefit purposes.

I cannot advise on setting up a trust.

F70

Ciprico said:

I am writing on behalf of a friend who is severely disabled, aged mid 50s , lives in sheltered accomodation, and will be getting all the benfits avaialable, organised by the Trust who own the accomodation. She will be staying where she is for the rest of her days.

Her husband died, intestate, so all the money he left went to her by default. We accept many of her benfits have/will stop until this money is run down to the threshold. We fully accept this.

Her father died, aware that any money he left would again essentially be taken by the state so in his Will he stated she should get £25k to be put in trust. This is not a fortune, probably around £1000 per year for life, and could pay for a holiday or to visit family. We don't feel trying to preserve this is unreasonable.

We have investigated descretionary Trusts, but these seem very complicated, and lots of organisation no longer offer them. For example she already has a small amount in an NS&I descretionary Trust, but we can't add to it as the product is obsolete..

Giving the money to her siblings is being considered, on the basis that it is to be ring fenced, but this has it's own complications and issues...

We're happy to keep the money as cash and take the inflation hit, or invest in a "low risk" tracker...

Has anyone experienced this situation and found an easy, low cost solution....

I am confused by this statement, was she claiming means tested before this? Was it just assets and not cash as this would be jointly hers.