Help - elderly, disabled parents - benefits affected by trust for grandchildren

sarah759365

Hi

Please forgive me if my terminology is wrong, I've fortunately never needed any benefits.

My parents are 75.  Up until a year ago my dad was still working.  He had a major stroke and a leg amputation and has just come home from hospital after 9 months.   My mum and dad have less than £15,000 in savings and live in social housing (but pay full rent).  They've never claimed any benefits but recently started to claim attendance allowance.   They are really struggling financially as had expected my dad to still be working for a couple more years, and have spent quite a lot on modifications for dad to come home and taxis to and from the hospital for months (mum also has limited mobility).

A benefits advisor came to assess them today as she thought they were entitled to much more including pension credit and housing benefit and at the end of the assessment it was looking really positive.  However, her final question was if they had any money in trust and they declared that yes, when my niece and nephew were born (11 years ago), they put £6000 each away in trust for them.   
The benefits advisor said that this means they are now not entitled to anything other than attendance allowance.  This seems really unfair as the money is in trust for their grandchildren, it's not sitting there for them to spend.    Can anyone advise if this is definitely the case or if there is any point in challenging this?

Thanks so much

elsien

What do they mean when they say the money is in trust for the grandchildren?
Has it been set up properly or is it in your parents names but in their head it’s earmarked for the grandchildren? 

Spoonie_Turtle

What's the level of their (other) savings?

Does your mum claim Attendance Allowance too, and/or Carers Allowance (probably wouldn't be paid it but to establish an underlying entitlement)?

There is no hard limit for savings for Pension Credit, just so you know.  It depends what their maximum entitlement would be, including any premiums, their current income, and whether the deduction for savings above £10,000 would be higher than the difference between their income and the Pension Credit threshold for their situation.

HillStreetBlues

Both the above questions are important.
But what I can say if the PC was worked out to be above £24 per week before the Trust , then even with the Trust there would be some entitlement (and by answering the above question will find out if the Trust actually matters..

Grumpy_chap

sarah759365 said:

Hi

Please forgive me if my terminology is wrong, I've fortunately never needed any benefits.

My parents are 75.  Up until a year ago my dad was still working.  He had a major stroke and a leg amputation and has just come home from hospital after 9 months.   My mum and dad have less than £15,000 in savings and live in social housing (but pay full rent).  They've never claimed any benefits but recently started to claim attendance allowance.   They are really struggling financially as had expected my dad to still be working for a couple more years, and have spent quite a lot on modifications for dad to come home and taxis to and from the hospital for months (mum also has limited mobility).

A benefits advisor came to assess them today as she thought they were entitled to much more including pension credit and housing benefit and at the end of the assessment it was looking really positive.  However, her final question was if they had any money in trust and they declared that yes, when my niece and nephew were born (11 years ago), they put £6000 each away in trust for them.   
The benefits advisor said that this means they are now not entitled to anything other than attendance allowance.  This seems really unfair as the money is in trust for their grandchildren, it's not sitting there for them to spend.    Can anyone advise if this is definitely the case or if there is any point in challenging this?

Thanks so much

Assuming that the Trust for the Grandchildren has been formally set up as such, is that what the Advisor really meant / referred to when asking "if they had any money in Trust"?

The Trust for the Grandchildren will not benefit the Grandparents.

Could the Advisor have been referring to any money in Trust that would be to the benefit of the Grandparents?  The most common would be pension and I wonder whether the query was really around whether there is any pension lump sum or income that is, or could be available, to the Grandparents.  If there is the possibility to access pension lump sum or income that is not being accessed, that would seem to be a valid query and consideration in the assessment of benefits to which the Grandparents may be entitled.

freesha

Is is actually in trust? Or just in an account and 'earmarked' for the GC?