Discretionary trusts and DWP

Marble28
Marble28 Posts: 1 Newbie
Photogenic
edited 2 May at 3:48PM in Benefits & tax credits
Does anybody have recent experience of how DWP now treat discretionary trusts primarily for those on means tested benefits 

I am a trustee  for a will trust that was set to protect family members with severely compromised  health issues and unable to work. This is likely to come into effect in the next few months.

We have become aware that the rules may have changed and these may be more longer accepted.
Even our solicitor seems unclear 

Any guidance or direction to support gratefully received 

Comments

  • TimeLord1
    TimeLord1 Posts: 714 Forumite
    500 Posts Second Anniversary Photogenic Name Dropper
    Means-tested benefits consider an individual's income and capital to determine eligibility. The core question is whether the assets in a discretionary trust are treated as the beneficiary's capital.


    Generally, if a beneficiary does not have absolute entitlement to the funds in a discretionary trust, the trust assets themselves are not usually treated as the beneficiary's capital for means-testing purposes. 
  • HillStreetBlues
    HillStreetBlues Posts: 5,538 Forumite
    1,000 Posts Third Anniversary Homepage Hero Photogenic
    edited 2 May at 4:59PM
    Marble28 said:
    Does anybody have recent experience of how DWP now treat discretionary trusts primarily for those on means tested benefits 

    I am a trustee  for a will trust that was set to protect family members with severely compromised  health issues and unable to work. This is likely to come into effect in the next few months.

    We have become aware that the rules may have changed and these may be more longer accepted.
    Even our solicitor seems unclear 

    Any guidance or direction to support gratefully received 
    Full details about the Trust is needed
    Let's Be Careful Out There
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