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Property in Trust

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5 years 1 month ago #227813 by King_Drax_I
Property in Trust was created by King_Drax_I
In the ESA application form, Q16 asks if the applicant holds any money property in trust.

I am considering making my house over to myself and my three adult children so that the house is held in a trust owned by the four of us.

What effect would that have on any ESA benefits? I ask because if the house is in trust, then it does not belong to any one of us but instead to all four of us as trustees, so the asset would not belong to the applicant anyway. Or is it more to do with income gained from that property (of which there would be none as we live here with no lodgers or anything).

And as a side issue, surely any money held in trust, again, does not belong to the trustee indivivually but to the trust as a whole. So why do the DWP want to know about money held in trust?

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5 years 1 month ago #227828 by Gordon
Replied by Gordon on topic Property in Trust
Drax

I cannot give you a definitive answer, it will depend on the terms of the trust so you need to get both trained welfare advice and proper legal advice.

Property and money invested in a trust may be considered as capital and reduce or even prevent you from claiming Mean Tested benefits such as Income Related ESA and Universal Credit.

A properly set up trust should avoid this although the house that you live in should be disregarded as capital anyway.

Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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