Means tested benefits and Discretionary Trusts

I live with my parents who are in their 80s. In 2010, they wrote a will and were advised by a solicitor to leave my inheritance in a discretionary trust. The solicitor told them that the trust could be used for anything I needed/wanted.

Since then, Universal Credit has been introduced with new rules and I was rather alarmed to read this on a legal website:

“Discretionary trusts were previously disregarded for the purposes of income-based benefits. However, this is no longer the case: these trusts are increasingly being treated as deprivation of capital.”

It seems that trusts now have to include specific terms if they are not going to affect means tested benefits.

I will be one of two trustees and will be the main beneficiary and I wonder if under the new rules, I may now not be allowed to be a trustee if I need to claim means tested benefits because I will have direct access to the money in the trust.

It is so difficult to find a solicitor who knows anything about this. Are you able to give us any concrete information ?

Renaissance legal. I have attended free webinars held by this lot. They seem to have knowledge in this area. renaissancelegal.co.uk

Hi, my son is in receipt of UC, ESA, CTreduction.
I have left any inheritance he may be due in a 50% Will Trust His sister can receive her 50% outright. My son is a named beneficiary ,along with his sister and my grandchildren, (they are aware and I trust them that my son is my requested main beneficiary). This is supposedly to protect his benefits.
I asked scope they implied the trust would need to be admitted to DWP, even though my son is.not the only beneficiary. They said it depends on the wording as to whether it is counted by DWP.
Recently I have read from Sasha above such trusts are treated as deprivation of capital.
Does anyone have updated answers please?
Regards Kathleen