I am representing a Universal Credit claimant who may receive a lump sum payment from an ACAS COT3 settlement for unfair dismissal. Would this payment be treated by the DWP as capital (savings)? If so, would it be possible to put the payment into a personal trust fund to protect it from being taken into assessment for Universal Credit?
Generally no for both questions but you will need to look in detail at the guidance below to see if there are any qualifying factors. If the purpose of the creation of the trust is deprivation of capital in order to claim Benefits this will not work but if it is so the trustees can supervise the finances of a severely disabled person it may do. assets.publishing.service.gov.uk/media/6...b2e217/dmg-ch-52.pdf
