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TOPIC: Disabled trusts re means tested benefits

Disabled trusts re means tested benefits 7 months 4 weeks ago #208978

my parents set up a Discretionary Will Trust in 2008 using solicitors

Many families set up these Discretionary trusts to ring fence and ensure any property or funds left from parents estates to a Disabled sibling is protected .

Saying that I have a Disabled Trust and I am the principal disabled beneficiary and trustee who has another trustee to run the trust

My brother and his daughter aged 12 are beneficiaries

Trust solicitors tell us as long as you do not receive any regular payments from the trust , legally should not affect means tested benefits
However the trust can pay for directly items like : a car , medical bills , holiday , clothing , a washing machine but NOT rent daily living expenses

Trust solicitors state : there is no requirement legally to notify the DWP or housing benefit re the trust as the trust funds DO NOT belong to you . They belong to the trust . However welfare benefit solicitors say “ under social security fraud act one must make disclosures !”

Welfare benefit and trust solicitors say “ the DWP use their own discretion and do NOT abide by UK law re Disabled Trusts . They are only going to look at the trust as a Discretionary Trust !

The DWP can then either view the trust as genuine or not . If not one would have to challenge DWP and local council by asking for a mandatory consideration and if not granted take the matter to tribunal . At tribunal one would be well advised to be represented by a CAB welfare advisor or in addition a Barister opinion

Has anyone one this forum ever had experience of challenging a Disabled Trust with assets ?

It seems ridiculous for these Disabled trusts to be set up for purpose of supporting a disabled life of a person in need of extra income not provided by the state

Also being a trustee and a principal beneficiary is going to cause a major problem with a deed set up even though there is another trustee .

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Disabled trusts re means tested benefits 2 weeks 9 minutes ago #220753

I am confused,. If u r on contributions based ESA in support group, didnt Gordon say there is no limit to savings u can have? Therefore can u not receive an income from the trust?

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Disabled trusts re means tested benefits 1 week 6 days ago #220777

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confusedwoman wrote: I am confused,. If u r on contributions based ESA in support group, didnt Gordon say there is no limit to savings u can have? Therefore can u not receive an income from the trust?


You have replied to a post from 7 months ago and the user did say that it was in regard to means tested benefits.

Gordon

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

Disabled trusts re means tested benefits 1 week 6 days ago #220799

Ok but could someone in ESA support grp getting contributions based and IR top up have regular or non-regular payments from a discretionary trust as long as this was money needed and used and didnt provide savings? Thanks

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Disabled trusts re means tested benefits 1 week 6 days ago #220801

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confusedwoman

So if you have an IR top-up then the Trust becomes a potential issue!

However, providing it has been set up correctly, then the Trust should not be treated as capital and any irregular payments from it should not affect your ESA(IR).

Gordon
The following user(s) said Thank You: Becca, confusedwoman

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

Disabled trusts re means tested benefits 1 week 6 days ago #220807

What about regular ones?

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