House in trust & Benefits.

[LondonWolf]

Are they affected? And do I need to inform DWP?

That's it really. My parents have created a trust for their house and I and my children are the named beneficiaries . They still live there and I have nothing to do with the property at all. As asked above do I need to inform DWP and will it affect means tested benefits?

Many thanks for any info.

@babyroobs might be helpful as this poster is knowledgeable regarding such issues. I, however can’t help.

If it's a discretionary trust I would not have thought so, as you only have a potential right to the asset, not an entitlement.

An interest in possession trust is different but depends on the wording as you may only have a right to use the asset and not benefit from the capital. I would say that is unlikely though.

Can I ask what your parents thought the benefit was for putting their house in trust? Realistically it does squat for IHT purposes and if they are older and care is a possibility in the future, it could also be deemed a deprivation of assets from the councils perspective (if they are hoping for funded care costs).

Can I ask what your parents thought the benefit was for putting their house in trust?

I've no idea and they're not ones to welcome questioning 😁. I think this is advice they were given. That said, they're in good health. If anything I think it was likely done to obstruct the possibility of difficult individuals within the family who might have a claim, being able to do so.