Inheritance protected so that benefits can still be claimed

[JustACountryMusicGirlInCowboyBoots]

Can inheritance of around £200,000 be somehow protected so that benefits can still be claimed if provision is made in a will to hold that inheritance in some kind of trust? The claimant will never work for various reasons.

Yes, that is why it cannot be taken into account for benefits as it may be that NONE of the money gets spent in the individual.

If the money is for the disabled son then it is absolutely right that it is held in trust if he does not have the capacity to make decisions for himself. The parent might be the carer but from a legal point of view unless he has power of attorney he will have little say in many aspects of the disabled person’s life. It is not as straight forward as saying that they should live off of the inheritance. Having this money at his disposal will greatly impact the disabled person from getting many sorts of support they may need and will also make him vulnerable to exploitation.

Living comfortably on benefits you say?

I'd be interested to know your definition of poverty.

If they haven’t inherited yet, certain types of trust can be used to mean they can still claim benefits - if for example they have a lifelong disability.

But he won't retire will he. He will still be a carer. I'm not sure I'm understanding you

Actually @Livelovebehappy in the UK some one living on UC with a disability, getting ESA, higher level PIP and mobility allowance is not living in poverty. There UC as a single person over 25 would be £4424.88. If they have a life long disability and can never work they get £6734 ESA per annum. They would also get PIP of £5291.04 and mobility of £3692.04. In addition they'd have their rent paid, pay no council tax, have a free bus pass, free medication, free dental care. £20,141.96 to live off. A single non disabled person working 40 hours a week on minimum wage (like millions are) earns £21,673 per annum but out of this will pay tax and NI leaving him with £19,838 after tax and NI and has to pay accommodation of £6300 and council tax of £1107 with single person discount, bus travel, dentist, any prescriptions so will be far worse off financially than a single disabled person. I know this because one of my nephew's has a life long disability and claims those benefits and his brother works in a minimum wage job for 40 hours a week and is nowhere near as well off as his disabled brother. The nephew that works 40 hours each week pays accommodation and council tax taking a huge chunk of his wage. He is left with £12,401 to live off compared to his disabled brothers £20,141.

@Thewizardbinbag Personally I think 'ringfencing' the money is a bad idea not from a moral perspective - but financial security. Benefits aren't a given, in many areas even HB isn't enough to make up the rent.
What if the dad's son dies before him - all the benefits related to being a carer would disappear and he'd be living in poverty. If the conditions of the trust to avoid 'losing benefits' are linked to the son and he can't withdraw it would be tricky. It may sound ridiculous but I know quite a few people who lived well into their 90's while their adult children died in their 50's/60's of cancer etc.

This is a stupid question to ask on a forum like this because apart from the frothers you also get a lot of rubbish advice. See a financial advisor - many offer a free 30 minute consultation, Citizens Advice can signpost.

Don't get confused by people on the internet who don't know what they're talking about.

@HongKongGarden I only said I'd have to reapply for UC, ESA and council tax support, I didn't say PIP would be effected by the inheritance. I have to reapply for PIP for him on a regular basis, inheritance or no inheritance but it is only the three I mentioned that are means tested.

OH MY FUCKING GOD... they wont have 200k what the fuck are you NOT getting????

What the fuck do you think they pay their bill with? claims to be good at maths?

While the figures are correct I think the problem here is the wage of the 'disabled person', if they are indeed that disabled requires funding the carer too. 20K is nowhere near the cost of a paid professional carer but if a family member does it then their life is restricted to that, of course they can work PT etc but it may not always be possible.

Of course there are the stories of people claiming 'depression and anxiety' and getting the highest allowances and I have no doubt some get away with it but it's not that easy, Struggled with MH issues myself but as a logical person as debilitating as it is obviously easier to fake than, say a highly autistic non-verbal adult that needs 24 hr supervision.

This!!!!!

PIP is not means tested so why would they have to come off PIP?

You can't have your cake and eat it. If it's the carer's money then of course he should lose access to means tested benefits and use that money to live. Most people working full time could only dream of 200 grand in tha bank and have no extra help.

@Blackbyrd do you know how hard it is to get awarded PIP? My dh has only ever been awarded the standard rate and he went through a hellish assessment to get that. He came out of the meeting and cried. He was awarded standard rate and I was told by the CMHT and the psychosis team to argue with them and go to a tribunal etc to get the higher rate. His award report read as if they were talking about a completely different person, they seemed to ignore his medical reports and make their own judgement from a meeting with him lasting minutes. We just couldn't face it, I couldn't put him through it again. We just accepted what we'd been awarded gratefully. We were warned that if you dare to appeal, there's always the chance they could take the award you've already been offered. For people who already deal with extreme stress on a day to day basis I just could not cope with appealing and all it entailed. I believe there are many others like us, people who are too frightened to face appeals, tribunals etc Your idea that I shouldn't get Carers allowance unless he's awarded a higher level of PIP is terrifying to me. Without carers allowance I'd have to get a full time job and I'd have to put him in a council nursing home or ask the government to provide full time carers, both of those things would cost the government far more than the pittance of carers allowance I get.

@caringcarer if you are referring to me then I repeat, I only said I'd have to come off UC, ESA and council tax support. I have to reapply for PIP on dhs behalf at regular intervals anyway, inheritance or no inheritance.

It's annoying isnt it - how people assume it's easy just to get on benefits that may I add "most" of claiments are eligible for!
I get highest new style ESA, UC, and highest rate pip for both elements.
My husband works full time and receives the carers element for me ( and rightly so)
You are of course not to feel guilty for claiming carers allowance for your husband as you are entitled.
There are so many righteous, judgemental people on this thread and elsewhere for that matter.
I've been on both ends been a paid senior carer ( so I know how hard it is) and now I'm severely disabled.
It winds me up how people can look down on people claiming benefits without knowing their situation!!

@JamieJ93 thank you. I never realised it was so hard to claim disability benefits. I cannot imagine how anyone manageds to "cheat the system". The process is rigorous and gruelling. My dh also gets higher level support group contributions based ESA, yet standard rate PIP. People have committed suicide because of the PIP process and there was a documentary on TV about it a while ago. The PIP process is soul destroying.

His Mum, my sister and his Dad my BiL look after him a lot of the time, my sister gave up her job after his accident to care for him. She does get Carers Allowance for looking after him but he now lives in semi supported accommodation paid for by UC. My sister goes each morning to help him get up, showered, dressed and breakfast. He goes by a minibus to a college course twice a week to try to relearn basic life skills. He gets taken back to his accommodation. His Mum goes over to get him dinner, so does any bits of washing or cleaning he has then drives him to her house for the evening. Then his Dad drives him back to his supported accommodation. His Dad sometimes sleeps there with him but maybe once or twice a week. My sister brings him to her house on other days and takes him out to meet a friend or to go to the shops or wherever he wants to go. He likes the cinema so she sits through films she has no interest in herself so he can see him. She helps him buy clothes. He has quite a lot of money to spend. His brother who works will sometimes go to the cinema with him but he can't really afford the tickets so his disabled brother pays for both tickets. He also takes him to McDonald's occasionally or to see a friend. I know my sister has said she will leave her house and money split between her other 2 DC and they will continue to support their now disabled sibling as best they can. She has told me he is a lot better off on benefits than his younger brother who works 40 hours a week. She said if she left disabled son money and he used it he would not be capable of putting in a claim for benefits and filling out forms.

Thanks for that. I've just booked on to one of their online seminars. It's something I worry about a lot. DD will never be able to live independently and it terrifies me what will happen to her when I'm no longer here.

I think that a vulnerable persons trust will do that.

needs to be genuinely vulnerable, and it needs trustees who you obv .. need to trust not to steal it.

You'll need to see a solicitor who specialises in discretionary trusts for those who are vulnerable and have additional needs.

I was responding to a post that claimed that depositing £200k at 6% yielded under £10,000 in interest. You seemed to be making the same mistake, and claimed too that £200k at 6% wouldn’t pay £12k in interest.

Are you now able to understand that that is wrong?

You are trying to deflect by now talking about how much they’d get once they have less than £200k, but you clearly thought that even with the full amount they’d not get £12k.

out of interest how much interest do you expect from 200k?

There are your numbers above. You claim that £200k at 6% is £9,600.

I understand that you want to pretend now that that’s not what you claimed, but you clearly did.

What are you possibly doing with your numbers to get to £9,600?

I assume you’ll refuse to answer, and just go with the insults again, but come on, you get to learn something useful here.

I’d rather not be disabled, have the ability to work and not be on a high income though, than be disabled, not have the ability to work and be on a slightly higher income.