Providing for adult unable to work without impacting benefits?

[NinthBestOption]

DNephew is 20 and has various neurodiversities which appear to make him unemployable, particularly in the current job market. He continues to mature so there may be some hope for the future.

Im not privy to exactly what he receives in benefits, he lives with dsis and definitely gets PIP and some form of unemployment benefit or allowance.

My parents are considering their wills, both myself and dsis have said we'd rather they pass the money (maybe 100k each if not needed for care fees) directly to the DC in trust.

Would having this money in DNs name stop any means tested benefits he recieves? If so it's probably better to go to dsis so she can pay for additional things to enhance his life.

Thanks.

I believe Mencap have a dedicated service to help with exactly this sort of financial planning. I'll try and find the link, just about to get off a train!

It would stop means tested benefits which is most of them.

pip isn’t means tested but UC is.
he would lose all UC with assets over 16k

Here

@NinthBestOption it's really important that the money is placed in trust. If your DN receives disability benefits this can be a disabled trust which has some tax benefits. It could also be set up as a discretionary trust which is more flexible but without the tax advantages.
The issue is that the money can't be in his name, it has to be within the trust. The trust can then pay for anything that might support or benefit him, but any income or cash benefit passed directly to him would impact his benefits.
MENCAP host regular free online seminars on this and there is an excellent legal firm associated with these who can set up a suitable trust. It will cost about £2000 but is well worth it.
PM me if you want any more info.

I would certainly hope that someone with £100k wouldn’t get benefits

Property is a good way around this.

My brother has a flat which he owns outright; he can’t work but has a stable base at least.

Just go away. That amount of money doesn't go far these days. Of course someone with learning difficulties needs support and if family can augment the little amount he will get, good for them. Either you don't have anyone with such disabilities in your family or you are bitter because this young chap has a loving family trying to help

I see no reason he should get to keep his inheritance AND benefits. He will keep his PIP.

If you put it into a disabled persons trust fund with him as the beneficiary then it doesnt count as his money and will not stop him from getting means tested benefits.

OP didn’t say he has learning disabilities, she said “various neuro diversities” and that he may be more employable as he matures.

obviously there are a range of neuro diversity diagnoses and how they impact the individual. We have a lot in my family so I’m not unaware of the issues and challenges.

Learning difficulties?

A ND man who may well go into work in the future yet people are suggesting keeping his inheritance from him (freely) just so he can claim a pittance on UC.

What is actually wrong with people?

I would be fucking fuming if my family did this to me/my children. Being ND isn’t a reason to place his inheritance is a bloody trust

Yeah he can't have more than 6k without declaring it and if it's 16k then the claim is not valid. He would still get pip though.

My son is autistic and his grandparents have sorted something similar out. He doesn’t get it in cash and it has to be managed and used for supporting him in future (whether he is able to work or not in the future).

Tbh he may struggle to ever work and this trust will help in terms of him having a roof over his head in future, It won’t affect his benefits….he still has to live and pay bills. The most it will do is possibly pay towards a shared ownership place with carers. Or pay for a supported living space. In which case all his benefits would be taken anyway, he’d be left with pocket money.

Thank you for the help, I'll need to look into it because my parents wouldn't cope. We may well suggest they leave it to us daughters as planned and then we can do a variation on the will and put it in trust for our dcs if that looks the best route.

For the benefit of the negative posters above, this is MY and MY DSIS inheritance, we'd rather our DC (both disabled with significantly delayed development) got security from it. If it stopped DNs benefits until used up there'd be no benefit to him so my DSIS should use it for herself, and his benefits would stop when he receives his inheritance on her death.

If it's in a trust it wouldn't be considered as his capital, only the income.

https://www.scope.org.uk/advice-and-support/leaving-money-to-disabled-person-in-will-trust

@NinthBestOption people who make negative comments have no idea about the anxiety that parents/relatives of children with disabilities have about providing for their adult children once they die. Making financial provision goes some way to alleviating those anxieties.

Significantly delayed development is a bit of a drip feed. Ignore my previous reply.

It might be more useful for the money to go into a trust to purchase a property for him to live in, which not being owned by him. But definitely get financial legal advice. You’re right to note unintended consequences but there are ways of doing it.