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Investment portfolio - capital can be realised by client?
Unusal one as don’t usually get any like this. Client in v poor mental health. Living in home owned by father, who has also set up an ‘investment portfollio’ last valued at c £56K. It yields an income every 3 months which it is estimated will be worth over £2k per year (subject to market performance), so the income would not rule out an ir-ESA claim. I have seen 2 valuation reports which are in my client’s name, and seen nothing to suggest the investment was set up in trust. I am dealing with client’s mother (seperated from his father) who is upset that the investment could stop her son claiming ir-ESA, esoecially as she has had to give him some financial support over recent years. (Client now gets PIP, both components at enhanced rate).
1) I’m assuming that as the investment is not held in trust that the client could realise the capital value of the investment and therefore would be deemed to own capital of c £56K. I’ve zero idea how these investments work in practice (eg can they be sold any time the investor wishes to?) - does anyone else know?
2) The client’s mother has an idea that his father could get the investment converted so it is held in trust. If that’s possible to do, I assume there’s a risk the client could be held to have intentionally deperived himself of the capital?
Grateful for any advice.
If it is available capital then the income doesn’t matter, the capital value is enough to extinguish any entitlement to income -related ESA. In any event the income would be irrelevant as it would be the tariff income that counted.
Who is the beneficial owner of the portfolio?
If it is available capital then the income doesn’t matter, the capital value is enough to extinguish any entitlement to income -related ESA. In any event the income would be irrelevant as it would be the tariff income that counted.
Who is the beneficial owner of the portfolio?
Hi Gareth. I haven’t spoken to the client’s father (who set up the investment), only his mother. As far as I know the beneficial owner - if you mean who is the income paid to - is my client.
I’m not sure how tariff income would come into play as the capital value of the investment is (currently) c. £56K?
I think your starting point - if it is available capital - is the bit I’m not sure about. Maybe I can only clarify that by asking the investment company.