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Capital question
Not really an ESA query as such, but it is the benefit affected by the decision to take certain capital into account.
Situation is - client received a huge amount of compensation for medical negligence. The compensation was ignored as capital, the DWP accepting that it was held in trust.
That Deputy was discharged after a very large amount of the compensation had been spent, allegedly by the trustee and not for the benefit of the beneficiary. The local authority was then appointed as Deputy. The first Deputy had paid a bond of £25,000 into the Court of Protection, which was then released by the court to the current Deputy.
The £25,000 has been taken into account as capital and the client’s means tested benefits stopped. The Deputy appealed. The DMs response states that the client “appears to be the beneficial owner”.
I have not been able to find anything in the legislation which deals with the status of such funds, nor any case law on the point so I think they may be correct. But I’m loath to let it go as the unfortunate client has then been doubly disadvantaged by the alleged misdoing of the original deputy.
Any ideas?
[ Edited: 25 Jan 2016 at 03:22 pm by Rosie W ]Your client has been stitched up by best intentions… Personal Injury trusts are disregarded but once that transferred to the CoP, the PI trust dissolved and the CoP released the bond then it falls to be assessed as your client’s capital.
It might be worth a word with Frenkel Topping http://www.rightsnet.org.uk/jobs/welfare-benefits-caseworker23 who specialise in PI trusts as they might be able to assist. They’ve been of assistance to a couple of my punters.
[ Edited: 26 Jan 2016 at 10:57 am by Dan_Manville ]second the referral to Frenkel Topping, who should also be able to recommend a firm who will/should be able to sort something out on this via the CoP. and have the police been involved? sounds like theft.
the bond, as I understood it (being a Deputy for my mother) is an insurance policy to pay out if the deputy gets it all wrong. FT will be able to advise about that also. if I am right it should surely have paid out what was stolen? mmmmm
Thanks, both. Not sure what your suggestion re Frenkel Topping is about, sorry. Do you mean putting the £25,000 into some form of trust? Wouldn’t that be deprivation?
Thanks, both. Not sure what your suggestion re Frenkel Topping is about, sorry. Do you mean putting the £25,000 into some form of trust? Wouldn’t that be deprivation?
It’s excluded from the deprivation rules if it’s intended to go into a PI trust.
Thanks, both. Not sure what your suggestion re Frenkel Topping is about, sorry. Do you mean putting the £25,000 into some form of trust? Wouldn’t that be deprivation?
I mean, they’ll be able to point you/your client in the direction of what if anything can be done to recover the money, and hopefully put it back, by way of referring you to a solicitor who might be able to assist.
the other point that occurs is, if the defalcating deputy was a lay deputy, what on earth happened to the OPG’s oversight? we are supposed to file accounts every year showing what has been spent and why etc, personally I get an accountant to do it as it makes no sense to me…...