Trust Fund

I have a client who, last week inherited £35,000 from his late father.

Both father and son were disabled and shared a house, father recently died and son knew nothing about a will/estate until he received a letter from solicitors with a cheque for the whole amount.

Client is 56yrs and getting: DLA (HRC & HRM) IB with IS top-up, full HB & CTB, he also has a care package for which he receives DP’s.

Can he now set up a discretionary trust fund for the whole amount for himself without it effecting his benefits or will it be perceived as notional.

Many thanks

Hi,

I think there would be a large possibility that would be seen as deprivation. He owns and has access to that money now so I think it might be too late to prevent this causing the loss of the means tested bens and affecting charging for the DPs.

Jane

Thanks Jane, that’s what I thought.
It would have been so much easier if his dad had set something up

*gets on legal hobby-horse* did a solicitor draft the will or was it home-made? A solicitor ought to have been aware of the risks to benefit of a large outright sum of capital.
Yes, it would be deprivation of capital, because the only reason for doing it would to to preserve benefits.

Will was drawn up by a solicitor and not just “any old” solicitor but the family solicitor who has known the family and their circs for more than 30 years. On the face of it badly advised ..... .