Purpose/Quistclose Trusts- any experience, would this count?

Hello,

I was wondering if anyone had had any experience of arguing capital should be ignored on the basis the money forms a ‘purpose trust’

Situation is as follows: a man with severe mental illness is a beneficiary of a discretionary trust, the trustees are thinking about giving him £11k specifically to buy a car. As the amount to be given is over £6k my understanding is it may affect his means tested benefits, but as the money is for a specific purpose can it be ignored on this basis? Or are there other rules that I haven’t found yet?

If so, does it all still have to be disclosed to the DWP? Or can he just take the money and buy a car? I can’t imagine it will be in his account for too long….....

Thanks :-)

Can’t the trustees just buy him a car?

Otherwise, if it is made express (in writing, signed by the trustees and him) that the sole purpose of the advance is for him to buy a car with it and that the money has to be returned to the trustees if not so used within, say, 30 days, then that is a totally Quistclose situation.

To put a spoke in a little:  is your client proposing to drive the car himself?  Bearing in mind the effects both of severe mental illness and of the medication used to treat it, is your client capable of driving a car safely?    We’ve all seen submissions that imply that people who drive are not as ill as they claim to be.

Thanks for that Ariadne.

I made the same point about them buying the car for him. It was actually the Trustee’s who contacted us, not the beneficiary so I’m not sure about their specific condition, how it affects them or their medication.

Thanks :-)