money transferred to trust - deprivation of capital?

My client lives with her adult daughter who she cares for as she has learning difficulties.  Her husband died several months ago and he had dealt with all the finances.  They had been receiving PC savings credit and CTB as a couple and my client claimed for herself following her husband’s death.

She has only just found out that her husband had a fixed-term bond worth £40,000 that matured in September.  This was intended for their daughter when they both died.  PC and CTB had never been told about this.  My client has now put the money from this bond into a trust fund for her daughter on the advice of a solicitor.  PC and CTB still don’t know about this money and my client has no intention of telling them.

Would this trust fund be disregarded for PC and CTB if discovered as it is intended for the daughter?  Would it have been disregarded when in a bond?  Should my client have informed PC and CTB of the money when she found it and could this now be seen as deprivation of capital?  Hmmmm….please help!

she probably shouldn’t have told you that she has “no intention of telling them” if in fact she should tell them (POCA and all that…)

if the money was always in trust for the daughter, whilst invested, may be ok anyway (would need to prove it)

Claire (at BHP Law)