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UC and Criminal Inj. Compensation
I know that claimants who are awarded CIC have the CIC payment ignored as capital for twelve months after the payment is made but do they still have the right to set up a trust fund with the money provided that they do so within twelve months? I’m sure this was the rule with IS etc but I don’t know if it transferred to UC as well (and my Sweet & Maxwell books are about fifty miles away in another office!)
thanks
Legacy system seems to be replicated by regulation 75(4) of the UC Regs ....‘75(4) If the sum is held in trust, any capital of the trust derived from that sum is to be disregarded in the calculation of the person’s capital and any income from the trust is to be disregarded in the calculation of the person’s unearned income.’
Commentary in Sweet and Maxwell does raise a potential issue with notional capital rules coming into play though- ie a decision to put funds in trust could be seen as deprivation by increasing UC once 12 month disregard expires - refers to the rules for IS, JSA and ESA giving protection from operation of notional capital rules for money derived from personal injury that is moved to a trust - but UC does not mirror this. Commentary goes on to suggest the intention is clearly the same, and rules should operate in the same way as legacy benefits. (page 270/271 of current edition).
I know that claimants who are awarded CIC have the CIC payment ignored as capital for twelve months after the payment is made but do they still have the right to set up a trust fund with the money provided that they do so within twelve months? I’m sure this was the rule with IS etc but I don’t know if it transferred to UC as well (and my Sweet & Maxwell books are about fifty miles away in another office!)
thanks
CIC payments can be placed into trust at any time and disregarded for benefit purposes.