Discretionary Trust

Hello,
I was wondering if somebody could help me with a question regarding discretionary trusts or disabled discretionary trusts. Briefly i suffer from fairly severe mental health problems and currently receive Income related ESA, DLA (both care and mobility) and housing benefit.
My parents would like to set up a discretionary trust for me and my daughter (the value would be well above the 16,000 savings limit for means tested benefits).
Would the setting up of the trust disqualify me for any form of means tested benefit entitlement. I understand this is quite a complex area and if other members can't help directly perhaps they could point me in the right direction of where and who to ask.
Kind regards

Ern100 wrote: Hello,
I was wondering if somebody could help me with a question regarding discretionary trusts or disabled discretionary trusts. Briefly i suffer from fairly severe mental health problems and currently receive Income related ESA, DLA (both care and mobility) and housing benefit.
My parents would like to set up a discretionary trust for me and my daughter (the value would be well above the 16,000 savings limit for means tested benefits).
Would the setting up of the trust disqualify me for any form of means tested benefit entitlement. I understand this is quite a complex area and if other members can't help directly perhaps they could point me in the right direction of where and who to ask.
Kind regards

Hi E100,

You are correct setting up a Trust, and how this will effect entitlement to Income Related benefits, and any future entitlement to help with "care" is not a straightforward issue.

I do have personal experience of setting up a "Personal Injury Trust" but this is different to the type of trust that you speak of.

My best advice would be to research on the net, and contact various Solicitors and Trust management companies.

There will be a charge for setting up the Trust and issuing the Trust Bond.

Make sure you use a reputable company, the costs will vary, and it would be best to "shop around".

This is what came up when I Googled Discretionary Trusts :

www.google.co.uk/search?q=Srtting+up+a+d...PNUs3nHdHb7AbO24DoCw

Good Luck !!

bro58

Hi E100,

Here are potential sources of further information, where you may be able to gain reliable, independent advice :

Where to get advice?

bro58

A discretionary trust is where money is invested by trustees (which can be relatives, solicitors or both) on behalf of the individual beneficiaries. Money cannot be accessed by the beneficiaries only by the trustees on their behalf. They use their discretion to decide how this money should be allocated. Your parents can specify in a will how they wish the money to be spent after they die. As you cannot access the money directly the capital is disregarded for benefits purposes. Your parents will need a solicitor to set up the trust. They will be able to go into more detail.