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PIP and Discretionary Trust Funds and notional capital
- Ducky Mum
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6 months 1 week ago #291306 by Ducky Mum
PIP and Discretionary Trust Funds and notional capital was created by Ducky Mum
Hello
I am due to receive a modest inheritance soon. I am considering a Deed of Variation in favour of my son so he would have about £20,000 towards buying a house.
My son currently receives PIP, he has autism and ADHD and is impulsive . I do not want him to have complete control of the money until he is 25.
My understanding of Discretionary Trust Funds is that other people, (my relatives) would have control of release of the money and that it would not be counted as notional capital in the event that my son has to claim unemployment benefit.
Is this the case?
Also, how do I find an appropriate legal specialist to set up a Discretionary Trust Fund?
Thank you for any help.
Duck mum
I am due to receive a modest inheritance soon. I am considering a Deed of Variation in favour of my son so he would have about £20,000 towards buying a house.
My son currently receives PIP, he has autism and ADHD and is impulsive . I do not want him to have complete control of the money until he is 25.
My understanding of Discretionary Trust Funds is that other people, (my relatives) would have control of release of the money and that it would not be counted as notional capital in the event that my son has to claim unemployment benefit.
Is this the case?
Also, how do I find an appropriate legal specialist to set up a Discretionary Trust Fund?
Thank you for any help.
Duck mum
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- Gordon
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6 months 1 week ago #291335 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic PIP and Discretionary Trust Funds and notional capital
DM
I'm sorry but your question is outside the remit of the forum, you need to speak to a solicitor.
Gordon
I'm sorry but your question is outside the remit of the forum, you need to speak to a solicitor.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- denby
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6 months 1 week ago #291339 by denby
Replied by denby on topic PIP and Discretionary Trust Funds and notional capital
Dear Ducky Mum,
www.gov.uk/trusts-taxes/trusts-for-vulnerable-people
you are correct, a discretionary one of these should do what you want. As long as your son cannot get at the money himself, ie trustees have to dish out only what they approve of, it should not count as his money. Late auntie did this for her niece who is disabled and benefit dependent, to avoid her small inheritance being lost to the government.
I think you'll find a solicitor via the
solicitors.lawsociety.org.uk/
click on Find a solicitor, click on Wills trust and probate, put in the postcode.
The thing you might need to consider is, family relationships if the son would resent not having control of the money, and be angry with the Trustees.
Best wishes, Denby
www.gov.uk/trusts-taxes/trusts-for-vulnerable-people
you are correct, a discretionary one of these should do what you want. As long as your son cannot get at the money himself, ie trustees have to dish out only what they approve of, it should not count as his money. Late auntie did this for her niece who is disabled and benefit dependent, to avoid her small inheritance being lost to the government.
I think you'll find a solicitor via the
solicitors.lawsociety.org.uk/
click on Find a solicitor, click on Wills trust and probate, put in the postcode.
The thing you might need to consider is, family relationships if the son would resent not having control of the money, and be angry with the Trustees.
Best wishes, Denby
The following user(s) said Thank You: Gary
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- pomaus
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6 months 1 week ago #291345 by pomaus
Replied by pomaus on topic PIP and Discretionary Trust Funds and notional capital
Actually, I would be more inclined to go for a bare trust as they are much safer and more suitable.
The DWP changed the rules when it comes to UC and Trust funds, especially discretionary trusts.
With that being said PIP is not a means-tested benefit and therefore not subject to capital limits and so is not really neccessary.
But if your son received or is likely to receive in the future, UC or New style ESA then I would certainly consider setting up a bare trust
The DWP changed the rules when it comes to UC and Trust funds, especially discretionary trusts.
With that being said PIP is not a means-tested benefit and therefore not subject to capital limits and so is not really neccessary.
But if your son received or is likely to receive in the future, UC or New style ESA then I would certainly consider setting up a bare trust
The following user(s) said Thank You: Sheila 966, Gary
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