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Does Discretionary Trust Funds affect ESA benefits?

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2 weeks 5 days ago #300851 by Paul Frog
Hi,
My brother has a mental illness and has been on long term ESA benefits. We recently lost our mother and she set up a "Discretionary trust fund" for him so his benefits are not affected. Over the last year he has been receiving distributions from the Trust Fund to help pay for general living costs. He recently was contact by ESA and they are now reviewing his income including the distributions from the Trust. Does anyone know if his ESA benefits can be impacted by receiving regular payments from the Trust?

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2 weeks 5 days ago #300872 by David
Hi Paul Frog

Your enquiry is more a legal one than a Benefits related one. Though maybe other members can share their experiences on the subject.

David

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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2 weeks 5 days ago #300877 by MD
I would suggest that you go to an expert for help.
There are complicated rules about this, and I think it states on the Government website what they are.
There is some kind of monthly allowance that is disregarded from income, but not if the payments were in cash.As far as I could tell, the trust would have to purchase the goods and services that are needed.
I believe that the disability organisations in your local area might be able to help with this. I researched it for my husband but it depends on the wording of the document and also his age I think.
Get help as soon as you can as it is a minefield as far as I could see.
There are some law firms that deal with these things also, and maybe CAB could help.
If you are in England there are a few firms that specialise in this.
Good luck and I hope you can get some help.
The following user(s) said Thank You: denby, Paul Frog

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2 weeks 5 days ago #300883 by dancer22
Under Universal Credit, the rules change and income from trusts is classed as unearned income and deducted from UC. ESA has been more lenient until now. You should get some proper legal advice. ESA may not count the income, UC will.
The following user(s) said Thank You: denby, MD, Paul Frog

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2 weeks 5 days ago #300886 by Paul Frog
I've tried to find a lawyer that can help, but only find general Trust lawyers. Do you know any that specialize in this area please?

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2 weeks 5 days ago #300887 by Paul Frog
Thanks you. Do you know any that specialize in this area please? I've only found general Trust fund and not specific to benefits.

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