Setting up a trust fund
Discussion
Do I need a solicitor or an accountant?
Back story - mum died recently, there’s myself and 2 sisters that are the beneficiaries of her estate. One of my sisters is mentally handicapped and in receipt of benefits. The house is being changed into our 3 names. There’s cash of about £17k each, if we transfer the cash into my sister’s account it will put her significantly above the maximum savings allowed which means she’d lose her benefits until it’s spent.
We’ve been advised to put it in a trust fund which the 2 of us will be responsible for.
The solicitor dealing with the will doesn’t do it and isn’t sure who does, nobody we know has ever had to do similar.
Back story - mum died recently, there’s myself and 2 sisters that are the beneficiaries of her estate. One of my sisters is mentally handicapped and in receipt of benefits. The house is being changed into our 3 names. There’s cash of about £17k each, if we transfer the cash into my sister’s account it will put her significantly above the maximum savings allowed which means she’d lose her benefits until it’s spent.
We’ve been advised to put it in a trust fund which the 2 of us will be responsible for.
The solicitor dealing with the will doesn’t do it and isn’t sure who does, nobody we know has ever had to do similar.
I am not familiar with means testing of benefits but I suspect that a house in her name will be relevant.
I would say a solicitor.
Assuming she died less than 2 years ago a deed of variation maybe appropriate as the money then never touches her.
The issue of doing this on a deed of variation is it then becomes a settlor interested trust ( she gave it to herself ) which introduces other tax issues.
I feel I also ought to point out that means testing is means testing and if she has had an inheritance taking her above those thresholds then she should not be claiming. Others may have a different view.
I would say a solicitor.
Assuming she died less than 2 years ago a deed of variation maybe appropriate as the money then never touches her.
The issue of doing this on a deed of variation is it then becomes a settlor interested trust ( she gave it to herself ) which introduces other tax issues.
I feel I also ought to point out that means testing is means testing and if she has had an inheritance taking her above those thresholds then she should not be claiming. Others may have a different view.
ooo000ooo said:
................ in receipt of benefits. The house is being changed into our 3 names. There s cash of about £17k each....................
Which benefits specifically? Some are means tested and some (for example PIP, DLA, or new-style ESA) aren't. As I see it (and I am far from an expert) she will lose the means-tested benefits (if she's on any, which I think seems fair in this case), and also attempts to circumvent this such as spending it quickly, transferring it to a family member, etc are not allowed - well they are not forbidden but the effect will be the benefits will be assessed as if the money was still there. Also, the capital in the house (since its not the primary residence) will count towards the savings.Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff