Disabled Persons Trust
amarshall
Member, Moderator
One of my colleagues has raised an interesting query.
A disabled man, who is the beneficiary of a Disabled Persons Trust (DPT) is set to inherit around £35k from his late father's pension fund. He is in receipt of numerous State Benefits, most of which are means tested. He is in his 30s.
His father was over 75 when he died.
We're thinking that as its a post 75 death, a transfer into the DPT is a non-starter due to a 45% tax charge as the trust is a non-qualifying person.
As he is under 55 (57 if you prefer), assuming he takes no income from the inherited pension, we believe that it will not affect his entitlement to State Benefits at this time. This may well change in the future of course.
Does this sound correct?
Thanks!
Andy
Comments
You will need to search the Decision Makers' Guidance and the associated Memos on the Gov site to see if there have been any entries relating to this issue. From experience, it's hard going!
I'm not sure the age 55/57 issue is relevant for a beneficiary FAD, where access is not age restricted.
From memory I think all pension funds are disregarded until at least SPA anyway. But benefits have changed a lot in the past couple of years.
The best first place to start is probably Citizens' Advice. We have a specialist in our foodbank who helps our users and they have better working knowledge of the DMG and their own guidance.
Thanks Ben!
We'll take a look at the DMG.