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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
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Experience:  English solicitor with over 12 years experience
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My Mother won a liability case against NHS last year for my

Resolved Question:

My Mother won a liability case against NHS last year for my fathers untimely death.
She won £136,000.
My questions are
1 Do we have to inform local council of this as she is receiving means tested benefits to assist her care bill because she is suffering from dementia.
2 A trust was set up through the courts and we have to go cap in hand to retrieve any of this money, can we set up a bank account say the family trust fund and pay her carers direct from this account, if we lost all of her benefits.
3 Would it be best to set a separate bank account for this money or just have the money put into Mums normal account, I have power of attorney for my mums assets.
4 Mum still owes £100,000 on her house which would normally be paid off through the sale of the house on her death. Could this have any effect on whether she looses all of her benefits, and would she be financially better off, paying off this money out of the fund if possible.
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

I would respond to your questions as follows:

1 Do we have to inform local council of this as she is receiving means tested benefits to assist her care bill because she is suffering from dementia. Yes, absolutely and without delay.

2 A trust was set up through the courts and we have to go cap in hand to retrieve any of this money, can we set up a bank account say the family trust fund and pay her carers direct from this account, if we lost all of her benefits. Yes, if the Trustee/court agrees to this as the funds are now held in a Trust and not disposable readily.

3 Would it be best to set a separate bank account for this money or just have the money put into Mums normal account, I have power of attorney for my mums assets.

It would be better to open a separate account for these funds to assist with accounting and accountability issues.


4 Mum still owes £100,000 on her house which would normally be paid off through the sale of the house on her death. Could this have any effect on whether she looses all of her benefits, and would she be financially better off, paying off this money out of the fund if possible.

If she loses her means tested benefits (very likely), it may be better to pay off the remaining loan/mortgage on the property especially if the interest rate payable on the mortgage is higher than what interest the funds will attract in a savings account in the current low interest rate climate.

Hope this helps

 

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