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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70404
Experience:  Over 5 years in practice
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My son has a Compensation Bare Trust and I am a Trustee. I

Customer Question

My son has a Compensation Bare Trust and I am a Trustee.
I set up for him, using money from the Trust, an internet ISA.
I manage the Isa on the internet. My son cannot access the ISA as he does not know the any details of the ISA nor does he know the password, security code etc.
Jobcentre Plus regards ***** ***** as being outside the Truat -even though all the money and administration is done through a current account rein by the Trustees and my son does not have access to the money.
I regard the ISA as an investment within the Trust. Jobcentre Plus probably does not.
What do you think?
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Hi.
Thank you for your question. My name is ***** ***** I will try to help with this.
I am very sorry for the delay.
I'm also sorry that I cannot give you good news because I'm afraid that you guessed correctly. The DWP would take the view that these are funds under the control or within the reach of either you or him and this should have been declared to them for them to assess any claim.
It used to be possible to continue to claim whilst you were either the beneficiary or the holder of the trust but I'm afraid they have closed up that loophole now.
I'm very sorry.
Can I clarify anything for you?
Jo
Customer: replied 3 years ago.

Yes, please.

You say that it "used to be possible to claim whilst you were the beneficiary of the Trust...but .. they have closed up that loophole now."

That may be for new claimants but has not been my experience to date.

This Compenmsation Bare Trust was begun in March 2010. The Dept of Work and Pensions made my son pay back some £44,000 of benefits but in return acknowledged that all monies in the Trust would be disregarded as far as benefits in the future are concerned. They have honoured this.

However, although the money for the beneficiary's ISA came from the Trust, and although the beneficiary did not have access to the ISA - which is an internet ISA and the beneficiary does not know the sort-code, the number of the ISA, the password, the security code etc.- I have the impression that the Dept W&P regards ***** ***** as outside the Trust.

Please would you comment on all of this, please?

Expert:  Jo C. replied 3 years ago.
That wouldn't change my answer above I'm afraid.
You have to disclose this for the purposes of any means tested benefit claim.
Customer: replied 3 years ago.

I am puzzled by your original answer about the the DWP "being concerned that these are funds under the control or within the reach of either you..." Surely the purpose of a Trust is that the funds are under the control of the Trustee, but not directly under the control of the beneficiary."

Please would you clarify?

Expert:  Jo C. replied 3 years ago.
I cannot really comment on the contradicatory nature of the situation. I can only tell you the law, common practice and requirements.
Customer: replied 3 years ago.

The DWP still respects that the Trust administered by the Trustee(s) is not money that needs to be taken into account for benefits.

This seems to contradict what you are saying.

Please comment.

Expert:  Jo C. replied 3 years ago.
Ok.
Good luck then.
I have really given you my view of this so will opt out.
Customer: replied 3 years ago.

I am not satisfied with the answers of the Expert as her statements are contradicted by the facts - and she even contradicts herself.

I would like my money back, please, as I am not satisfied.