Post by Beryl on Dec 8, 2010 17:45:23 GMT
Personal Injury Compensation: Means Tested Benefits:
If a person is claiming compensation for suffering injuries or illness caused by another party, they are likely to receive lump sums of money called Interim Payments at some point . These can be paid to them prior to the final settlement of their legal case.
Depending on the worth of the claim and the immediate housing, rehabilitation and equipment needs of the person claiming, the Interim Payments may run into many thousands of pounds. The amounts of the interim payments may therefore, in time, have a considerable impact on someones entitlement to Income Related Benefits and any financial assistance from the Local Authority toward their care provision.
There is legislation now which protects any funds which are awarded from this type of legal claim for up to 52 weeks from receiving the first payment. After 52 weeks, if the money is not further protected, it will be viewed as capital and will be included in any financial assessment conducted by the Benefits agency for income related benefits and by the Local Authority when assessing for care provision.
Therefore, if someone is claiming any of the income related benefits which includes: Income Related Employment and Support Allowance; Income Related Job Seekers Allowance; Pension Credits; Housing Benefit; Housing Allowance; Council Tax Benefit and Income Support: the individual can continue claiming these benefits as long as it is within the first 52 weeks of receiving the first Interim payment.
The individual needs to notify the Benefits agency of the circumstances and that they have received an interim payment.
It is therefore crucial that within the first 52 weeks from when a person first receives an interim payment that they seek advice from their solicitor or financial adviser. It may be recommended that a Special Needs Trust is arranged so that all the money that comes from the legal claim can be placed into the fund.
For the purposes of this chapter, once the money is placed into a Special Needs Trust it is again protected and should not be included in any financial assessments which are conducted by the Benefits agencies or the Local Authority when assessing care provision. As long as the money from the legal claim is in the Special Needs Trust then benefit entitlement should only be assessed on a person's/family's weekly income and personal capital, that is their own personal savings: care provision should be financially assessed by the Local Authority in the same way.
Please note, any interest made on the capital within the Special Needs Trust may be assessed as income by the Local Authority. However, different Local Authorities seem to have their own individual guidelines concerning this issue and how one local authority interprets the guidelines may be different to another Local Authority.
Community Occupational Therapy departments are now usually under the umbrella of the Local Authority. Financial assessment for a Disability Facilities Grant for property adaptations and equipment provision usually fall under the same guidelines; money in a Special Needs Trust isn't part of the financial assessment. However, as money becomes increasingly tight for Local Authorities, I am increasingly meeting some resistance and more inventive ways of approaching this issue. On one occasion I was asked by a particular LA whether the compensation award had specifically included money for property adaptation; unless a written declaration was made by a Trustee or the solicitor administering the fund that there was no provision made for adaptations, then the local authority could not look favorably on providing a Disabilities Facility Grant.
Award money held by the Court of Protection is protected in much the same way as when it is placed in a Special Needs Trust.
If a person is claiming compensation for suffering injuries or illness caused by another party, they are likely to receive lump sums of money called Interim Payments at some point . These can be paid to them prior to the final settlement of their legal case.
Depending on the worth of the claim and the immediate housing, rehabilitation and equipment needs of the person claiming, the Interim Payments may run into many thousands of pounds. The amounts of the interim payments may therefore, in time, have a considerable impact on someones entitlement to Income Related Benefits and any financial assistance from the Local Authority toward their care provision.
There is legislation now which protects any funds which are awarded from this type of legal claim for up to 52 weeks from receiving the first payment. After 52 weeks, if the money is not further protected, it will be viewed as capital and will be included in any financial assessment conducted by the Benefits agency for income related benefits and by the Local Authority when assessing for care provision.
Therefore, if someone is claiming any of the income related benefits which includes: Income Related Employment and Support Allowance; Income Related Job Seekers Allowance; Pension Credits; Housing Benefit; Housing Allowance; Council Tax Benefit and Income Support: the individual can continue claiming these benefits as long as it is within the first 52 weeks of receiving the first Interim payment.
The individual needs to notify the Benefits agency of the circumstances and that they have received an interim payment.
It is therefore crucial that within the first 52 weeks from when a person first receives an interim payment that they seek advice from their solicitor or financial adviser. It may be recommended that a Special Needs Trust is arranged so that all the money that comes from the legal claim can be placed into the fund.
For the purposes of this chapter, once the money is placed into a Special Needs Trust it is again protected and should not be included in any financial assessments which are conducted by the Benefits agencies or the Local Authority when assessing care provision. As long as the money from the legal claim is in the Special Needs Trust then benefit entitlement should only be assessed on a person's/family's weekly income and personal capital, that is their own personal savings: care provision should be financially assessed by the Local Authority in the same way.
Please note, any interest made on the capital within the Special Needs Trust may be assessed as income by the Local Authority. However, different Local Authorities seem to have their own individual guidelines concerning this issue and how one local authority interprets the guidelines may be different to another Local Authority.
Community Occupational Therapy departments are now usually under the umbrella of the Local Authority. Financial assessment for a Disability Facilities Grant for property adaptations and equipment provision usually fall under the same guidelines; money in a Special Needs Trust isn't part of the financial assessment. However, as money becomes increasingly tight for Local Authorities, I am increasingly meeting some resistance and more inventive ways of approaching this issue. On one occasion I was asked by a particular LA whether the compensation award had specifically included money for property adaptation; unless a written declaration was made by a Trustee or the solicitor administering the fund that there was no provision made for adaptations, then the local authority could not look favorably on providing a Disabilities Facility Grant.
Award money held by the Court of Protection is protected in much the same way as when it is placed in a Special Needs Trust.