Providing for Someone Who Is on Means-Tested Benefits

Problem with direct inheritance

• Beneficiaries with capital between £6,000-£16,000 lose entitlement to means-tested benefits, for example Universal Credit, Pension Credit and Income Support.
• Capital between £6,000–£16,000 reduces benefits gradually.
• Capital below £6,000 is disregarded.
• Direct inheritance could result in the benefits being lost, forcing the beneficiary to spend the money just to regain eligibility.

Solution: Using a Trust in Your Will

• Establish a trust for the beneficiary.
• Appoint trustees to manage the inheritance.
• Capital can be paid out in a controlled way, ensuring it does not exceed £10,000, so benefits continue.
• Trust funds can be used for holidays, activities or improving quality of life without affecting benefits.

Next steps

To learn more about trusts and how they can work for your family, attend a free seminar or book an appointment.