Deprivation of Assets - Deed of Variation

Trusts Discussion
1

Hello,

I am aware there was a similar discussion on this topic a while ago but wanted to check there had been no further advancement/ no one is aware of any further guidance from the DWP on the issue.

I have been asked to prepare a Deed of Variation to vary the entitlement of a disabled beneficiary who is on means tested benefits and a local authority care package so that his share passes to his daughter. I am aware that to do so would amount to deprivation of assets and therefore I must decline to act. However, would a Deed of Variation into a disabled persons trust amount to deprivation?

Jade Paine
Q S Howlett Clarke

2

So far as I am aware, unless the assets being settled represent a personal injuries award made to the settlor, even a settlement into a disabled person’s trust will be viewed as deprivation as it puts the assets outside of the claimant’s estate.

Paul Saunders