Re LMS (Settlement of Property into a Trust) [2020] EWCOP 52 District Judge Beckley

P was in receipt of means tested benefits and the local authority paid her residential care fees, again subject to means testing. When her inheritance came into possession, she would lose those benefits until the capital dropped below the capital limits.

P’s mother [her attorney] proposed a settlement of P’s inheritance into a disabled person’s trust where the capital would not be taken into account in means testing.

The court was persuaded that securing the entitlement to means tested benefits was not a “significant operative purpose” of the settlement because it would better represent P’s grandfather’s wishes, namely to benefit P.

This is a very interesting decision which has caused a lot of legal discussion, so please do have a look.

It is not binding on LAs but will clearly be cited, so I’m sure we will hear of this again.

(Author: Tish Hanifan)