Trust fund income

Discussion in 'UK Tax Credits and Benefits' started by dave, Dec 7, 2009.

  1. dave

    dave Guest

    My wife is on dla, i get carers allowance for her and also get
    guaranteed pension credit.
    If my wife got income from a trust fund (from a possible inheritance)am
    i correct i thinking that its treated just like any other income and
    affect how much pension credit i get?
    When i reach 65 would it also affect any pension credit used to top up a
    state pension?
    Thanks in advance.
    Dave
     
    dave, Dec 7, 2009
    #1
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  2. dave

    Clive Martin Guest

    In message <bHcTm.125675$2>, dave
    <> writes
    >My wife is on dla, i get carers allowance for her and also get
    >guaranteed pension credit.
    >If my wife got income from a trust fund (from a possible inheritance)am
    >i correct i thinking that its treated just like any other income and
    >affect how much pension credit i get?


    If the trust is set up in such a way that your wife has no right to
    access the capital, then the income from the trust will be treated as
    income.

    If the trust is set up in such a way that your wife does have access to
    the capital, then it will be treated as giving an "assumed" or "tariff"
    income of £1 per each £500 of capital or part thereof. There is no
    upper capital limit for Pension Credit but the tariff income might mean
    that you no longer qualified, depending upon the amount of capital in
    the trust.

    >When i reach 65 would it also affect any pension credit used to top up
    >a state pension?


    The above process would apply to any Pension Credit calculation.

    Clive

    --
    Clive Martin
    my email address is cliveatcmartindotdemondotcodotuk
     
    Clive Martin, Dec 8, 2009
    #2
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  3. dave

    dave Guest

    Clive Martin wrote:
    > In message <bHcTm.125675$2>, dave
    > <> writes
    >> My wife is on dla, i get carers allowance for her and also get
    >> guaranteed pension credit.
    >> If my wife got income from a trust fund (from a possible
    >> inheritance)am i correct i thinking that its treated just like any
    >> other income and affect how much pension credit i get?

    >
    > If the trust is set up in such a way that your wife has no right to
    > access the capital, then the income from the trust will be treated as
    > income.
    >
    > If the trust is set up in such a way that your wife does have access to
    > the capital, then it will be treated as giving an "assumed" or "tariff"
    > income of £1 per each £500 of capital or part thereof. There is no
    > upper capital limit for Pension Credit but the tariff income might mean
    > that you no longer qualified, depending upon the amount of capital in
    > the trust.
    >
    >> When i reach 65 would it also affect any pension credit used to top up
    >> a state pension?

    >
    > The above process would apply to any Pension Credit calculation.
    >
    > Clive
    >


    Thanks Clive
    Much as i thought.
     
    dave, Dec 8, 2009
    #3
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