Accountant Forums


Reply
Thread Tools

Trust fund income

 
 
dave
Guest
Posts: n/a
Thanked:
 
      12-07-2009, 07:28 PM
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

 
Reply With Quote
 
 
 
 
Clive Martin
Guest
Posts: n/a
Thanked:
 
      12-08-2009, 05:58 PM
In message <bHcTm.125675$(E-Mail Removed)2>, dave
<(E-Mail Removed)> 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
 
Reply With Quote
 
 
 
 
dave
Guest
Posts: n/a
Thanked:
 
      12-08-2009, 07:04 PM
Clive Martin wrote:
> In message <bHcTm.125675$(E-Mail Removed)2>, dave
> <(E-Mail Removed)> 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.
 
Reply With Quote
 
 
 
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Special Needs Trust owning and renting a house to the trust beneficiary robert.moredock@gmail.com Tax 1 03-23-2012 04:34 AM
Reform a Credit Shelter Trust to make it a Grantor Trust? jba Tax 1 11-22-2007 05:23 PM
Is the Credit Shelter Trust a Grantor Trust? jba Tax 23 10-29-2007 07:32 PM
Living Trust:trust return CBres77376 Tax 2 04-08-2004 08:41 PM
Credit Trust / Marital Trust simplified question Raymond Tax 4 01-28-2004 05:48 PM


All times are GMT. The time now is 02:02 AM.
Posts in this forum do not constitute the advice of AccountantForums.com or its members. Financial advice should always be taken from qualified advisors before committing to a financial decision.