My client was awarded a large criminal injuries compensation payment in 2002 of over £200k. This money was placed in trust funds and from this he receives a £215 a month payment.

He was advised (he states) that neither the compensation payment of subsequent payments from the trust would effect his entitlement to benefits so he did not inform the DWP. In 2007 they stopped his IS entitlement pending investigation, they decided in Feb this year that there was no intention to commit fraud but he has been issued with a large IS overpayment of over £5000. What I would like to know is:

1) His money can be disregarded as Capital if it is in a trust fund but does it have to be any particular type of trust fund as he seems to have three trusts in the form of ISA's and Shares.

2) Although he cannot remove money from the trusts instantly he can take money with notice, does this therefore mean the money is not disregarded as he has access to it?

3) How are the £215 a month payments viewed?. I seem to have conflicting information in the benefit guides I have, Disability Alliance handbook states that all payments are disregarded as Income, CPAG seems to imply that they are counted.