Hi, I am wondering if anyone can help?

Claimant's daughter passed away a few years ago from CJD (not the variant strain) She is raising her grandson, who is 9. The NHS have just paid out 125k and this will be held in trust with the grandmother being a trustee along with another family member. The money will be accessed from time to time to raise the grandson. Another 125k will be paid out soon and put into another trust with two different trustees and will only be accessed one the grandson reaches 18.

Will the first 125k be treated as capital in respect of the HB and IS claim the grandmother - under 60 - is claiming? It seems such a simple question but I cannot get a definate answer

If the trustee is the benefit claimant, the asset will not usually be considered as part of her capital.

She will be accessing the money for the beneficiary (the grandson) as this is a discretionary trust I take it, therefore not having it as her income. Both should therefore be ignored though will depend on the nature of the trust.

Where the Court of Protection administers a trust fund set up with money awarded in respect of compensation for the death of a parent, in the case of minors under the age of 18, the fund is ignored.

Regards