Have a client who is progressing a civil case following her marriage breakdown, had a sum of money passed to her solicitor from the settlement of the marital property, which the solicitor has been holding pending the assessment of an ongoing legal charge that is due to to be settled with the Legal Services Commission. About £20,000 is being held and the expectation is that most of this would be consumed by legal costs, she also has an ongoing legal case which is being presently financed by the LSC concerning the custody of her son. Presently the capital is not taken into account (disregarded) re commissioners decision CIS 984 2002 / guidance reference 29140 to 29142 in her Income Support award.
Her expectation was that the solicitor would reconcile the amount owed to th LSC and pay them and she to get the difference. But what the LSC have stated for her to be paid the full £20,000 by the solicitor then to settle this herself with the LSC. As she is on Income Support, Housing Benefit / Council Tax Benefit is there a risk that she could be deemed as depriving herself of capital by paying off the LSC so to access her means tested benefits? Would be appreciated if you are able to provide some feedback on the matter.
Graham
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