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Compensation capital lump sum-help!
If a client gets a lump sum personal injury payment is this counted as capital for Income Support. It was paid in full to the client , not held in trust and it was paid in 2007.
I think it is still capital from looking though the DMG.
Yes, it could only be disregarded for 12 months if not put into a trust. See paras 12 and 12A of Schedule 10 to the Income Support regulations. 12a makes it clear that the disregard is only for 52 weeks.
A solicitor working in claimant PI work ought to be aware of this and should have advised putting it into into trust, unless of course at that date there was no likelihood of the claimant (word used in litigation sense) ever needing to claim benefits in the future.
ps: six year limitation period in professional negligence cases: verb sap!
Even if it is 52+ weeks since the capital was received, it can still go into trust without the deprivation of capital rule applying and will be disregarded from when it is in trust (but not for period of 53 weeks until trust set up). It’s never too late.
Thanks for that :-D