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Topic starter
02/08/2023 2:29 pm
Hi
i am wondering if you can help I am currently in a protected trust deed and have been for over a year now.
I have just applied for child disability payment for my son due to his recent diagnosis of his disability.
I have been told that once awarded they would potentially look to backdate which would mean I would be given a lump sum payment. My question is do I need to inform my trustee of this? As this is my sons disability payment & also do I need to let them know future payments I get for him until he is 18.
I am sure I have read somewhere that disability payments can’t be taken into consideration but I’m it 100% sure.
Thanks
03/08/2023 4:40 pm
Hi Nicola_36. Firstly, yes you should tell your Trustee about all household income.
However, what they do about that information is not as straightforward as it should be. What is certainly true is that you should never be asked to contribute benefit income to a Protected Trust Deed. This is specifically prohibited.
Technically however, your trustee could argue that as a result of this extra benefit income you can now afford to pay a higher amount from your earned income - potentially a backdated sum as well as the ongoing contribution. I don't believe the vast majority of trustees would view it this way - most would simply accept that these funds are for assisting with the financial implications of your child's disability and increase your agreed household outgoings by the same amount. So the chances are I am worrying you about nothing here, but I couldn't give you any cast-iron guarantees as to what your own trustee's viewpoint on these things is.
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