An application to protect a beneficiaries inheritance from mean-testing as part of her benefit stipulations has been agreed by the England and Wales Court of Protection (EWCOP) (Re: LMS, 2020 EWCOP 52).
The 21-year-old lady – who won’t receive the inheritance until she is 25 – lives with a learning disability in a residential care facility. She is in receipt of benefits and has her care fees paid for by the local authority. Both of these are means-tested.
To prevent her inheritance from affecting the mean-tested benefits and fees, the lady’s mother (her attorney) applied to the EWCOP to have the legacy placed in a disabled person’s trust, to mitigate the risk that it would be taken into consideration for the means-testing.
The counter argument saw the Official Solicitor stating the the lady would be deemed to have deprived herself of the capital for the purpose of securing benefits (anti-deprivation purposes). Therefore it should be taken into account for benefit and means-testing purposes.
The Court took into account the wishes of the ladies’ grandad who left her the legacy, and decided that the inheritance should be protected against any form of means-testing.
However, the relevant local authority and benefits agency have the ability to contest this decision.
