can i claim incapacity benefit when i have been paid compensation from the car accident which is why i claim the benefit it the first place

[eayrzy]

can i have my compensation which is in a trust if i am on incapacity benefit it was put in a trust because i was told i would lose my benefit

[bednobs]

as far as i know IB is not means tested, so i don't see why not. But even if you can't you'll have your compensation money to live on.

[ummmm]

But compo can takes years to come through.

[bednobs]

but eay already has it - and has put it in a trust

[ummmm]

Sorry bednobs....didn't read it properly.

[bednobs]

i don't really get the point of that though - what's the point of having loads of money you can't get at and living off (measly) state benefits?

[ummmm]

God knows *shrugs shoulders*

[sandyRoe]

Incapacity benefit is not 'means tested'. As far as I know a millionaire could claim it if he was eligible.
If someone tried to hide their money in a trust in order to claim Income Support or housing benefit, the authorities would take a very dim view.

[TonyV]

DLA is not means tested ESA / JSA is

[dave50]

I thought compensation was for you to live on due to loss of earnings. That being the case, then you dont need incapacity benefit on top.

[themas]

1. Incapacity Benefit (which is dependent on having a qualifying National Insurance contribution record) is not means tested, & having the compensation money would not invalidate a claim. However, it would invalidate a claim for any means tested benefits, such as Housing Benefit or Council Tax Benefit. It is for that reason that personal injury compensation is often put in a trust.

2. People on Incapacity Benefit are gradually being changed over to Employment & Support Allowance. This has 2 elements - one is not means tested & is based on National Insurance contrbution records; the other is means tested. Anyone changed over from Incapacity Benefit already satisfies the NI contribution record so their ESA is not means tested. However, the Government is proposing to limit the non-means tesated element to a maximum of 12 months.

3. Job Seekers Allowance also has both means tested & non-means tested (NI contribution based) elements, but the latter only lasts for 6 months.

4. So far as I can see from the original post, there is nothing to stop the poster making use of the money in the trust other than obtaining the agreement of the trustees.

[boxtops]

Compensation from an accident is to compensate you for injuries sufered and possible loss of earnings. I wouldn't have thought that a claim settlement could ever keep you comfortably for life. If you still have disabilities as a result of the accident, then yes, have a go at claiming IB.

[dave50]

It all depends on the level of compensation recieved as whether it is justified to claim IB on top. Why put it in trust? As I said before, I thought it was to live on due to loss of earnings. If someone has say a 6 figure sum tucked away somewhere, whether it be from compensation or otherwise, then they do not need to claim IB.