Dáil Éireann Debate, Tuesday - 27 March 2018
580. Deputy Michael McGrath asked the Minister for Employment Affairs and Social Protection if there is a situation in which a portion of the income of one spouse which is directed into a legally formed trust fund for a dependant child or adult with a serious disability is not reckonable as part of the means test of the carer's allowance for the other spouse who is a full-time carer for that dependant child or adult. [13590/18]
Amharc ar fhreagraThe Department operates a range of means tested social assistance payments. The means test takes account of the income and assets of the person (and spouse/partner, if applicable) applying for the relevant scheme. Income and assets include income from employment, self-employment, occupational pensions, maintenance payments as well as property owned (other than the family home) and capital such as savings, shares and other investments.
The purpose of means testing payments is to ensure that resources are directed to those with the most financial need, with the expectation that those with resources will use them to support themselves. The weekly entitlement of the person is the maximum weekly rate of payment for the relevant family less the means calculated. In calculating the means of a person, outgoings such as rent, mortgage payments or, as in this case, monies going in to a trust fund are not disregarded.
It should be noted that the income disregard and means test for carers is one of the most generous within the social protection system. The amount of weekly income that is currently not taken into account is €332.50. In the case of the income of a couple, the first €665 of their combined weekly income is disregarded.
In the case of funds on trust, the key issue for means testing purposes is the ownership of such funds. Trust funds which are owned by a child of a claimant are not assessable on a capital basis when determining the means of a parent who is a welfare claimant. Once monies are placed into a trust fund for another person, the capital value of that trust fund is not assessable if the claimant is no longer the owner of the funds.
