Dáil Éireann Debate, Tuesday - 21 May 2024
408. Deputy Richard Bruton asked the Minister for Social Protection whether a person in receipt of disability allowance, who receives a bequest, can have a trust established, which would be administered on their behalf to provide for long-term secure accommodation, instead of being immediately assessed under a means test; and if she will outline the conditions if any which would have to be met. [22808/24]
Amharc ar fhreagraDisability allowance (DA) is a means-tested payment for people with a specified disability who are aged 16 or over and under the age of 66. The applicant must be suffering from an injury, disease, congenital deformity or physical or mental illness or defect which has lasted for one year or is expected to last for one year and, as a result of which, they are substantially restricted in undertaking work which would otherwise be suitable having regard to the person’s age, experience and qualifications. The person must also satisfy a means test and be habitually resident in the State.
If capital held by the person concerned is lodged into their own bank account, the money is assessed as part of the means test.
Where money is lodged into a Trust Fund, the nature of the Trust Fund will determine how the capital is dealt with when carrying out an assessment of the means of the person concerned for the purposes of DA.
Where a Trust Fund is owned by the person concerned, and accessible to the person, then money held in the fund is regarded as property owned and is therefore assessed as capital and the standard capital means test applies.
In the case of a Life Interest Trust Fund, income from the fund is assessed as means rather than the capital value of the fund. Periodic payments or cash income that the person concerned may reasonably expect to receive from the fund during a particular year is assessable as means. The terms of the Trust and the manner in which it is administered will determine what income the person concerned may reasonably expect to receive. Where the person does not have the right to access the trust fund’s capital or assets until they reach a specified age and no periodic payments are being made to the person, means will not be assessed until they reach that specified age.
Where the person concerned receives compensation and this is lodged to a Discretionary Trust, the manner of the administration of the Trust Fund will determine how the capital is assessed in any means assessment. Discretionary Trust Funds are administered by the trustee(s) who is given the authority to apply the income from the capital for the benefit of the person concerned as they see fit. The person concerned does not own the capital or have a life interest in it. The effect on the means of the person concerned for DA purposes depends on how the trust is administered.
If the Deputy has a specific case in mind, my officials would be happy to examine the case.
I trust this clarifies the matter for the Deputy.
