Capital from a personal injury/damages claim

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  • #31726
    marlene
    Participant

    I have a claim from a lady who was involved in a car accident. She was awarded 1.8 million in damages by the high court. These monies are paid by monthly instalments to her receiver who has been appointed by the courts. The receiver is her father who has invested the money in a NatWest bond in the claimants name and purchased a property, which according to land registry is held in the name of the claimant.

    Am I right in thinking that the money does not fall to be disregarded under schedule 6 because the money is not held in trust. Or does the fact that the father has been appointed the receiver by the court overide the requirement for a trust fund to be set up.

    Hope that makes sense!

    Any thoughts greatly appreciated.

    Incidently the property purchased is the parents home and they renovated this property with the claimants money so that it was able to accomodate her care needs. As her recovery has progressed it has been decided that she would now like to live independently, therefore she is renting a property, hence the HB application.

    Thanks

    Marlene 😕

    #88751
    Kevin D
    Participant

    Others may have more knowledge of the status of appointed receivers.

    However, my initial reaction is that, in the absence of a trust, the capital remains that of the claimant and the appointment of a receiver doesn’t change that. Although different facts, potentially relevant caselaw may be:

    [b:09442b8b23]Beattie v SoS DWP [2001] EWCA Civ 498 1 WLR 1404 [R(IS) 10/01][/b:09442b8b23]www.administrativeappeals.tribunals.gov.uk/aspx/view.aspx?id=85

    [b:09442b8b23]R(SB) 17/87[/b:09442b8b23]
    http://www.rightsnet.org.uk/pdfs/rsb/17_87.pdf

    [b:09442b8b23]CH/2255/2006[/b:09442b8b23]
    new.hbinfo.org.com/comdecs/ch_2255_2006.doc

    #88752
    marlene
    Participant

    Those were my thoughts too. Thanks for your links, I will have a read!

    Thanks Again 😀

    #88753
    Anonymous
    Guest

    It does sound as if at least two of the assets (the ones you have mentioned) are the claimant’s legal property and are not owned by her father as trustee, so I agree they probably should be taken into account. Remember the first payment fell to be disregarded for 52 weeks though, so there might be a brief period before she is over the capital limit.

    #88754
    marlene
    Participant

    Thanks Peter.

    I don’t think 52 weeks will be relevant in this case as she received the first part of the settlement in 2001.

    #88755
    marlene
    Participant

    The father has been appointed as receiver by the court of protection. Therefore the capital may be disregarded under 45.(1)(a).

    [i:8aab5db5e2]Any sum of capital to which sub-paragraph (2) applies and –
    (a) which is administered on behalf of a person by the High Court or the County Court under Rule 21.11 (1) of the Civil Procedure Rules 1998 or by the Court of Protection[/i:8aab5db5e2]

    Would anyone agree?

    Then I am just left with the property, which according to land registry is registered in her name, but C/o father, does not fall to be disregarded as it is neither capital, or property held in trust.

    Thanks 🙄 [/i]

    #88756
    peterdelamothe
    Keymaster

    The type of case that brings the welfare state into disrepute? Obviously with sympathy with your claimant as we could all be there. But if she was given £1.8 million why does she need to claim HB?

    More to the point, where exactly is her “normal home”? If the property was bought for her and adapted for her, why did SHE have to move out to gain independence I wonder?

    Sometimes people need independent advice outside the family ……

    #88757
    marlene
    Participant

    I think her recovery has been better than maybe was first thought, and she has moved out of the family home to gain independence and to take up a university course (the father purchased a home and built her an annexe). But you are right, I am staggered that they feel the need to apply for HB!

    I think I am now on track, the property in her name has a value of £600k and doesn’t fall to be disregarded as its not owned in trust.

    Thanks for you help 😀

    #88758
    Anonymous
    Guest

    How old are the parenmts Marlene? The value of the house would be disregarded if it is occupied by a relative aged 60+

    What Peter d says did occur to me as well: the paremnts should not slip[ into the habit of thinking of it as their money. If their daughter is ready to live independently, why would she not want to do so in the house that she has bought and adapted with her own money, and let her parents move out and rent?

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