One in 3 people retiring in debt.

[Goingtoseed]

You didn't tell us you reduced your income and savings to such an extent that you qualify for means tested benefits.  GTS has pointed out on more than one occasion that due to putting all his assets into the trust, his pension and savings are such that benefits make up the bulk of his, and his wife's income.

The setting up of the trust was something that we decided many years ago - in fact 1996 whilst I was still working full time.
The last time any money was put in was when I retired in 2009 when I took a capital sum and a pension.
This was wholly done to provide for my future family and to mitigate any potential liability in respect of Inheritance Tax. There was never any question of it affecting a means tested benefit - that just happened by chance. It never crossed my mind at the time that it would be helpful for any means tested benefit I may wish to claim - I didn't have a crystal ball.

[GrannyMac]

Perhaps gleefully pointing out how well you have done out of the welfare system isn't tactful.  I doubt there are many recipients of pension credit who can boast of being able to give thousands of ££ away.

[Sheila]

Perhaps gleefully pointing out how well you have done out of the welfare system isn't tactful.

I agree GrannyMac.

[mick607]

The setting up of the trust was something that we decided many years ago - in fact 1996 whilst I was still working full time.
The last time any money was put in was when I retired in 2009 when I took a capital sum and a pension.
This was wholly done to provide for my future family and to mitigate any potential liability in respect of Inheritance Tax. There was never any question of it affecting a means tested benefit - that just happened by chance. It never crossed my mind at the time that it would be helpful for any means tested benefit I may wish to claim - I didn't have a crystal ball.

Anyone else would be guilty of deprivation under DWP rules. Its different it seems when you know how to work the system.
I think it is immoral to be able to give your wealth away then claim means tested benefits like you do.

[Goingtoseed]

Anyone else would be guilty of deprivation under DWP rules. Its different it seems when you know how to work the system.
I think it is immoral to be able to give your wealth away then claim means tested benefits like you do.

Absolutely - if you deprive yourself of capital for the purposes of being able to obtain or increase the payment of a means tested benefit.
I doubt that anyone could suggest that my case is one like that. The Trust started 18 years before I claimed a means tested benefit. The purpose of putting capital into the Trust rests entirely on avoiding Inheritance Tax like the majority of sensible people do.

How it affected a means tested benefit came by way of a surprise and chance discovery.
It also came as a surprise to me that if and when either of us needed care later on in life, the capital in the Trust cannot be counted as available to pay for that care. Technically by good fortune in this case we are classed as having less than the £23,000 limit - the home is not jointly owned by us - we each own half of it. It would be rather difficult to value half a house if the other part owner refuses to sell.

[Raven]

How it affected a means tested benefit came by way of a surprise and chance discovery.
It also came as a surprise to me that if and when either of us needed care later on in life, the capital in the Trust cannot be counted as available to pay for that care. Technically by good fortune in this case we are classed as having less than the £23,000 limit - the home is not jointly owned by us - we each own half of it. It would be rather difficult to value half a house if the other part owner refuses to sell.

Brian will disagree with you on this bit, he says he's always being hassled to sell. 

[sparky]

Right or wrong there is a great temptation to avoid unfair care cost, where one person who has worked hard all their lives and ended up with a few bob, if going into care is subsidising in many cases people who have chosen a layabout lifestyle all there lives, which is why my house is 2/3rds owned by my live at home son following my wife's death, with me only owning a 1/3rd, but I am not in receipt of any benefits, just state and a small CS pension.

[Maddie Malone]

Years ago we were going to buy a house that a young couple was selling as they had got into debt .
They wanted to sell up pay off all their debts and move into a  Council  house with their 3 children  .
The sale fell through as the council refused to give them a council house saying they were effectively  making themselves homeless


Should the DWP look into people’s finances when they make a claim .

[Diasi]

Should the DWP look into people’s finances when they make a claim .

For all non-contributory benefits, yes.

[Ashy]

There is debt and then there is debt.  Take for example having a credit card or a store card, if you bought anything with it you are in debt. If your council tax bill has arrived, you are in debt, and if your electricity or gas is on the quarterly you are almost deefinitely in debt.

[klondike]

I use a credit card for most purchases because it pays a percentage of that spending back to me. I pay the entire bill off every month. Certainly that makes me technically a debtor but I have more in liquid assets than that debt ever amounts to. I doubt I am alone.

[Ashy]

Did the original post mean they owe more than they can pay (it didn't say that after all)? One in three sounds unlikely.

[klondike]

Depends how responsible they are. I read that we have over a trillion (or was it two) in credit card debt.

[Ashy]

The national debt is just under two trillion I think. Mind you we can't pay that one either.
edit: My error it is 2.3 trillion.

[klondike]

I looked it up and was way out. UK credit card debt is apparently about £70bn.