My clients appear eleigble, but later revealed they have owned a valuable boat for many years, on which they used to live. The boat is no longer their home, and 2-3 years ago they say they transferred its ownership to their son (now aged 11 - not resident with them as severely disabled and in residential care accom). Clients meet all costs relating to the boat still, and use it as a family to take their son out. Should this be considered an asset for LSC eligibility purposes despite the fact they maintain that it is 'owned' by their son? Can anyone point me to the right answer? Not finding it in volume 2F!
Post by Colin Henderson on Jul 14, 2010 14:34:23 GMT
I'd be very dubious about the assertion that a child can "own" anything bigger than a toy boat!
The classic way of putting assets out of reach the taxman/DWP/LSC is to put them in a trust. If there is a properly constituted trust with min 2 trustees holding the assest on behalf of the child as beneficiary then no doubt your client will be able to show you the trust deed. Otherwise it reeks of deprivation of assets by the parents and you may have to advise them the DWP and HMRC will think the same as you show them the door.
Thank you both! Confirms my thinking - and yes, I think deprivation of capital is exactly what it is! Very cagey about it (denied having any assets when filling in CW1) and the existance of the boat only came out when I asked about mooring fees on bank statement! No trust deeds....
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