LMS, Re (settlement of property into a trust) [2020] EWCOP 52 (11 September 2020)

LMS, Re (settlement of property into a trust) [2020] EWCOP 52 (11 September 2020)

The court authorised the settlement of LMS's inheritance into a disabled person's trust on the basis that the significant operative purpose is to better effect the grandfather's intention to benefit LMS financially, not to deprive her of capital for means-tested benefits. The court found that this does not offend public policy and is in LMS's best interests, subject to amendments ensuring LMS retains some control over the trust.

Citation
[2020] EWCOP 52
Parties
Applicant: FSS; First Respondent: LMS; Second Respondent: MS; Third Respondent: TW; Fourth Respondent: JR; Fifth Respondent: RR
Jurisdiction
England and Wales
Judgment Date
11 September 2020
Procedural Posture
Court of Protection Property and Affairs Application / Judgment on Application for Settlement of Property Into Trust
Outcome
Application granted
Legal Topics
Disabled Person's Trust, Means Tested Benefits, Best Interests Decision, Deprivation of Capital, Lasting Power of Attorney, Inheritance
Mental Capacity Trusts and Estates Social Security Disabled Person's Trust Means Tested Benefits Best Interests Decision Deprivation of Capital Lasting Power of Attorney +1 more

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Parties

FSS

Applicant

LMS

First Respondent

MS

Second Respondent

TW

Third Respondent

JR

Fourth Respondent

RR

Fifth Respondent

Procedural Posture

Court of Protection Property and Affairs Application / Judgment on Application for Settlement of Property Into Trust

Legal Issues

  1. 1 Whether the court should authorise settlement of LMS's inheritance into a disabled person's trust
  2. 2 Whether such settlement would amount to deprivation of capital for means-tested benefits
  3. 3 Whether the proposed trust is in LMS's best interests

Ratio Decidendi

The court authorised the settlement of LMS's inheritance into a disabled person's trust on the basis that the significant operative purpose is to better effect the grandfather's intention to benefit LMS financially, not to deprive her of capital for means-tested benefits. The court found that this does not offend public policy and is in LMS's best interests, subject to amendments ensuring LMS retains some control over the trust.

Court Disposition

Application granted

Orders

  • Settlement of LMS's inheritance into a disabled person's trust authorised, subject to amendments ensuring LMS (or the court on her behalf) retains power to appoint and remove trustees and to direct disposition of trust assets after her death.
  • Order and deed to include provision that any shortfall in assessed costs from LMS's current assets is to be met from sums received from the grandfather's estate, with the remainder settled on the trust.