Disability allowance & savings

Makkapakka01

Long time reader, 1st time poster - so bear with me if this is in the wrong place.
I have a question re personal savings affecting payment of disability allowance. My brother (lets call him David) is almost 40 and has learning difficulties since birth. He went to a special school and upon leaving was employed in a HSE scheme, where he receives a token payment and his weekly disability allowance. There is no question-mark over his disability, he would not be able to work in a "normal" environment.
However, my parents decided in the 90s to try to secure his financial well-being. They bought some property and sold it again at a good profit and always ear-marked this money for David. My siblings and I are university-educated with so-called careers so their thinking was we would never be as vulnerable as David & they wanted to create a little nest-egg for him in the event of his HSE scheme ever being cancelled.
This profit is in the region of 120K. At the moment it is in my parent names but they want to transfer it to David so that it is above board and clear. They are elderly and I think want things neat & tidy in the event of their deaths.
So my question is... would David's disability allowance be affected by receiving such a large sum? Please remember that he can never work in a normal capacity. His allowance and his entitlements (medical card, free travel) don't come up for regular scrutiny as far as I know, but who is to know when that might change with.
This isn't about sponging or avoiding paying taxes. My parents worked hard to raise that money for him and just want the best for him in the event of their deaths. I would just appreciate some honest answers from anyone else who has been in this position. Thanks.

Shane732

Hi Makkapakka, welcome to boards.ie. Please have a read of the information contained in the newbies forum if you haven't already done so.

I'm going to move this thread to State Benefits as it's related to disability benefit as opposed to taxation.

Just to cover off the Capital Acquisitions Tax position - the current CAT threshold for a son/daughter is €250,000. You'll need to ensure that David hasn't received previous gifts from your parents that results in the €120,000 your parents intend to give him results in him exceeding the €250,000 limit.

cee_jay

Anything over €50000 is assessed as means for Disability Allowance as follows:


The formula for assessing the means from capital for Disability Allowance is as follows:

Capital Weekly means assessed
First €50,000 Nil
Next €10,000 €1 per €1,000
Next €10,000 €2 per €1,000
Balance (any capital over €70,000) €4 per €1,000

rosehip

Hi MakkaPakka,

A few sundays ago, on radio one around lunchtime there was a programme about services being cut to disabled people etc and as i was listening i heard a woman explaining how, under current irish legislation, anyone considered to be intellectually disabled cannot hold money or property in their own right, even if they are an adult.

This activist announced that the law used is a law from the the 19th century and hasn't been updated since. I remember as i was very shocked and as i have a down syndrome adult cousin that this would affect.

Apparently, there is a new law going through the Dail soon to resolve this but i don't know what it involves.

If someone more familiar with the net can find that programme for you, you could listen to it. I think i remember that a trustee must hold money etc for now.

I think you should get in contact with disability groups and find out what is allowed/disallowed or is changing. Also, a good solicitor who deals with estate planning would also know. Maybe try to get a recommendation for a good solicitor off a national disability group.

Hope this helps,
Regards,
Rose