Disabled Person's Trust Wills
Helping Protect The Future Of Someone You Love
If you have a disabled child, grandchild or loved one, one of the biggest questions you may ask yourself is:
What happens when I'm no longer here?
How do I provide financial security?
How do I ensure they are looked after?
How do I leave them an inheritance without unintentionally creating problems?
These are deeply personal questions. And there is rarely a one-size-fits-all answer.
At Trafalgar Estate Planning, we help families explore arrangements designed to provide long-term protection and support for disabled beneficiaries whilst helping preserve the dignity, independence and quality of life of the person you care about most.
A COMMON MISUNDERSTANDING
Many families mistakenly believe that a disabled person cannot inherit directly without losing their benefits.
As a result, they often consider leaving the inheritance to somebody else to "look after" on the disabled person's behalf.
Whilst this may appear simple, it can create obvious risks.
The money legally belongs to the person who inherited it.
Circumstances change.
Relationships change.
They may:
Divorce.
Become bankrupt.
Die unexpectedly.
Experience financial difficulties.
Simply decide to use the money differently from how you intended.
For their families, this creates uncertainty.
A Disabled Person's Trust may offer a better solution.
WHAT'S THE DIFFERENCE?
A Vulnerable Beneficiary Trust is a broad term used to describe trust arrangements designed to protect beneficiaries who may be vulnerable due to personal, financial or health-related circumstances.
A Disabled Person's Trust is different.
It is a specific type of trust recognised by tax legislation for qualifying disabled beneficiaries.
As well as helping protect benefits and provide ongoing support, a Disabled Person's Trust may offer tax advantages that are not available through some other trust arrangements.
This can make it a particularly valuable option for some families.
However, every family is different and professional advice is essential.
WHAT RISKS CAN A DISABLED PERSON'S TRUST HELP ADDRESS?
Potential concerns may include:
✓ Loss of entitlement to certain means-tested benefits.
✓ A disabled beneficiary being unable to manage a substantial inheritance.
✓ Funds being used in a way that does not benefit the disabled person.
✓ Financial exploitation or undue influence by others.
✓ Family disagreements regarding how funds should be managed.
✓ Long-term care and support needs not being adequately provided for.
✓ The inheritance being depleted too quickly.
✓ A lack of flexibility as circumstances change over time.
✓ Allowing assets to be held specifically for the benefit of the disabled beneficiary.
✓ Helping preserve entitlement to certain means-tested benefits where appropriate.
✓ Providing ongoing financial support throughout the beneficiary's lifetimee.
HOW CAN A DISABLED PERSON'S TRUST HELP?
A Disabled Person's Trust may help by:
✓ Allowing trustees to manage funds on behalf of the beneficiary.
✓ Providing flexibility to adapt to changing care, health and support requirements.
✓ Helping ensure funds are used to enhance the beneficiary's quality of life..
✓ Offering protection from financial exploitation or poor financial management.
✓ Potentially providing favourable tax treatment for qualifying beneficiaries.
✓ Providing reassurance for parents, grandparents and other family members concerned about the beneficiary's long-term future.
PEACE OF MIND FOR THE FUTURE
Disabled Person's Trusts can be particularly valuable where family members want to ensure that a disabled loved one remains financially secure throughout their lifetime without unnecessarily jeopardising benefits or support arrangements.
The objective is not to restrict the beneficiary. It is to provide:
Protection.
Support.
Dignity.
Financial Security.
Whilst ensuring that the inheritance remains available for their benefit throughout their lifetime.
LET'S TALK ABOUT YOUR FAMILY
If you would like to discuss how best to protect a disabled loved one, we would be pleased to help. Book your free Legacy Review and explore the options available.
No obligation. Just expert guidance and straightforward advice
THE TRAFALGAR COMMITMENT
Professional memberships and codes of practice are important. But ultimately, what matters most is how our clients are treated.
Our approach is built on straightforward advice, long-term relationships and recommendations that are carefully considered from a legal, financial and family perspective.
We believe estate planners should provide more than just documents.
That is why we are committed to:
✓ Acting honestly and with integrity
✓ Providing clear and understandable advice
✓ Treating clients fairly at all times
✓ Protecting your personal information
✓ Continuing to develop our professional knowledge
✓ Delivering solutions that are right for you and your family
