Trusts for vulnerable people
Trusts are widely used to protect assets and their use is particularly important in protecting the financial stability of a disabled or vulnerable person throughout their lifetime. Where the beneficiary of a trust is disabled or vulnerable such trusts qualify for special tax treatment providing certain conditions are satisfied. Trusts for the disabled or vulnerable will also protect the beneficiary’s entitlement to means tested benefits.
It is, therefore, very important to seek legal advice when looking to create such trusts especially when making a will. A badly prepared will could result in the disabled person’s benefits and Local Authority funding being stopped. A deputy application to the court of protection may also have to be made so that someone is appointed to look after the vulnerable person’s financial affairs which can be expensive. There may also be inheritance tax consequences and the vulnerable person’s legal representative may make a claim against the estate for financial provision.
It is, therefore, very important that specialist advice is sought when creating such trusts to ensure that the future security of a relative who is unable to manage their own financial affairs is protected.
For anything further, one of our specialists would be delighted to meet you either in our office or in your own home to talk through your requirements and answer any questions. Please contact us at any time.