Setting up a Disabled Trust
A Disabled Trust offers a solution to meet the needs of someone who is the beneficiary of funds, but also enjoys a regular state benefit for the disability that he or she may have.
Very often due to the disability there has been a means test that ascertains how much the person should receive in the way of benefit on a regular basis. A disabled trust avoids some of the harsher tax consequences of leaving cash gifts.
If you are looking to set up a Disabled Trust, we cover across the UK – get in touch for advice.
Should you wish to leave this disabled person a legacy in the way of a cash gift, then after you pass away the sum of money received by the Beneficiary could affect the state benefit and even reduce this to nil having a negative result in leaving the gift in the first place. This is why a disabled trust is the best option.
We offer a free, no obligation consultation at a time to suit you, to discuss your needs.
You can always email us directly at firstname.lastname@example.org with any questions you have about our services.
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Consultations at a time to suit you
Estate Planning Consultant
STEP Registered & IPW Member
As meetings in person can be difficult with the current climate, we provide consultations over the phone and through video calls.
Contact us to book an appointment.
One solution is to leave the legacy to a Trust fund with appointed Trustees then depending on the terms of the Trust and the letter of wishes decided by you.
The Trustees are able to pay various amounts of money out of the Trust for the benefit of the intended disabled person, without affecting his state benefits.
There are rules governing the running of the Trust, however if managed correctly this will work really well for the intended beneficiary, that is why the choice of Trustees is a very important decision.
We can help you decide the best way to set up the Trust and give you the peace of mind knowing that you have provided for a disabled person without it affecting his or her regular state benefits that they receive.
Types of Disabled Trusts
You can set up a Disabled Trust and include this in your Will or you can choose to set up a Disabled Trust outside of your Will to commence immediately.
We are able to explain the different outcomes to these two scenarios and the impact on the disabled person.
We can explain any implications and the impact on any state benefits received. Disabled Trusts are treated favourably by the HMRC.
We will ensure that you you fully understand everything, and if you have any question, we are more than happy to help. During the process we will go through all the necessary paperwork and will be on hand to assist you with any related forms or documents.
Who qualifies as a vulnerable beneficiary?
A vulnerable beneficiary is either someone under 18 whose parent has died or a disabled person who is eligible for any of the following benefits (even if they do not receive them):
- Attendance Allowance
(either the care component at the middle or highest rate, or the mobility component at the highest rate)
- Personal Independence Allowance
- an increased disablement pension
- Constant Attendance Allowance
- Armed Forces Independence Payment
A vulnerable beneficiary can also be someone who is unable to manage their own affairs because of a mental health condition – check with a medical professional that it’s covered by the Mental Health Act 1983. [Gov.uk]
We are available from 9 am – 9 pm Monday to Friday and 9 am – 12:30 pm on Saturdays.
Give us a call or email us directly at email@example.com with any questions you have about our services.
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