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Disabled Trusts

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.

We also provide advice and can set up property protection trusts and discretionary trusts.

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.

0800 689 0923

You can always email us directly at info@njlegalservices.co.uk with any questions you have about our services.

Review from June Agius 

Very friendly and professional. Open and honest. A really great service. Was really happy with the service we received.

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    Consultations at a time to suit you

    Nigel Johnson

    Nigel Johnson
    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.


    Trust Funds

    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.

    0800 689 0923

    Give us a call or email us directly at info@njlegalservices.co.uk with any questions you have about our services.

    Client reviews

    5.0 rating

    Karen – I cannot express enough how Nigel helped mum before she passed and then assisted me with the attainment of probate afterwards. Enstively handling each step of the way he also had expert knowledge. And…to top it all, his charges are inexpensive when compared to solicitors, especially here in London. I paid 20% when compared to other fees quoted and doesn’t mean less service. Nigel is someone who serves and doesn’t believe in overly charging. I cannot recommend Nigel and his services more.

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    David & Linda Molden – Excellent, efficient service with everything explained by Nigel when we asked questions. Would highly recommend using this service.

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    Richard Greasley – We were recommended by a friend to use Nigel and the service has been fantastic. We had a virtual meeting to discuss our requirements and then within a few days the Wills were typed up by Nigel for me and my Wife to review. Would highly recommend and use for other needs in the future.

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    Martin Y – Excellent service. Nigel provides all the information required in a professional and patient way. Would highly recommend him.

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    Catherine Hicks – I contacted Nigel during the pandemic so all our discussions had to be held over the telephone. He was very professional, friendly and nothing was too much trouble. Any questions I needed to ask were answered quickly. I could recommend him for his services to anyone who may be interested.

    5.0 rating

    Mr Fred Spencer – A friend of mine sent me the document written by Nigel, which was mainly about reducing the care fees that may be charged by our local council if either myself, or my wife needed to go into care. I found the document to be very informative and easy to understand. I then decided to talk to Nigel about what we may need to do in terms of our own Estate planning. Within minutes of talking to Nigel, he made me feel that he really had our interests at heart and he gave me quite a bit of free advice. As a result of this advice, we decided to commission NJ Legal Services to draw up new wills for us both and to change the ownership details of our property with the Land Registry. I would not hesitate to recommend NJ Legal Services and obviously, Nigel in particular, to friends and family. A truly easy and friendly experience.

    5.0 rating

    Mrs Susan Hammerton – We were visited at home by Nigel who was friendly and very professional. His help and advice was given with patience and courtesy. Everything was explained perfectly. We are very pleased to recommend NJ Legal services.

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