The Benefits of a Disabled Person’s Trust

Parents of disabled children often believe that leaving their child’s inheritance to a capable sibling means it’ll be safe because they know they can trust them to look after their sibling. In most cases, this is fine. However, let’s imagine for a moment that everyone stores their money and assets in porcelain piggy banks.

As we go through life, we need access to our piggy banks. When we marry, we combine our piggies with our partners to make a bigger one. Subsequently, if we divorce, we have to smash that one open, split the contents, and start over. When life is difficult, debt and bankruptcy sometimes get to our piggy banks, too.

Creating a Secure Financial Future

But what if we could create an extra piggy bank and put it high up on the shelf, where only the people you trust can reach it? This can also hold instructions on how the assets are utilised, either paying for a specialised school or care or paying for accessible equipment in the home. A Disabled Person’s Trust does this. It allows you to safely place assets for a disabled child without mixing those assets with others.

Safeguarding Inheritance and Benefits

A Disabled Person’s Trust, also known as ‘trusts for vulnerable beneficiaries’, extends its benefits not just to your child but to the entire family. It enables grandparents, aunts, and uncles to gift assets from their estates, safeguarding any means-tested benefits your child may receive. Additionally, these trusts provide tax advantages, allowing you to allocate your estate more effectively towards caring for your loved ones.

Who Can Benefit from a Disabled Person’s Trust?

For trust purposes, those with a physical or mental disability that affects their ability to manage their own finances and who qualify under a benefits test have the possibility of being the beneficiary of a disabled or vulnerable person’s trust. 

Parents of disabled children can set up this trust either in their will or during their lifetime. If you believe this will benefit a loved one, please get in touch.