Planning your Will often involves thinking carefully about how your loved ones will be provided for in the future. Where a beneficiary may be vulnerable, additional planning may be needed to ensure their inheritance is protected and managed appropriately.
Making provisions for a vulnerable beneficiary can cause great worry. Testators often worry about the impact an inheritance could have on means-tested benefits. They may also be concerned about how the beneficiary will manage the funds.
Of course, there can also be concerns about the potential for future financial abuse.
A vulnerable person is someone who is either under the age of 18 whose parents has died. Or a disabled person eligible for certain qualifying benefits (though they don’t actually have to receive them). Alternatively, they can also be someone who is unable to manage their own money and affairs due to a mental health condition.
It is possible to include a trust in your Will which makes provision for a vulnerable person without impacting their means tested benefits, and where the funds are held by the trustees for the vulnerable person’s benefit. These sorts of trusts also attract special tax treatment.
These trusts can be a great way of providing for any vulnerable people in your life. Whilst offering them the protection they need should they come to inherit from you.
Of course, it is important that the person still qualifies as a vulnerable person at the date of your death in order to benefit, so this should be kept under review.
It is really important that such a provision is made in a Will, as the same protection is not afforded by the Intestacy Rules – the rules that apply if you die without leaving a Will.
You will also be able to appoint the Trustees who you want to look after the money for the vulnerable person yourself. Thereby making sure that they are people who you trust.
How we can help
It is always sensible to speak to a qualified legal professional about your family and financial circumstances. To ensure that you are receiving the most appropriate advice tailored to your specific needs.
If you would like to speak to us about preparing your Will or require more information on Trusts. Please contact me on 01283 214231 or via email at C.Day@timms-law.com.
