Making provision for a disabled or vulnerable beneficiary can cause great worry for clients.
Clients are often concerned about many aspects such as impacting means test benefits, opening the beneficiary up to future financial abuse or the impact of controlling partners. Concerns can also arise regarding the impact that a large sum of money could have on a beneficiary with addiction problems. But it's important to remember that not making a Will, or not making proper provision in a Will can be just as detrimental.
If a person dies without leaving a Will then the Intestacy Rules apply. This means that the beneficiary could go on to inherit part or all the estate anyway. Ensuring that a tailor-made Will is prepared to essential in order to protect both the beneficiary and the estate.
Why use a trust?
The use of trusts is a great way to afford some protection to disabled or vulnerable beneficiaries. They also provide valuable peace of mind to clients.
Trusts can be tailor-made and incorporated into a Will. Including a trust will allow the person making the Will to choose who they would like to look after the money. It will also allow them to retain some degree of control over how the money is distributed.
Clients are also encouraged to prepare a detailed ‘letter of wishes’. A letter of wishes usually sets out how the money should be spent. The outlined wishes can then be considered by the people entrusted to look after the money once they have gone.
Special Trusts
Special trusts can be created especially for a disabled beneficiary, allowing for the entirety of a trust to be held for an individuals benefit.
They do not impact any means tested benefits and mean that trusted individuals are put in charge.
Trusted individuals can then make sure that inherited money is spent appropriately and looked after throughout a beneficiary’s life. Something that the beneficiary may not be able to do for themselves.
For further information please give me a call on 01530 564498 or e-mail me at c.day@timms-law.com.
