If you have a child with a disability, planning for their future is vital. While it is understandably difficult to imagine a time when you won’t be around to care for your child, you will want to ensure that they are taken care of.
By including a Trust in your Will, you can provide for your disabled child when you are gone.
A Trust is often a better option than just leaving a specified amount in a Will. Especially where:
- Leaving your child with a large amount of money could put them in a vulnerable position. For example, making them a target of abuse from others
- Where your child is not able to deal with their own finances
- Where your child could lose their means-tested benefits.
Of course, you could leave all your money to someone you trust, on the basis that they look after your child. However, this option is fraught with difficulties.
Firstly, you never know how someone’s changing situation and finances (e.g. divorce, bankruptcy, etc.) could impact your child. The courts a full of such cases.
Secondly, if they die, their estate could go directly to their children (or other beneficiaries), leaving your child with nothing. Had you considered this option when choosing that trusted person?
Establishing a Trust helps to avoid such uncertainties and ring-fences the inheritance earmarked for your disabled child.
Trusts in Wills
When you create a Trust, you can establish it in the terms of your Will.
There are different types of Trusts and they each work in different ways. It pays to speak to a professional advisor to ensure the right Trust for your circumstances.
Where a disabled child has involved often the most suitable trust is a Disabled Person’s Trust.
Disabled Person’s Trusts
A Disabled Person’s Trust lets you leave some or all of your estate to a beneficiary who is unable to manage the inheritance themselves.
You establish the amount of the Trust and the people you want to manage the inheritance on behalf of the disabled beneficiary. These people are called the Trustees.
You can also leave a Letter of Wishes stating how you would prefer the Trust to be used. This will help the Trustees to carry out their duties as you would want.
A Disabled Person’s Trust does not affect any means-tested benefits, and the money cannot be used to pay off any debt (or be considered an asset in a divorce etc.). Furthermore, your child cannot be coerced into giving away the assets in the Trust or using the money for other purposes.
If you have a disabled child and would like to protect them in your Will, speak to David Frederick by calling 020 8670 0917 or email email@example.com.