A disabled person’s trust is a legal arrangement designed to provide financial security and support for individuals with disabilities. These trusts can be established during a person’s lifetime or after their death, and they offer a range of benefits that can significantly improve the quality of life for those who depend on them.
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For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of disabled person trusts and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
Step 1: Assess the Beneficiary’s Needs
The first step in creating a disabled person’s trust is to assess the beneficiary’s current and future needs. This will help you determine the appropriate type and size of the trust. Consider factors such as:
- Living expenses: Housing, food, utilities, transportation, etc.
- Healthcare costs: Medical insurance, medications, therapies, etc.
- Education expenses: Tuition, books, supplies, etc.
- Support services: Personal care assistants, respite care, etc.
- Future goals: Employment, independent living, etc.
Step 2: Choose the Right Type of Trust
There are several types of disabled person’s trusts available, each with its own unique characteristics and benefits. Some common options include:
- Lifetime Disability Trust: Created during the lifetime of the settlor (the person who establishes the trust).
- Testamentary Disability Trust: Created after the settlor’s death and included in their will.
- Millennium Trust: Designed to protect the means-tested benefits of individuals with disabilities.
- Qualified Trusts: Meet specific eligibility criteria for government benefits.
Step 3: Determine the Trust’s Assets
Once you have chosen the type of trust, you will need to determine the assets that will be placed in the trust. These can include cash, investments, property, or other valuable assets.
Step 4: Select a Trustee
A trustee is responsible for managing the trust’s assets and making decisions on behalf of the beneficiary. It is important to choose a trustee who is trustworthy, reliable, and has the necessary skills and experience.
Step 5: Draft the Trust Document
The trust document outlines the terms and conditions of the trust, including the beneficiary’s rights and responsibilities, the trustee’s duties, and the rules for distributing the trust’s assets.
Step 6: Fund the Trust
Once the trust document is drafted, you will need to fund the trust by transferring the assets to the trustee.
Step 7: Review and Update the Trust
It is important to review and update the trust periodically to ensure that it continues to meet the beneficiary’s needs and comply with applicable laws.
Additional Considerations
- Asset Protection: If asset protection is a primary concern, consider using an irrevocable trust or a qualified disability trust.
- Tax Implications: Trusts can have tax implications for both the settlor and the beneficiary. Consult with a tax advisor to understand the potential tax consequences.
- Succession Planning: Have a plan in place for the eventuality that the trustee may become incapacitated or pass away.
The Role of a Solicitor
A solicitor can play a vital role in establishing and managing a disabled person’s trust. They can:
- Advise on the most appropriate type of trust for the beneficiary’s circumstances.
- Draft the trust documents to ensure that they comply with legal requirements and reflect the settlor’s intentions.
- Assist with the funding of the trust.
- Provide ongoing guidance and support to the trustee.
- Represent the beneficiary’s interests in any legal matters related to the trust.
Blackstone Solicitors is committed to providing expert legal advice and support to individuals and families who are considering establishing a disabled person’s trust. Our team of experienced solicitors can help you navigate the complexities of trust law and ensure that your loved ones are adequately protected.
How we can help
We have a proven track-record of advising upon all aspects of private client work. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.to incorporate, what kind of ownership
How to Contact Our Private Client Solicitors
It is important for you to be well informed about the issues and possible implications of setting up a Trust. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Trust solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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