If you have a family member with a disability, you may have considered how to ensure their financial security and well-being after you’re no longer around. One option is to establish a disabled trust. A disabled trust is a legal arrangement that allows you to manage your assets for the benefit of a disabled person. It can provide a valuable safety net, helping to cover the costs of their care and maintain their quality of life.
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For a free initial discussion on how we can help you deal with the legal implications of creating a Disabled Person Trust, get in touch with us today. We are also experienced in dealing with all aspects of Wills and Probate and 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 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.
Why Consider a Disabled Trust?
There are several reasons why setting up a disabled trust might be beneficial for your family:
- Protection of Benefits: Receiving certain benefits, such as Disability Living Allowance (DLA) or Personal Independence Payment (PIP), can be crucial for individuals with disabilities. However, owning assets can sometimes affect eligibility for these benefits. A disabled trust can help protect these benefits by holding assets in the trust’s name instead of the disabled person’s.
- Financial Security: A disabled trust can provide a reliable source of income to cover the costs of living, healthcare, and other expenses. This can help ensure that your family member has the financial resources they need to live independently and maintain a good quality of life.
- Flexibility: Disabled trusts can be tailored to meet the specific needs of your family member. You can decide how the trust’s funds are used, whether they are paid out regularly or only for specific purposes. This flexibility allows you to create a plan that best suits your family’s circumstances.
- Estate Planning: A disabled trust can be an important part of your estate plan. It can help to avoid the complexities and potential delays associated with probate, ensuring that your family member’s assets are managed efficiently and effectively.
Types of Disabled Trusts
There are several different types of disabled trusts, each with its own advantages and disadvantages. Some common options include:
- Discretionary Trust: This type of trust gives the trustees broad discretion over how the trust’s funds are used. This can be beneficial if your family member’s needs may change over time.
- Accumulation and Maintenance Trust: This trust allows the trustees to accumulate income and capital until a specified event occurs, such as the disabled person reaching a certain age or becoming incapacitated.
- Lifetime Interest Trust: This type of trust grants the disabled person a lifetime interest in the trust’s income and capital. However, the trust’s assets must eventually pass to other beneficiaries.
Key Considerations When Setting Up a Disabled Trust
When considering whether to set up a disabled trust, there are several important factors to keep in mind:
- Cost: Setting up and administering a disabled trust can involve legal fees and other costs. It’s important to weigh the benefits of the trust against these costs.
- Tax Implications: The tax implications of a disabled trust can vary depending on the type of trust and the specific circumstances. It’s advisable to seek professional advice from a tax specialist.
- Trustee Selection: Choosing the right trustees is crucial to ensure that the trust is managed effectively and in the best interests of the disabled person. Consider appointing trusted family members or friends, or consider using a professional trustee service.
- Review and Update: As your family member’s circumstances change, it may be necessary to review and update the terms of the trust. This is especially important if there are significant changes to their health or financial situation.
The Role of a Solicitor
A solicitor can provide invaluable assistance in setting up and managing a disabled trust. They can help you:
- Assess Your Needs: A solicitor will work with you to understand your family member’s specific needs and circumstances.
- Choose the Right Trust: They will advise you on the most appropriate type of trust for your situation.
- Draft the Trust Document: A solicitor will draft the trust document, ensuring that it complies with all legal requirements.
- Provide Ongoing Support: They can provide ongoing support and advice as your family member’s circumstances change.
Conclusion
Setting up a disabled trust can be a valuable way to provide for the financial security and well-being of a family member with a disability. By carefully considering the options available and seeking professional advice, you can create a plan that meets your family’s unique needs.
If you’re interested in learning more about disabled trusts or would like to discuss your specific circumstances, please contact Blackstone Solicitors. Our experienced team can provide personalized advice and guidance to help you make informed decisions.
How we can help
We have a proven track-record of helping clients create Trust. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Wills and Probate Solicitors
It is important for you to be well informed about the issues and possible implications of creating a Trust. However, expert legal support is crucial in terms of ensuring your wishes are met as you would want them to be.
To speak to our Wills and Probate 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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