Disabled person trusts are legal arrangements designed to provide financial security and support for individuals with disabilities throughout their lives. These trusts play a vital role in ensuring that individuals with disabilities have access to the resources they need for their care, support, and well-being. However, there may be circumstances where it is necessary to challenge a disabled person trust. This article will explore the legal options available for contesting such trusts.
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Understanding Disabled Person Trusts
A disabled person trust is a legal arrangement that holds and manages assets for the benefit of an individual with a disability. These trusts can be created in various ways, including:
- Lifetime Trusts: Established during the lifetime of the individual with a disability.
- Will Trusts: Created through a will and come into effect after the individual’s death.
- Personal Injury Trusts: Designed to manage compensation received for personal injuries, particularly those suffered by children.
The primary purpose of a disabled person trust is to:
- Protect assets: Safeguard assets from potential threats such as deprivation of benefits, care home fees, and potential claims from creditors.
- Provide financial support: Ensure the individual has access to the funds they need for their care, support, and daily living expenses.
- Promote independence: Enable the individual to live as independently as possible.
Grounds for Contesting a Disabled Person Trust
While disabled person trusts are intended to benefit the individual with a disability, there may be situations where a challenge to the trust is warranted. Some of the grounds for contesting a disabled person trust include:
- Lack of Mental Capacity:
- If the individual who created the trust lacked the mental capacity to understand the nature and effect of the trust at the time of its creation, the trust may be considered invalid.
- This ground for challenge often arises in situations where the individual suffered from a cognitive impairment or was unduly influenced.
- Evidence of lack of mental capacity may include medical records, witness testimony, and expert opinions from medical professionals.
- Undue Influence:
- If the individual who created the trust was unduly influenced by another person, the trust may be deemed invalid.
- Undue influence occurs when a dominant individual exerts excessive pressure or coercion on the settlor (the person creating the trust) to influence their decision-making.
- Signs of undue influence may include:
– Isolation of the settlor from family and friends.
– Unnatural or suspicious provisions within the trust document.
– Sudden changes in the settlor’s behaviour or testamentary intentions.
- Fraud:
- If the trust was created through fraudulent means, such as forgery or misrepresentation, it can be challenged.
- This may involve situations where the settlor was deceived into signing a trust document that did not reflect their true intentions.
- Evidence of fraud may include forged documents, witness testimony, and expert evidence.
- Lack of Proper Execution:
- If the trust was not properly executed in accordance with legal requirements, it may be deemed invalid.
- This can include issues such as:
– Lack of proper witnesses to the trust document.
– Insufficient consideration for the trust property.
– Failure to comply with the formalities required for the creation of a valid trust.
- Breach of Trust:
- While not directly a challenge to the validity of the trust itself, trustees can be held liable for breaches of trust.
- This can occur when trustees:
– Act outside the scope of their powers.
– Fail to exercise reasonable care and skill in managing trust assets.
– Make improper distributions from the trust fund.
– Engage in conflicts of interest.
- Variation of Trusts:
- In some cases, it may be necessary to vary the terms of a disabled person trust.
- This may be required to:
– Address unforeseen circumstances.
– Ensure the trust continues to meet the changing needs of the beneficiary.
– Prevent the trust from failing.
– The court has the power to vary trusts in certain situations, such as when the original intentions of the settlor can no longer be fulfilled.
The Legal Process of Contesting a Disabled Person Trust
Contesting a disabled person trust is a complex legal process that should only be undertaken with the guidance of experienced legal professionals. The process typically involves:
- Gathering evidence: This may include obtaining medical records, financial documents, witness statements, and expert opinions.
- Filing a court application: The application must clearly outline the grounds for the challenge and the desired outcome.
- Discovery process: This involves exchanging information and documents between the parties involved in the litigation.
- Court hearings: The court will hear arguments from both sides and consider all the evidence presented.
- Judgment: The court will issue a judgment determining the validity of the trust and any necessary orders.
The Importance of Expert Legal Advice
Contesting a disabled person trust can have significant legal and financial implications. It is crucial to seek expert legal advice from a specialist solicitor with experience in trust and estates law.
Blackstone Solicitors has a team of experienced lawyers who can provide expert guidance on all aspects of disabled person trusts, including:
- Trust creation and administration.
- Contesting the validity of a trust.
- Variation of trust terms.
- Protecting the rights of beneficiaries.
We understand the complexities of disabled person trusts and can provide tailored advice to meet your specific needs.
How we can help
We have a proven track-record of helping clients create Trusts. 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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