If you have a family member or loved one who is vulnerable due to age, illness, disability, or other circumstances, you may have considered how to protect their financial future. A Vulnerable Person Trust (VPT) can be a valuable tool for ensuring that their assets are managed responsibly and used to meet their needs.
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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 Vulnerable Person Trust?
There are several reasons why a VPT might be beneficial for your loved one:
- Protection from Exploitation: Vulnerable individuals are often at risk of financial exploitation. A VPT can help to protect their assets from unscrupulous individuals who may seek to take advantage of their situation.
- Financial Security: A VPT can provide a reliable source of income to cover the costs of living, healthcare, and other expenses. This can help ensure that your loved one has the financial resources they need to maintain a good quality of life.
- Decision-Making Capacity: If your loved one is no longer able to make sound financial decisions, a VPT can empower a trusted individual or organization to manage their assets on their behalf.
- Estate Planning: A VPT 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 loved one’s assets are managed efficiently and effectively.
Types of Vulnerable Person Trusts
There are several different types of VPTs, 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 loved one’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 vulnerable person reaching a certain age or becoming incapacitated.
- Lifetime Interest Trust: This type of trust grants the vulnerable 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 Vulnerable Person Trust
When considering whether to set up a VPT, there are several important factors to keep in mind:
- Cost: Setting up and administering a VPT 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 VPT 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 vulnerable person. Consider appointing trusted family members or friends, or consider using a professional trustee service.
- Review and Update: As your loved one’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 VPT. They can help you:
- Assess Your Needs: A solicitor will work with you to understand your loved one’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 loved one’s circumstances change.
Conclusion
A VPT can be a valuable tool for protecting the financial interests of vulnerable individuals. By carefully considering the options available and seeking professional advice, you can create a plan that provides your loved one with the security and support they need.
If you’re interested in learning more about VPTs 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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