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Trusts for the Disabled
If you have a child, or are responsible for a dependent who has a disability, JMW can help you put in place measures to help them manage in the event that something happens to you.
A Disabled Person’s Trust allows you to put away assets to be used for the recipient’s benefit during their lifetime without affecting their right to receive means-tested state benefits. This can include covering expenses, such as:
- Daily living costs
- Care fees
- Accommodation fees
A vulnerable beneficiary trust is also taxed differently to other trusts, meaning there can be advantages with regards to Income Tax, Capital Gains Tax and Inheritance Tax. Our expert solicitors create trusts with the minimum amount of hassle, giving you the confidence that your wishes will be fulfilled and your child or dependent will be taken care of.
How JMW Can Help
Our specialist lawyers have years of experience in creating trusts for the disabled. We will assess your personal circumstances to build a trust that is tailored precisely for you and your dependents, giving you both confidence and peace of mind.
The JMW wills and trusts team is recommended by charity organisations as experts in drafting trusts for families. We are highly experienced in setting up trusts that cater for children and dependents who have special needs, including a physical or learning disability.
Can I Qualify For a Disabled Person’s Trust?
To qualify for a Disabled Person’s Trust, a disabled person is classified as:
- A person unable to administer their property or manage their affairs because of mental disorder as determined by the Mental Health Act 1983
- A person in receipt of attendance allowance or disability living allowance (DLA) by virtue of entitlement to the care component at the highest or middle rate
- A person in of a personal independence payment
- A person in receipt of an increased disablement pension
- A person in receipt of constant attendance allowance
- A person in receipt of armed forces independence payment
A trust can be set up either during your lifetime or by will.
Should I Set Up a Discretionary Trust or a Disabled Person’s Trust?
A Discretionary Trust is managed by appointed trustees who decide who can become a beneficiary. The trustees also determine when and how the beneficiary will receive any inheritance from the trust.
This type of trust is useful if you are currently unsure as to how you wish your estate to be distributed, or if there are factors that could affect the trust that you cannot be sure of when making your will. The trustees who you appoint will be able to make these decisions on your behalf.
While this type of trust can be useful when considering the needs of a disabled person, and may be beneficial from an Inheritance Tax perspective, there are also drawbacks. For example, a discretionary trust can attract higher rates of Income Tax and Capital Gains Tax. If you are unsure as to which trust is right for you, contact our highly experienced team of solicitors who will provide guidance tailored to your specific circumstances.