Caring for a loved one with a disability can bring many challenges. Aside from the day-to-day concerns of making sure they are receiving the appropriate care, there is also the added worry about making sure they are financially protected and secure when you are no longer around.

Sally Johnson, Deputy Head of Wills, Trusts & Probate, comments: 

One way to ensure your loved one is financially protected is to place assets in a trust, either during your lifetime or on death, by your Will.  A trust is a legal structure where the ownership of assets passed to the trust are owned and managed by the trustees.

So, while many people consider trusts to be a means of reducing an inheritance tax liability, they are now being used more and more as a form of protection. They are an ideal way of benefitting a disabled person, who perhaps lacks the capacity to manage assets or who may be vulnerable.  

Utilising a trust can ensure that money is not dissipated, either as a result of an individual’s own behaviour, or because they are vulnerable to exploitation by others. Whilst the trustees retain the control over the assets held by the trust, they also have the discretion to make sure funds are available, not only for day to day living expenses and care, but also for ‘extras’, such as holidays or entertainment.

There are several types of trusts which can be used, dependent on a particular family’s circumstance. 

Factors such as the need for flexibility within the trust for payments to be made to more than one potential beneficiary, or the need to maximise entitlements to Welfare Benefits, coupled with the amount of money that is likely to be put into the trust and the tax treatment of the trust will effectively dictate which trust is most suitable for your needs.

Due to the various factors that need to be considered it is important that you seek appropriate advice. The specialist knowledge of our team at Jackson Lees can assist in guiding you through the process, ensuring that the most appropriate type of trust is chosen, taking into account both tax and all other relevant factors.

If you would like to talk to one of our specialist advisers, please call us on 0151 342 6273, request a callback at your convenience or message us your enquiry.