If you have a friend or a family member that has additional needs, and you want to help them financially, either whilst you are alive or under a will, then you may wish to consider setting up what is known as a ‘Disabled Person’s Trust’. You can also set one up for yourself if you think that you may become disabled at a later point.
The definition of ‘disabled’ for the purposes of these trusts is quite wide, and includes anybody that receives or qualifies to receive the daily living element of Personal Independence Payment.
The major advantage of this sort of trust over other types of trust is that they are subject to lower taxation than other types of trust, both when they are being set up, and then as they are being run. Depending on how the trust is worded, it can also mean that the money inside the trust is protected from being taken into account for the purposes of means assessing the disabled person’s benefits or care funding.
These trusts are different to Personal Injury Trusts.
If you would like to discuss trusts for disabled and vulnerable persons further, please do not hesitate to get in touch.
