Do you have someone in your family who you consider to be vulnerable? Someone who, for various reasons, may struggle to manage a large sum of money. Is it your son or daughter who may be physically disabled, or who has Downs Syndrome, ADHD, Autism or Aspergers or another illness which may affect mental capacity?
Do you worry about how you could safely leave them money after you are gone? You know they could benefit from an inheritance, and maybe you also want to treat all your children the same, but how would they cope with the sudden inheritance of a large sum of money – and importantly, how would that affect the benefits they receive?
Did you realise that you could leave money in Trust for them, to be looked after by people you appoint in your Will – people you would trust to look after the money, to invest it wisely and to make sure it is advanced to your son or daughter as they see fit?
The money wouldn’t belong to the disabled or vulnerable person, so it wouldn’t affect their means-tested benefits and reassuringly, their generous nature couldn’t be taken advantage of when you wouldn’t be there to protect them.
The money would be available to them for all sorts of things – all the things you would have wanted them to have and enjoy. The Trustees could agree to money being spent on lovely holidays, nice clothes or stylish/practical furniture etc and things that would never be afforded out of the benefits they receive; but that will make their lives easier and more enjoyable.
A Will Trust of this type is treated differently to most Trusts when it comes to tax etc. There are concessions which broadly mean that for tax purposes the assets are treated as belonging to the beneficiary/s of the Trust, so the tax treatment is much more favourable.
If you’d like more information about how you could use a Trust of this type to protect an inheritance for someone in your family (it will probably cost a lot less than you think), please do contact us on 01438 746977 or firstname.lastname@example.org