Disabled Discretionary Trusts

Looking after a disabled loved one can be a huge financial burden. Disabled Discretionary Trusts help elevate the burden and enable parents, or relatives to plan long term financial provision for their disabled family member.

Why Is It Necessary?

If someone who is in receipt of either a State or Local Authority benefit inherits an asset, they will often lose these benefits making the government the beneficiary not your relative. Assets held in a Trust do not 'belong' to a specific individual, which means that any thing held in the Trust is not taken into account when assessing entitlement to state benefits such as Income Support or Local Authority obligations to fund care. This is particularly important where a beneficiary has a condition that will prevent them from supporting themselves in the future.

Plan For The future

Trustees are set up through your Will to operate the Trust. These can be family members, friends or professionals and they will have complete discretion on how the assets are used.

The beneficiary must not have the right to the income and the intended beneficiary must not be the only named person on the trust, in our experience often a charity or siblings are also named.

We can offer advice and guidance on how to plan for the future for your disabled loved one to ensure the right financial provisions are made for their future.

To find out how Estate Legacy Service can help with Disabled Discretionary Trusts please contact us.