Case Study: Vulnerable Persons Trusts
- Case Studies
- 4th Mar 2024
Following an initial meeting with new clients to discuss their Will instructions, we highlighted that the client’s child has autism and learning difficulties. We discussed the needs of the child and the parents advised that they wanted to make sure that the finances are looked after when they are gone to ensure that their child […]
By Samantha Kennedy
MLP Law
Following an initial meeting with new clients to discuss their Will instructions, we highlighted that the client’s child has autism and learning difficulties.
We discussed the needs of the child and the parents advised that they wanted to make sure that the finances are looked after when they are gone to ensure that their child is provided for. Discussing the individual details, whilst their child is still a minor, the clients believe that it is likely that they will benefit from supported living and means tested benefits in the future. They wanted to ensure that anything they do in accordance with their Wills does not have a detrimental impact on their benefits or care which they are likely to receive in the future.
We reviewed their current Wills and discussed their finances, to enable us to fully advise on providing for their beneficiaries in the future.
We advised that they should include a Disabled Persons Interest trust in their Will for the benefit of their child. Due to the disabilities the money in the trust can receive special inheritance tax treatment and also be treated for other taxes as if owned by the beneficiary. Establishing a Disabled Persons Interest trust will ensure that the proceeds in the trust do not count for any means tested benefits or care. This means that the child can continue receiving funds and care that they should be entitled to. The trustees have flexibility in deciding how to use income and capital, for the benefit of the child during their lifetime.
During the meeting we also discussed protecting funds from anyone who might take advantage of the beneficiary in the future. As the funds are held for the benefit of the child, it means that third parties cannot take advantage and manipulate them to access the funds.
About the expert
Samantha Kennedy
Associate Solicitor - Wills, Trusts and Probate
Samantha is a n Associate Solicitor in MLP Law’s Wills, Trust and Probate team. Samantha has extensive experience in Private Client Law, providing clients with advice on Wills, Lasting Power of Attorney, Probate and future planning. Having practiced in Private Client since 2013, Samantha has provided advice on a broad spectrum of matters including care home fee planning, asset protection, compensation protections trusts and trusts for parents of children with disabilities. Samantha regularly acts for business owners and high net worth individuals in relation to their Wills and Estate planning to provide innovative and tailored solutions for their individual needs. Experienced in presentations and public speaking, Samantha enjoys making presentations about planning for the future and protecting assets. In her spare time, Samantha loves spending time with family and friends, particularly going for walks with her partner and their dog. Samantha is a keen traveller and likes to visit new places and has previously travelled to Australia, Thailand, Vietnam, Cambodia, Fiji and various countries in Europe.
Arrange an appointment
Let’s start by getting to know you and your business - either on the phone or in person. Complete the form below and we’ll be in touch shortly.