Mr. and Mrs. had three children, one of whom had special needs. This child lives in residential care, receives benefits, and will never be able to live independently or manage their finances. They wanted to make financial provisions without risking the benefits and additional support the child receives.
We divided their estate among the three children, with two receiving their shares outright. For the third child, we implemented a Disabled Person's Trust in the will (also known as a Vulnerable Person's Trust).
This trust is discretionary, meaning the trustees manage the funds on the beneficiary’s behalf. Because the beneficiary has no absolute entitlement, it protects their means-tested benefits. This approach also offers ongoing tax benefits compared to a standard discretionary trust.
This strategic planning ensures the financial security of their vulnerable child while maintaining essential support and benefits.
Have questions about this success story or need advice tailored to your situation? Contact our team at Soteria Planning. Call us at 01344 531521 or request a meeting with one of our Advisors.
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