Disabled Discretionary Trust

From time to time advice will be sought where financial provision is needed for a beneficiary who is unable to lead an independent life because of mental or physical disability.

In all such cases special care must be taken because:


a) The beneficiary may be, or may become, dependant upon means-tested support and any provision made may reduce the sums available to the beneficiary.

b) The beneficiary may be incapable of handling substantial sums of money and so some form of trust provision will be essential if an application to the Court of Protection for the appointment of a receiver is to be avoided.

c) If a parent makes no provision for a disabled child the local authority may cause application to be made for an order under the Inheritance (Provision for Family and Dependants) Act 1975.

It is necessary from the outset that we establish your main concerns and objectives.

In many cases the testator (you) will wish to achieve two potentially conflicting objectives:

1) not to make any monies available to the beneficiary if this will merely result in the loss or substantial reduction of other funding.

2) to ensure a sufficient future standard of care provision and make arrangements to fill any gaps.

Advice to you in such a case will be on the basis that you rely upon your own knowledge of the benefits and funding systems, however advice will be given on the means of providing support by provisions made in your Will.