A disabled person’s trust is a powerful way to safeguard the long-term financial well-being of a loved one with a disability.
Whether you’re planning for a family member with a disability or looking to include both disabled and non-disabled beneficiaries, our experienced solicitors are here to guide you through every step.
Complete the contact form, and a member of our team will be in touch to discuss how we can help tailor a trust to meet your unique needs and goals.
Want to speak to us now? Call us on 01332 226 162.
DISABLED PERSON'S TRUST
Designed to offer flexibility and peace of mind, a disabled person’s trust ensures that vulnerable individuals are supported—both now and in the future—while providing tax benefits and preserving eligibility for means-tested benefits.
This specialist trust enables families to plan effectively for the needs of disabled beneficiaries, ensuring not only financial stability but also continued eligibility for state benefits.
To qualify, at least one beneficiary must be registered as disabled before assets are transferred into the trust.
Our specialist solicitors handle every case with care and sensitivity. Get in touch to discuss your requirements and how we can support you.
DISABLE PERSON'S TRUST
Not all trusts are created equal—each type is designed with a specific purpose in mind and offers unique advantages and limitations. Understanding these distinctions is crucial to selecting the right trust structure that aligns with your personal goals and circumstances.
Some trusts may provide enhanced control over assets, while others focus on tax efficiency or protecting the interests of beneficiaries.
The table below summarises the key benefits and limitations of disabled person’s trusts compared to other common trusts, helping you make an informed decision about which option best meets your needs.
| Benefits | Limitations |
|---|---|
| Financial security: A disabled person’s trust protects and distributes funds to meet the needs of disabled beneficiaries. | Specific criteria: Not everyone qualifies. Therefore, eligibility must be confirmed before establishing the trust. Our team will assist you in determining whether your loved one meets the criteria. |
| Tax efficiency: Compared to other trusts, a disabled person’s trust offers significant tax advantages, preserving more assets for beneficiaries. | Ongoing management: Disabled person’s trusts require legal oversight and administration, which can be complex. Our team can act as a professional trustee, completing all legal documents for other trustees. |
| Flexibility: Disabled person’s trusts allow for both disabled and non-disabled beneficiaries, making them a versatile estate planning option. | Limited asset distribution: Does not provide flexibility for asset distribution; if greater flexibility is needed, a discretionary trust or charitable trust may be more suitable. |
| Asset protection: A disabled person’s trust prevents misuse of funds by ensuring responsible management and controlled distribution. | Property transfers: A disabled person’s trust limits the transfer of significant property assets. A property trust may better suit the transfer of family homes or investment properties. |
Frequently Asked Questions
Anyone with a disabled beneficiary can establish a Disabled Person’s Trust. Our solicitors will guide you through the process to ensure it meets your family’s specific needs.
A person qualifies as disabled if they are unable to manage their property due to a mental disorder, as defined by the Mental Health Act 1983, or if they receive one of the following benefits:
Additionally, individuals may qualify under specific circumstances, such as:
You can place a range of assets into a disabled person’s trust, including property, cash, investments, and other valuables. Our team will help you determine which assets are best suited for transfer.
A disabled person’s trust offers tax advantages, including potential inheritance tax exemptions. It can help reduce the overall tax burden on assets transferred to disabled beneficiaries. Our experts provide tailored advice on the tax implications to help you plan effectively.
The trust must be used to support the beneficiary’s needs. While the trustee has discretion over managing and distributing the assets, they are responsible for ensuring the funds are used appropriately and in the beneficiary’s best interests.
A disabled person’s trust helps ensure the beneficiary remains eligible for state benefits. Its structure is designed to prevent disqualification from essential government support.
If the disabled beneficiary passes away, the remaining assets are distributed according to the terms of the trust deed. The trust may direct these assets to other specified beneficiaries.
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