Discretionary Trust

Discretionary Trust
£395.00

A Discretionary Trust, also known as a Vulnerable Trust, is a legal arrangement designed to provide for the care and financial well-being of a vulnerable beneficiary. This could be someone who is disabled, has special needs, or is otherwise unable to manage their own affairs.

How it works:

  1. Assets: You transfer assets, such as money, investments, or property, into the trust.
  2. Trustees: You appoint trustees who have the discretion to decide how the trust's income and capital are used for the benefit of the beneficiaries.
  3. Beneficiaries: You name a class of potential beneficiaries, typically including the vulnerable person and potentially other family members.
  4. Flexible Distribution: The trustees have the flexibility to distribute funds as they see fit, taking into account the individual needs and circumstances of the vulnerable beneficiary.

Key benefits of a Discretionary Trust (Vulnerable Trust):

  • Protection: Protects the assets from being misused or lost due to the beneficiary's vulnerability.
  • Flexibility: Provides the trustees with the discretion to adapt to the changing needs of the beneficiary over time.
  • Tax Efficiency: Can potentially offer tax advantages, depending on the specific circumstances and the way the trust is structured.
  • State Benefits: May help preserve eligibility for means-tested benefits, as the assets are not considered to be owned by the beneficiary.
  • Peace of Mind: Provides reassurance that the vulnerable person will be financially supported and cared for.

Who should consider a Discretionary Trust (Vulnerable Trust):

  • Parents or guardians of a child with special needs or disabilities
  • Individuals who have received a personal injury settlement or compensation
  • Those with a family member who is unable to manage their own finances due to age, illness, or other circumstances

If you'd like to learn more about Discretionary Trusts (Vulnerable Trusts) and explore whether they are suitable for your situation, please don't hesitate to contact us for a consultation. We can provide you with expert guidance and support to help you make informed decisions about protecting your loved ones.