Making a Will when you have a disabled child
For anyone with children, it is important to make a Will that provides for them if their parents die before they reach adulthood. However, if one or more of your children is disabled, making the right arrangements becomes crucial to maintaining their quality of life and securing their future after you die.
There are several types of Will to choose from that will benefit your child and provide for their practical and financial needs. However, many parents with a disabled child opt for a Discretionary Trust Will. A Discretionary Trust Will puts some or all of the parent’s money, property and assets into a Trust that is managed by at least two Trustees. As well as the disabled child, the Trust will have other beneficiaries, such as other children or grandchildren, who are named in the Will and can also benefit from the Trust’s income and capital.
Because the beneficiaries do not own the Trust’s contents and cannot control them, a Discretionary Trust is ideal for disabled children that lack mental capacity and cannot make their own financial decisions when they reach the age of 18.
The Trustees of a Discretionary Trust have complete discretion to decide how to administer the Trust. Many of the Trustee’s powers and duties will be set out in the parent’s Will, other powers and duties will be laid down by law; Trustees are expected to act in the best interests of the beneficiaries at all times.
Parents should ensure their Will is accompanied by a Letter of Wishes, although this is not legally binding, it will guide the Trustees when they make decisions about using the Trust’s assets. For example, if you want your child to have a holiday each year or maybe want them to attend a specific school you can state this in the Letter of Wishes.
A key benefit of Discretionary Trusts is that they do not affect your child’s entitlement to means-tested state benefits, such as Income Support, which could be withdrawn if they directly inherit from your estate. Using a Discretionary Trust means that your child will not own the money or assets included in the Trust, therefore these cannot be taken into account if they are assessed by the Local Authority for their ability to pay for home-based or residential care. A Discretionary Trust is a good option if you own property, have savings and are looking for greater peace of mind that your child’s interests will be protected.
Discretionary Trusts from The Co-operative Legal Services
Our professional Will Writers offer expert advice to make sure you fully understand how a Discretionary Trust Will could help. We will write a Will tailored to your specific needs, whatever your circumstances are.