What is a Vulnerable Persons Will Trust?
What is a trust?
A trust is a way to set aside money or assets in your will to be looked after by a trustee – usually someone you trust – for the benefit of someone else. There are different types of trusts, but they’re often used to protect assets, support loved ones over time, or give you more control over how and when things are passed on.
What is a Vulnerable Persons Will Trust?
A Vulnerable Persons Will Trust is a way of continuing to support a disabled or vulnerable loved one after you die, without affecting their benefits or putting money directly in their hands.
Instead of giving them the inheritance outright, the trustees hold it for them. Your trustees decide how it’s used, such as for:
- Care or therapy
- Housing or everyday needs
The trust lasts for their lifetime. After they die, anything left can go to other people or causes you’ve named.
This type of trust only comes into effect after you’ve died.
HOW LONG DOES IT LAST?
A Vulnerable Persons Will Trust usually lasts for the lifetime of the person it’s set up to support, and comes to an end when they die.
What are the advantages of a Vulnerable Persons Will Trust?
- It protects your loved one’s inheritance from being misused, lost to divorce, debt, or bad
decisions. - It makes sure their money is managed by people you trust, in the beneficiary’s best
interests. - It helps protect their benefits, as the trust won’t usually affect means-tested support or
care funding. - It can hold all sorts of assets, including a home, giving them more stability.
- It may also offer tax benefits and may prevent double taxation, depending on your
circumstances.
What to do after setting up a Vulnerable Persons Will Trust?
- Write a Letter of Wishes:
To guide your trustees on how you’d like them to act. We can help you do this.
- Tell your trustees:
Make sure they understand their role and where to find the paperwork.
- Review the trust now and then:
Check the trust still reflects your wishes.
If you have any questions about a Vulnerable Persons Will Trust please contact our team on 020 4525 3605.
