If you’re a parent or grandparent of a vulnerable child or grandchild, it’s natural you’ll worry about their welfare after you’re gone. There are a range of reasons why your loved one may require additional support.
It’s likely that you have questions how to best protect the vulnerable person. How to provide care and financial security whilst balancing the needs of your other beneficiaries?
By putting the right legal protections and financial plans in place, you can answer these queries in a positive manner and give yourself complete peace of mind.
Who is classed as a vulnerable person?
A vulnerable person is anyone who might be unable to sufficiently care for or protect themselves independently.
There may be a range of reasons for this, including:
● Being very young
● Neurodiverse conditions including autism, Aspergers or ADHD
● Being differently abled
● Having an addiction problem
● Mental health challenges including trauma or depression
● Low income or unstable financial circumstances
The protections you need to put in place will differ depending on your vulnerable person’s specific circumstances. A professional advisor will listen to your concerns and recommend the different solutions available.
Using Trusts to protect
Trusts can be used to protect your vulnerable person inheritance. Trusts can be established in your Will or during your lifetime, so your beneficiaries have managed fund and one that is protected.
You appoint Trustees who will be responsible for overseeing and making decisions about the individual’s access and use of their inheritance. Trustees would normally be your family members or close friends. Your Trustees would need to be aware of their responsibilities.
This will ensure the smooth transition and protection of your assets whilst limiting inheritance tax liabilities.
Putting a Trust in place enables you to safely leave assets to people who:
Cannot manage their own affairs due to age, neurodiversity or mental health capacity
Receive means-tested benefits and who would otherwise lose them should they inherit directly
May use their inheritance to fund an addiction and dangerous or illegal behaviours
Are in an abusive or coercive relationship with someone who may take advantage of their new financial situation
Are irresponsible with money or vulnerable to financial abuse
Choose the right Trust for your loved one
The two main trust options for protecting vulnerable people are general Discretionary Trust or Vulnerable Beneficiary Trust. Each has specific benefits which will be appropriate for different circumstances.
By listening to your concerns and question, I can recommend the best options for your current situation.
To take your first step towards peace of mind, call us on call us on 01926 897077, send us an email: anna@citywidewills.co.uk or visit our website: citywidewills.co.uk to book a FREE initial appointment.
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