When it comes to writing a will, there a number of issues to consider you if you have beneficiaries who are disabled or vulnerable.
It is important that specialist advice is obtained.
Risks of Wills for Disabled Beneficiaries:
Third Parties Taking Advantage
For many people who have disabled or vulnerable beneficiaries, a concern may be that their loved could be influenced by unscrupulous third parties.
Means Tested Benefits
Many people want their estate to pass to their beneficiaries so as to make their financial situation easier.
Putting a large sum of money into a disabled beneficiary’s account can potentially mean that their benefits are reduced or stopped completely.
Gaining a Legal Receipt
When you are writing your will, it is important to consider whether your beneficiary is able to manage their own finances. If they are not, it may mean that someone may need to make an application to the Court of Protection. This process can be very time consuming and expensive.
The Solution – a Trust
It is often a worthwhile option to have a Will which pays the estate into a trust
The Will would appoint the people who would manage the estate on behalf of the beneficiaries.
As the assets and cash held in the trust would be “one step” removed from the personal ownership of the beneficiaries, the beneficiaries’ entitlement to the trust should not affect their entitlement to means tested benefits.
With a trust, it is common for people to write a ‘letter of wishes’ giving the chosen trustees guidance as to how they should hold, manage and distribute the estate for the benefit of the beneficiaries.
A trust can be a way to ensure that your beneficiaries are taken care of following your death.
If you want to find out more about writing a will with a disabled dependent in mind, our Wills & Probate experts are here to help you find the right option for you and your dependent. If you need to write a will, or if you just want some friendly, reliable guidance, speak to wills experts now on 0161 969 3131 or send them a message.