Disabled/Vulnerable Person’s Discretionary Trusts

By | Guardianship, Inheritance, Legal, Trustees, Trusts, Wills | 2 Comments

The Disabled/Vulnerable Person’s Discretionary Trusts These are useful trusts to use when your client has a child or another relative with a disability and who needs constant support. If this person inherits from a Will directly, this may affect what disability benefits they may receive. We can put the assets into a Discretionary Trust with the disabled beneficiary as the Principal Beneficiary. As with any other Discretionary Trust, there must be more than 1 appointed beneficiary. The main reason for this is because whenever a person in receipt of disability benefits receives an inheritance, the Local Authority will want to assess them. This means if they hold over a certain threshold (this can vary) the Local Authority can cut the benefits that person receives. If the estate of the testator is due to pay any IHT. This will need paying before the assets are passed into the Trust, at 40%…

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Commercial LPAs. What they are and what they do!

By | Commercial, Legal, LPA, Uncategorized | No Comments

Commercial LPA Many business owners, partners and directors may not consider what would happen to their business should they be unable to make decisions for their business in the case of their mental incapacity, or if they plan on leaving the country for a long period of time. The answer could be an LPA. For many Partnerships, LLPs and companies, under the Mental Health Discrimination Act 2013, in the case of a Director/Partner losing their mental capacity they cannot be removed as a Director for that company. This will leave the company in a difficult position, where the best way around this, is to apply for a Deputyship, which as we all know is a timely and costly procedure. For a Sole Trader, if they lose their mental capacity, in most cases this would result in losing the business as there is no one able to take it on and…

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