How can you leave money to someone vulnerable or disabled?

• Benefits. Money they inherit can count against means-tested benefits.
• Capacity. If they cannot manage money themselves, someone may need to apply to the Court of Protection to act for them.
• Risk. A large sum can make a vulnerable person a target for pressure or exploitation.
• Young beneficiaries. A child usually receives their inheritance outright at 18, which may be too young.

Trustees hold the money and manage it for the beneficiary. A discretionary trust lets the trustees decide when and how to pay, for example for care, equipment, holidays or a home. Because the beneficiary does not own the money, it is less likely to affect their benefits. Most of these trusts are written into the will and only start on death. The wording matters, so it needs to be done properly.

Some trusts qualify for special income tax and Capital Gains Tax treatment where the beneficiary is a disabled person or a child who has lost a parent. Whether yours qualifies depends on the beneficiary and the trust terms.

Choose people who are reliable and understand the person. Two trustees is usually sensible, with a replacement named in case one cannot act. A letter of wishes can explain how you would like the money used.

We are will writers, not benefits advisers. For benefit questions, we recommend taking specialist advice alongside your will.