We set the scene for UK families aiming to keep their loved one’s future secure while avoiding harm to benefits or care. A will names who gets your money, property and belongings when you die. It also needs mental capacity and chosen executors to work correctly.
In plain terms, estate planning means your will, how assets pass on and simple steps you can take now to reduce stress later. Many parents want a stable, comfortable life for their child and fair outcomes for the rest of the family.
In many cases, a properly drafted trust gives trustees control over a fund and prevents an outright gift from affecting means-tested support. We explain which type of trust may fit, who to appoint as trustees and how to fund and run the arrangement.
This is specialist territory. We outline when to seek solicitor or STEP advice, and where trust companies add value. See more on inheritance tax planning in Reading.
Key Takeaways
- Make a will that states who receives your money and who acts as executor.
- Outright gifts can reduce means-tested support; trusts can avoid that risk.
- A correctly set up trust can offer long-term stability and oversight.
- Decide who will act as trustees and how the trust will be funded.
- Get professional advice from solicitors, STEP members or trust firms.
Who this guide is for and what you’re trying to protect
If you look after a person who may always need support, this guide explains practical planning that protects living standards and future care. We write for parents, grandparents and carers who want clear, sensible steps.
What you truly protect is more than money. It is continuity of care, stable housing and day-to-day quality of life. That means thinking about savings, property and other assets alongside the practical duties that come with them.
Real life changes matter. Local authority support can shift. Needs may rise or fall. Family roles can evolve. We walk through typical circumstances so you can build plans that bend, not break, when things change.
- Who this helps: families and carers planning ahead for a vulnerable child or adult child.
- What to guard: money, ongoing care, housing and everyday routine.
- How we help: clear steps to match the right legal structure to your family goals.
For practical guidance, see Mencap’s guide to wills and trusts and our overview of estate planning to secure your family’s future at Mencap’s guide and our estate planning overview.
Why leaving money outright can backfire in the UK
A lump sum passed directly to a vulnerable family member can trigger benefit checks and unintended cuts. We explain why an outright gift may harm practical support and long-term security.
Means-tested benefits may treat a large cash award as capital or income. That can change eligibility and reduce or stop support from the local authority.
The result may be distressing. Funds can be used to pay for care or assessed as available cash, leaving the person worse off once the sum is spent.
Financial abuse and vulnerability after bereavement
Receiving money during grief can make a person a target. Friends, distant relatives or opportunists may pressure someone who struggles with numbers or decisions.
Capacity and Court of Protection involvement
If a person cannot manage money, the Court of Protection may need to step in. This adds delay, cost and formal oversight that family members often find stressful.
| Risk | What can happen | Practical effect |
|---|---|---|
| Means-tested benefits | Inheritance treated as capital or income | Loss or reduction of benefits and local authority support |
| Financial abuse | Pressure from others after bereavement | Money spent on non-essential people or scams |
| Capacity issues | Court of Protection appointed to manage affairs | Delay, legal costs and loss of informal family control |
| Long-term value | One-off gift with no oversight | Funds can be exhausted without lasting benefit |
Next steps: Later we discuss how a properly drafted trust can keep trustees in control while allowing the person to benefit. That approach often avoids the sudden loss of benefits and reduces the risk of abuse.
What happens if you don’t make a Will
Without a valid will, the law follows a set path that may not match your family’s needs. The rules of intestacy decide who gets what. Your personal wishes can be ignored.
How intestacy rules can override your wishes
Intestacy means fixed legal rules apply. The state uses a formula to divide assets. This can exclude people you meant to help.
“If you die without a will, government rules determine distribution and your wishes may not be met.”
Why informal family arrangements may not be reliable long-term
Leaving money to relatives on trust they will care for a vulnerable member is risky. Legally, the gift becomes their asset.
- Risks: divorce, bankruptcy, death or changing relationships.
- Practical effect: funds can be lost or unavailable when needed.
- Disputes: relatives or others may challenge arrangements.
| Approach | Main risk | Practical result |
|---|---|---|
| Intestacy rules | Estate split by law | Your wishes ignored |
| Informal arrangements | Beneficiary control | Money at legal risk (divorce, bankruptcy) |
| Will plus trust | Legal structure | Clear duties and lasting support |
| Delay/No plan | Court involvement | Time, cost and uncertainty |
Our advice: a clear will with the right trust wording is the best way to make sure your part of planning works as you intend. Seek professional advice early.
protecting inheritance for children with learning disabilities uk with the right trust
A trust lets appointed people manage funds so the vulnerable person keeps benefit entitlements and practical support. We explain the basics in plain terms so you can see what matters when you choose a route.
How a trust works: trustees, trust fund and beneficiaries
Think of a trust as a legal wrapper. You put assets or money into it. The trustees then hold and manage the trust fund on behalf of beneficiaries.
Trustees follow instructions in the trust. They decide when and how to use funds. Beneficiaries get the benefit, not outright ownership.
Why assets in a properly drafted trust may not count as the beneficiary’s capital
Key point: in the right discretionary‑style trust, the disabled person does not own the funds outright.
This can mean the trust assets are not treated as the beneficiary’s income or capital for means‑tested benefits and local authority assessments. Trustees can pay for care, equipment or activities that improve life without handing over cash that triggers reductions.
When a trust starts: set up in your lifetime vs in your Will
A lifetime trust starts immediately. That gives control now. A trust in your will starts on death and can be easier to change while you live.
Practical note: you can combine approaches. Many families create a trust now and add more via will planning later, keeping options open over time.
Choosing the best type of trust for your family
A well-chosen trust mixes flexibility and protection so needs can be met over many years.
Discretionary trust: flexibility and benefit protection
A discretionary trust lets trustees decide if, when and how much to pay out. Trustees can act as needs change.
This type of trust helps keep the named person from being treated as owning the fund. That often preserves means‑tested support.
Disabled person’s trust: who it suits and how it differs
A disabled person’s trust is written mainly to benefit the disabled person. It often receives favourable treatment when correctly drafted.
It can still include others, but the main priority stays the named beneficiary.
Payments to other beneficiaries and annual limits
Rules say no more than £3,000 or 3% of the fund may go to someone other than the disabled person each year.
That limit keeps the focus on the vulnerable person while allowing modest gifts elsewhere.
Using a “pool” of beneficiaries
Including siblings and grandchildren in a beneficiary pool keeps options open. Trustees can help wider family in exceptional cases.
Think about goals, control and flexibility when choosing between a discretionary trust and a disabled person’s trust.
Picking trustees who will act in your child’s best interests
The people you appoint to run a trust shape day‑to‑day life for your loved one. We say the choice of trustees matters as much as the trust type.
Why you usually need at least two trustees
Mencap advises a minimum of two trustees. Two or more trustees give checks, cover absences and help with continuity when decisions arise.
Trustee responsibilities: decisions, unanimity and accountability
Trustees must read the trust deed and act personally. They keep records and manage investments responsibly.
Decisions are often expected to be unanimous, and trustees remain accountable to beneficiaries and any supervising body.
Family trustees vs independent/professional trustees
Family members can bring care and commitment. But an independent trustee adds technical skill and reduces family strain.
We often suggest a mixed team: trusted family plus a professional member such as a solicitor or the Mencap Trust Company. That not‑for‑profit option offers experience and lower fees.
Managing conflicts where a trustee is also a beneficiary
“If a trustee stands to benefit personally, they must declare the conflict and step back where fairness requires it.”
Clear rules, regular advice and an independent trustee help avoid disputes and protect the beneficiary’s interest.
How to fund and run the trust in practice
Deciding what to put into a trust shapes how well it meets day‑to‑day needs and long‑term plans.
What can go into a trust
Any asset can be included, but in practice families commonly place money, investments and property. Cash gives trustees flexibility. Investments can grow value but need oversight. Property offers security but adds management duties.
Leaving a home and planning for change
Placing a property in a trust is often advised. Trustees then handle upkeep, bills and repairs. That prevents the home being sold or misused.
Plan for future needs: include a letter of wishes telling trustees what to do if the property becomes unsuitable. That keeps options open when care needs change.
Distributions that keep benefits intact
Trustees usually avoid large cash payments to the beneficiary. Instead, they pay for care, holidays, equipment or a laptop to improve life without cutting means‑tested benefits.
Banking and practical administration
Trust accounts need clear records and simple systems. Mencap notes fewer banking options; Metro Bank, Skipton Building Society and Carter Allen Private Bank are known providers, and Mencap Trust Company can arrange an investment partner.
| Asset type | Pros | Cons |
|---|---|---|
| Cash | Easy to use, flexible | Spending must be tracked |
| Investments | Potential growth, income | Needs regular review |
| Property | Stable value, housing option | Upkeep, possible sale or adaptation |
Example: trustees fund a holiday, buy a computer and pay for extra support hours. These improve daily life and avoid reducing benefit entitlements.
Tax and value considerations to discuss before you commit
A small drafting detail can change how the tax system treats a trust, and that can be costly.
We explain the key points you should check before you proceed. Tax implications affect the overall value of any plan.
Inheritance tax: drafting and when favourable treatment may apply
Certain trusts set up to benefit a disabled person can qualify for favourable inheritance tax treatment when the wording and structure meet the legal tests.
That favourable treatment depends on precise drafting. Specialist legal advice reduces the risk of losing tax benefits.
Lifetime planning, will planning and timing
Choosing a lifetime route gives control now. It lets trustees act straight away and can reduce later referrals to the Court of Protection.
A trust created in a will starts at death. That may suit people who want flexibility while they live and the option to add funds later.
Practical checklist and timing
- Think about tax as part of the decision, not an afterthought.
- Ask whether the chosen trust type secures tax reliefs relevant to your circumstances.
- Decide when to fund the trust and how often to review its value.
“Seek specialist advice early. Good drafting preserves value and avoids costly surprises.”
| Issue | What to check | Practical outcome |
|---|---|---|
| Drafting quality | Trust wording, beneficiary definitions | Possible favourable inheritance tax treatment |
| When to act | Set up now or via a will later | Control now vs later flexibility |
| Value and review | Asset changes and family circumstances | Periodic review keeps plan fit for purpose |
Our advice: get specialist legal and financial advice early. That helps you keep value, meets tax tests and secures the outcomes that matter.
Conclusion
Putting intentions into writing helps trustees make confident decisions when you are not there.
Good planning secures ongoing care and steady support for your loved one. A well‑drafted trust and a clear letter of wishes give trustees practical guidance.
Review your will. Choose which trust type fits your family. Shortlist trustees who will act in the person’s best interest and reflect family values.
Leave a short letter of wishes describing routines, priorities and how you want decisions handled. This note guides trustees but does not override the legal document.
Seek specialist advice from charities, STEP‑qualified solicitors and trusted services via their website. This work is one vital part of planning and worth revisiting over time.