In this case our client was planning on leaving their Estate to an adult child with special requirements. Their beneficiary has mobility issues and is in receipt of certain benefits. These benefits would have been withdrawn with the sudden inheritance of a large lump sum.
After discussing the situation with our client our advice was to make use of a Discretionary Trust. The client agreed and we were engaged, not only to get everything set up, but also as professional Trustees to manage the Trust as well. When our client passed away, they left £30,000 which, had their child received it all in one, would have cut them off from much needed support and benefits.
Subsequently, in accordance with the wishes of our client, and in agreement with their child, we have managed the Trust making appropriate payments as required. This has included the purchase of a suitable car along with ongoing car insurance, ensuring that the beneficiary can remain mobile. We have also arranged for a sewing machine to allow the beneficiary to adjust their own clothes. With their mobility issue this is vital. During lockdown our client’s child took up wood carving as a hobby and we were able to facilitate numerous woodworking items to allow them to continue with this. Something for which they were very grateful.
After six years of managing the Trust for the benefit of our late client’s child, we have been able to maintain the beneficiary’s lifestyle and maximise the use of the funds. At the time of writing there is still around 20% of the inheritance remaining in the Trust for future use.
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