Special interest trusts
A trust is a tool that can be used in many circumstances to protect assets or minimise tax. Their terms and flexibility can vary significantly, and a trust can be specifically tailored to meet the needs of vulnerable beneficiaries.
For example, you might use a trust to:
- hold an inheritance for a person with a learning or other disability to provide additional support beyond the basic care provided by the State to enhance life
- protect a personal injury award from care costs, or to avoid the loss of means-tested benefits
- avoid assets being used to provide care, or to fund enhanced levels of care from third-party providers
- avoid the need for a Court of Protection Deputy or Lasting Power of Attorney to manage an individual’s assets
Whilst HMRC recognises a vulnerable person’s trust status, the choice of trust, its tax treatment and the technical jargon make this area a minefield to negotiate without proper guidance. We regularly advise on the alternatives available and can help to prepare a trust that accurately reflects your wishes.
For more information on special interest trusts and to start a conversation on how we can help please contact Glen Miles, Head of Vulnerable People (Partner, Private Client).