Firstly, you need to put a Will in place so that you get to choose who benefits from your estate. If you don’t, this decision will be in the hands of the courts (Laws of intestacy), which I know I certainly wouldn’t want to happen. You also need to put named guardians in place, so that in the event of your untimely death, you have chosen who you want to look after your children rather than social services, again- who wants that to happen? Certainly not me!
Secondly, leaving your estate to a disabled child can have a few different consequences. One of the main consequences you will need to take into account is any state benefits that your child is receiving. If your child receives benefits, they may lose those benefits if they inherit your estate directly, you must set up a trust to protect their inheritance and benefits. Once you’ve lost your benefits, you (in this case your appointed guardian) would have to apply for them again, and nobody fights like a parent for their child’s benefits!
By setting up a Trust in your Will, you can protect their inheritance and any affected benefits. A Discretionary Trust can be an excellent way of providing for a disabled child, particularly if they are likely to need care and support in adulthood. One of the main advantages of a discretionary trust is that it can protect your child’s inheritance from being taken into account when means tested benefits are calculated. The last thing you would want is for your child to lose their benefits in the event of your passing when you have fought so hard to get them. However, there are some potential implications that you should be aware of before setting one up. The trustee has discretion over how the trust fund is used, so it is important to choose a trustee who is reliable to act in your child’s best interests.
Lastly, you should consider putting a Lasting Power of Attorney in place. If you were to lose capacity whilst alive, you would want somebody you trust to be making your decisions for you, rather than the courts. It doesn’t matter whether you’re married or unmarried, your partner cannot automatically assume the rights and so a Lasting Power of Attorney must be put in place. This makes things so much easier if you were to lose your capacity and also means your children would have somebody trusting to make decisions on their behalf too.
If you would like more information about how I might be able to help you, then don’t hesitate to contact me today.
