A Must-Read Guide for Parents of Vulnerable Children or Family Members

As a parent, you spend every day making sure your child feels safe, supported, and loved. But if your child has an additional need, like autism or a physical or mental health condition, there’s an extra layer of worry about what their life will look like when you’re no longer around to protect and guide them. That’s why it’s so important to have the right legal and financial plans in place now.

A properly drafted Will that includes a Vulnerable Person’s Trust (also known as a Disabled Person’s Trust) can provide essential protection, security, and peace of mind. You can also set up a Vulnerable Person’s Trust during your lifetime (rather than waiting until your death).

What Is a Vulnerable Person’s Trust?

A Vulnerable Person’s Trust is a legal arrangement designed to hold and manage assets on behalf of a person with a disability. Rather than leaving money or property directly to your child, the assets are placed into a trust managed by trustees you appoint. These trustees are legally obligated to use the funds for your child’s benefit, ensuring their needs are met without compromising their eligibility for means‑tested benefits like Universal Credit or Personal Independence Payment (PIP).

Who Qualifies as a “Disabled” or “Vulnerable” Person?

There are two main categories:

Bereaved Minors: Individuals under 18 who have lost a parent.

Disabled Persons: Those who meet specific disability criteria, including:

Individuals in receipt of certain disability-related benefits such as Personal Independence Payment, Disability Living Allowance, or Attendance Allowance.
Those with a mental incapacity that makes them unable to administer their property or affairs. This can include:-

Autism spectrum disorders
Learning disabilities
Mental health conditions such as depression and Bi-Polar Disorder
Neurological disorders such as cerebral palsy
Physical impairments such as blindness

Why a Standard Will Isn’t Enough

Simply naming your child as a beneficiary in your Will can unintentionally create problems. As highlighted in a recent Guardian article, one mother discovered that leaving her autistic son an inheritance directly would have jeopardised his access to essential support services. Without a trust:

The inheritance could disqualify your child from means‑tested benefits.
They could become vulnerable to financial exploitation.
They may lack the capacity to manage the funds appropriately.

A Vulnerable Person’s Trust mitigates these risks by ensuring that assets are managed responsibly and used solely for your child’s benefit.

Key Benefits of a Vulnerable Person’s Trust

Preservation of Benefits: Assets held in the trust are not counted when assessing eligibility for means‑tested benefits, ensuring continued access to vital support.
Protection from Financial Abuse: Trustees oversee the funds, reducing the risk of exploitation.
Tax Advantages: These trusts qualify for special tax treatments, potentially reducing inheritance tax liabilities.
Customised Support: Trustees can use the funds to cater to your child’s specific needs, such as specialised care, equipment, or therapies.

The Importance of a Letter of Wishes

While not legally binding, a Letter of Wishes can accompany your Will and trust, providing guidance to your trustees on how you’d like the funds to be used. This can include preferences for living arrangements, types of care, or recreational activities, offering a personal touch to your planning.

How we can help

We understand how overwhelming it can feel to make long-term plans for a child with additional needs. That’s why our team of trust specialists is here to guide you every step of the way. We have years of experience in setting up Wills and Vulnerable Person’s Trusts tailored specifically to families like yours.

We offer a free consultation to talk through your circumstances, answer your questions and help you understand your options. Our goal is to make sure your child’s future is secure, no matter what life brings.

For more insights, read the recent Guardian article: Special needs planning: making a will and trust for vulnerable dependents.