What is a special needs trust?
A special needs trust (sometimes also called a ‘personal injury trust’ or a ‘trust for disabled people’) is a legally binding arrangement that can help you to provide for a friend or family member with a disability, learning difficulty or other special needs. It can be used to protect your own legacy to your loved one as well as any funds of their own including those arising from litigation, insurance or compensation claims.
The benefits of a special needs trust
One major advantage of a special needs trust is that the beneficiary can usually continue their entitlement to local authority support and means-tested state benefits. This type of trust will usually attract Income Tax benefits for its vulnerable beneficiary and in some circumstances there are Inheritance Tax advantages too.
Establishing and managing your trust
With many years of experience in understanding the subtleties of individual needs and circumstances, and the legal and financial tools that can be designed to meet them, we can give you the tailored advice, services and support you need to create and manage your special needs trust. Family members often choose to act as trustees and oversee the running of the trust. However our specialist Trust Administration Department can help with this or indeed manage the trust for you.
In practice, a special needs trust can mean, for example, that your disabled child will be able to continue living in the family home (with support if necessary) even after you are gone.
Call us on 0114 267 5588 to talk about special needs trusts or email us: we’re here to help.