Why set up a trust?
Unlike many other trusts, a discretionary trust fund allows you to make financial provision in a way that does not affect means tested benefits. It is a way of looking after a property or money so it can help a person who is not able to look after the assets for themselves. Therefore, your child, or their deputy, will not be responsible for the money you give. This can help protect your child from exploitative, so called, friends. We work with you and your loved ones on how best to use the trust.
Our youngest beneficiary is 2 years old, putting plans in place is especially helpful when grandparents and extended family want to make provision for children.
Lots of families make their plans as their child reaches adulthood. The decision could be triggered by families talking together about transition plans. Less fortunately it may be triggered by a family witnessing what happens when a person loses their entitlement to benefits because a loving grandparent has left a legacy directly to that vulnerable person. There are too many calls to the Trust Office asking what can be done to "undo" the direct gift.
A significant gift made to a grandchild with a learning disability or autism can mean that the person loses their benefits and access to a support package that has been carefully built up. Once the money is spent and the person qualifies again, the support package is renegotiated, often from scratch. When the gift is made through a discretionary trust entitlement to benefits is protected.
Mencap Trust Company works with beneficiaries for the whole of their life, we have beneficiaries all ages.
- 10% of trusts are for people under 18
- 30% of Mencap trusts are for people ages 18 to 30
- 55% of Mencap trusts are for people aged 30 to 65
- 5% of our beneficiaries are over 65, they all have active trusts
So when is the best time to set up a discretionary trust?
If your child is very young you will know you have the right structure in place. You will also give extended family and friends the opportunity to make a gift to your child without placing them at a disadvantage later in life.
If your child is an adult you will lessen your own worry by making plans. Setting up a trust means you have a good idea of what will happen when you are no longer around.
Mencap Trust Company Ltd has provided a specialist trust service for people with learning disability and autism for over 40 years. We may be the right choice for your family, we might not be. Please look at our web pages or call the Trust Office on 020 7696 6932 to find out more.
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It’s natural to worry what will happen to your loved ones when you are no longer around. Find out how Mencap Trust Company can help with your financial planning.Find out more