Discretionary trust for mentally ill brother in mothers will

Mojisola

Steves wrote: »

Actually I wonder why a trust is needed? Could me and my brother set up a joint account and simply set up a standing order to my ill brother?

If your brother's share was given to the two of you, you could give him money for specific spends, like holidays or new furniture. I think if you made it a regular SO, that would affect benefits.

The main worry would be that the money would be yours. You would have to make some sort of provision in case either of you died before your brother or went through a divorce. What would happen to "his" money then?

If either of you had to claim benefits, "his" capital might affect what you can get.

Steves_2

Mojisola wrote: »

If your brother's share was given to the two of you, you could give him money for specific spends, like holidays or new furniture. I think if you made it a regular SO, that would affect benefits.

The main worry would be that the money would be yours. You would have to make some sort of provision in case either of you died before your brother or went through a divorce. What would happen to "his" money then?

If either of you had to claim benefits, "his" capital might affect what you can get.

Ahh - good points - cheers.

Savvy_Sue

Well, the important thing is that as executors you have to do what your mother's will stipulates. If she says 1/3 goes into a trust, that's what you have to do. After she is dead you CAN organise a Deed of Variation, but you need all beneficiaries to agree to that and it's not something to do lightly, especially where trusts are involved.

If it's possible to discuss this with your mother and make sure that she has taken appropriate advice (as I suggested earlier) then I really would recommend that. It is a good idea for you to be sure that she's taken advice, and for you to understand what advice was given, and why: it makes executing the will so much easier!

alm721

Argh right, hadn't thought about it from the benefits point of view. Seems like a trust is the best way forward. We're in a similar position with my younger brother. I think that if you and your other brother were to just 'look after' your other brothers share it would have tax implications for all of you.