Leaving an Inheritance, concerned how it will be used? Any help, please?

Dude321

Hi, I wonder if anyone else has had this problem or knows how to best deal with it.

My sister suffers from a long term illness. My mum is getting on in years and is thinking of how to update her will.

The issue is that she wants to leave what she wants for my sis. However, because of my sisters illness, my mum is concerned about how the money will be used.

It's quite a difficult one. She wants to leave her an inheritance but not so that it gets badly used (which is a real possibily at the extremes of her illness - and has actually happened before so is a real fear).

The problem is how to leave an inheritance which will help my sis which also let my mum rest easy that it won'tvbe "wasted".

A trust fund with conditions? Hard to draw the lines
A trust managed by me? I will do it if I have to but I don't really want to be in the awful position of gatekeeper when things get hard.
A trust which releases money every month? The problem here is she is clever enough to get a loan against it or some thing.

Any other ideas?

Thanks, this is very hard and have no idea what is the best course of action.

Many many thanks

SeniorSam

A Discretionary Trust leaves the decissions to the Trustees, so they can vary what they do. Best to have a professional person as one of the Trustees in this parrticular case, so you can get additional advice from as solicitor.

Do check on the solicitors charges when managing the Trust with the other Trustees, as they may be high.

getmore4less

I would check if they can be classed as vunerable.

G6JNS

Dude321 wrote: »

Hi, I wonder if anyone else has had this problem or knows how to best deal with it.

My sister suffers from a long term illness. My mum is getting on in years and is thinking of how to update her will.

The issue is that she wants to leave what she wants for my sis. However, because of my sisters illness, my mum is concerned about how the money will be used.

It's quite a difficult one. She wants to leave her an inheritance but not so that it gets badly used (which is a real possibily at the extremes of her illness - and has actually happened before so is a real fear).

The problem is how to leave an inheritance which will help my sis which also let my mum rest easy that it won'tvbe "wasted".

A trust fund with conditions? Hard to draw the lines
A trust managed by me? I will do it if I have to but I don't really want to be in the awful position of gatekeeper when things get hard.
A trust which releases money every month? The problem here is she is clever enough to get a loan against it or some thing.

Any other ideas?

Thanks, this is very hard and have no idea what is the best course of action.

Many many thanks

Once the person has the money they are free to spend it as they wish. I don't understand you comment about her getting a loan against a trust. It is just not going to happen. Many of the support organizations for illnesses have websites. Try looking on the one that is applicable. They may be able to point you in the right direction.

theoretica

Dude321 wrote: »

A trust managed by me? I will do it if I have to but I don't really want to be in the awful position of gatekeeper when things get hard.

I have the impression that discretionary trusts need to have at least two trustees so you wouldn't be alone as gatekeeper.

Practically speaking, this is not something which is suitable for a DIY will and your mother should speak to a competent family lawyer.

G6JNS

theoretica wrote: »

I have the impression that discretionary trusts need to have at least two trustees so you wouldn't be alone as gatekeeper.

Practically speaking, this is not something which is suitable for a DIY will and your mother should speak to a competent family lawyer.

Sound advice. The solicitor will be able to advise her about how to address the concerns she has.

Fen1

Firstly, I apologise if I have got this wrong or seem insensitive. From what you have written can I assume that your sister has mental health issues, perhaps bipolar? Bipolar patients can spend ridiculous amounts of money during an up-swing.

Contacting Mind Legal Advice might help
http://www.mind.org.uk/information-support/legal-rights/legal-advice-service-faqs/

Also, contact the charity that works with your sister's problem. It is a situation they may have come across before.