discretionary trusts

Keep_pedalling

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Savings accounts are not the only way to receive income from savings. The are plenty of funds out there that could give significantly higher returns, there is also P2P, you and your brother could even keep the house and rent it out, although you seem to be renting, So I think buying your own home is probably the way to go.

Britannia12345

Why are trusts murky?

Yorkshireman99

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Essentially because trust law is one of, if not the most, complex areas of law. Few solicitors who are not STEP qualified members really understand it well. It really is a nightmare hence the reason DIYing trusts is fraught with pitfalls for the unwary.also remember that the more complex the trust the bigger chance of unforeseen problems.

SevenOfNine

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Yorkshireman99 wrote: »

Essentially because trust law is one, if not the most, complex areas of law. Few solicitors who are not STEP qualified members really understand it well. It really is a nightmare hence the reason DIYing trusts is fraught with pitfalls for the unwary.also remember that the more complex the trust the bigger chance of unforeseen problems.

'Murky' because too many laymen comment on trusts with only a layman's knowledge, YM99' use of the word 'complex' is more accurate. Even a qualified solicitor can fail to understand exactly what they are doing whilst happily setting one up for clients. A will writer would be an even worse choice followed closely by DiY.

Hence repeated advice to consult a STEP registered solicitor for advice, they will provide the expertise required, not cheap (even for providing advice, let alone setting everything up accordingly) but better safe than eventually sorry.

Edit: We had a NRB discretionary trust written into our wills for many years & were perfectly happy it would do exactly what was required. Ditched it when the Main Residence NRB came into effect because our trust put the property into the trust.

Britannia12345

I'll tell my parents what's been advised here and help them look for a STEP lawyer if that's they way they want to proceed.
Thankyou everyone for your help and advice.

Yorkshireman99

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Using trusts to avoid future effects on benefits is not nearly as easy as some unscrupulous companies would have you believe. The DWP are well aware of the various scams that are tried. Income from trusts often gets counted as income for calculating benefits.

Britannia12345

Really? This is worrying if disability charities like Scope are advocating them then.

Keep_pedalling

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Scope are not advocating them to protect your benefits, they are suggesting then as a useful method to provide long term security for a disabled person. So a DT may very well be appropriate for your disabled child or your husband, but not nessasarily for you.

Britannia12345

That's the problem though - I will probably never be able to go out to work again because I have to care for my husband so I don't have an option but to claim means tested benefits. My parents are concerned that I will have to use my inheritance to live on through no fault of my own or my husband's.

Yorkshireman99

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This isllustrates part of the problem.There is no simple one solution that fits all circumstances. Likewise circumstanes and legislation can, and does, change so designing a trust can b incredibly difficult. With my pedants hat on that is why you need proffessional help. Even then it may be very difficult to cater for all possibilities.