Discretionary Trusts / MENCAP

antilles

Hi, we are just doing some inheritance planning... my daughter is mentally disabled and receives higher rate disability benefit - it's likely she will be on this for life.

Through a support group we attend we came across a seminar on discretionary trusts run by Mencap which we attended. Basically the idea is that you pay money/assets into the trust as the disabled person would be unable to manage money themselves; this would eliminate or greatly lessen the possibility of financial abuse when we pass away.

I wondered if any if you had any experience of this and could offer some advice in this area? I also intend to take expert advice but would welcome anyone's experience in this area.

I had some specific questions as well:
- Can the trust be set up so that multiple people can put money into it? For example we have elderly parents who want to leave her money, so could we set the trust up now and leave it 'dormant' so that they could put money into it on their deaths (through their wills)?
- Has anyone used the Mencap trust specifically and has any experience with this? I liked the idea of their trust but didn't like the idea that they wanted to be the sole trustee and only had face to face contact with the beneficiary once per year.

Thanks for any advice anyone can provide.

[Deleted User]

My advice on an issue so complex would be to get the best possible legal advice, personally I would never comment on such complex and legal issues.

pinkmouse

Get a lawyer, one who specialises in estate planning and trusts. It is horrendously complicated but they will be able to advise you what way to go for your personal circumstances. It will likely be expensive, just to forewarn you about that. They will be able to answer questions and sort it all out.

We are trying to set something like this up at the moment but it was a whole lot more difficult than we realised. So aye, get a lawyer, a specialist one.

BucksLady

antilles wrote: »

- Has anyone used the Mencap trust specifically and has any experience with this? I liked the idea of their trust but didn't like the idea that they wanted to be the sole trustee and only had face to face contact with the beneficiary once per year.

.

Have you asked whether they might allow additional trustees?

Mr_Costcutter

antilles wrote: »

- Has anyone used the Mencap trust specifically and has any experience with this? I liked the idea of their trust but didn't like the idea that they wanted to be the sole trustee and only had face to face contact with the beneficiary once per year.

.

I do know a couple of people who have taken up this service, but hadn't realised that 'additional' trustees weren't allowed. I can understand your concern, and my suggestion would be to have a chat with them about that.

LocoLoco

I set a trust up for my son through Mencap a few years ago. I don't have a fortune to leave; there's a life insurance policy that will pay out when I die and a small pension. For us it has worked very well. Specialist solicitors are very expensive (the cheapest quote I got was for over a thousand pounds and Mencap at the time were charging about £300 to set everything up). I was able to talk to their solicitor and get free advice with regards a difficult family situation that I want to protect my son from and the paperwork they sent through was relatively simple to complete. I found them helpful throughout the process and felt reassured.


I remember putting down the names of two friends who were to be involved in the process of deciding what could be taken from the trust. I can't remember if they were called Trustees? But it was possible to involve other people in the decision making process so I picked two people who know my son well and know what would benefit him and what wouldn't. I was also able to write up a list of the kinds of things I am happy for the money to be spent on and explain what sort of things my son would find beneficial. I was also able to write up a list of people I do not want involved in any decisions because I don't feel they would act in my son's best interests - unfortunately it's mostly family members and even more unfortunately the solicitor told me it's very common for adults with learning difficulties to be financially exploited so they often have people leaving a list of people who must not be involved.


It's difficult to say whether it all works well in practise because obviously it doesn't come into use until after you die. I do remember there were different types of trust available and there was information on the different types to help you choose which is most suitable for your circumstances. I did fish around on the internet a lot at the time and didn't find anything negative written up - I think if there are problems with mismanagement there would probably be something online as people tend to use forums and write blogs and so on about those sorts of problems. It was a few years ago so it might be worth you doing a bit of online digging to see if any negative reports or reviews come up.


Overall, I felt it was the best situation for us. I don't have family I feel I can rely on to act in my son's best interests and he isn't able to manage money himself. As I say I don't have a fortune to leave him but it will give him a bit extra for days out and a little holiday every now and again.


I don't know if that helps at all but I hope it does I found having to plan for what happens to him when I die very unpleasant and distressing and I did feel they made a difficult situation easier to manage x