Leaving money to disabled relative only

Downthedrain

I have a severely disabled relative who my wife and I would like to provide for in our wills. A major concern is that we do not want any money to be left to her family in the event of her subsequent death. The money needs to be exclusively for her personal care during her remaining life. Upon her death any residual money should transfer to a number of charities. 

What is the mechanism for this, and is this straightforward for a solicitor to draw up?

Keep_pedalling

Your estate needs to be left in trust for her. If you don’t trust her family to manage the trust then you will need to appoint professional trustees. I would recommend you seek out a STEP solicitor who can advise you and draft up appropriate wills.

Grumpelstiltskin

Is the relative in receipt of any means tested benefits? if so you need to consider the effect of their inheritance on these benefits.

msb1234

https://www.renaissancelegal.co.uk/blog/recent-court-case-clarifies-how-an-inheritance-effects-mean-tested-benefits/#:~:text=Blog%3A%20Recent%20court%20case%20clarifies%20how%20an%20inheritance%20affects%20mean%20tested%20benefits&text=In%20previous%20blogs%20we%20explained,future%20financial%20security%20at%20risk.

Marcon

Downthedrain said:

I have a severely disabled relative who my wife and I would like to provide for in our wills. A major concern is that we do not want any money to be left to her family in the event of her subsequent death. The money needs to be exclusively for her personal care during her remaining life. Upon her death any residual money should transfer to a number of charities. 

What is the mechanism for this, and is this straightforward for a solicitor to draw up?

 A discretionary trust should fit the bill nicely. It doesn't need to be complicated, but you do need to ensure you give the solicitor clear instructions on exactly what you want to happen. 

Downthedrain

The relative does receive substantial means-tested benefits. The effect upon these was seen recently when a divorce settlement resulted in those benefits being removed until the settlement was exhausted. The result was the money was gone within a year due to having to self-fund care.

I'll further research a discretionary trust. Could a mechanism be in the wills to set up the trust only after our deaths and conditional on the relative being alive? This would preclude any requirement to set up a trust beforehand.

Professional trustees would be a requirement. The only child and sole relative of the person is not trustworthy and has repeatedly acted dishonestly.

 

Keep_pedalling

Downthedrain said:

The relative does receive substantial means-tested benefits. The effect upon these was seen recently when a divorce settlement resulted in those benefits being removed until the settlement was exhausted. The result was the money was gone within a year due to having to self-fund care.

I'll further research a discretionary trust. Could a mechanism be in the wills to set up the trust only after our deaths and conditional on the relative being alive? This would preclude any requirement to set up a trust beforehand.

Professional trustees would be a requirement. The only child and sole relative of the person is not trustworthy and has repeatedly acted dishonestly.

 

Yes, the wills can be drafted so that a trust is automatically created on the second death. Make an appointment with a solicitor asap.