What Is a Vulnerable Person's Trust?

A vulnerable person's trust is a special kind of trust for someone who is disabled or otherwise vulnerable. It lets you provide for them throughout their life, often with favourable tax treatment, while protecting their entitlement to means-tested benefits.

What is a vulnerable person's trust?

Leaving money directly to someone who is disabled or vulnerable can cause problems: a lump sum may be difficult for them to manage, and it can reduce or remove the means-tested benefits they rely on. A vulnerable person's trust avoids this. The money is held by trustees who use it for the person's benefit — for their care, comfort, and quality of life — without it counting as their own capital in the same way.

To qualify for the special tax treatment, the beneficiary must meet certain legal conditions (for example, being disabled within the meaning of the rules). Where someone has additional needs but does not meet those conditions, a discretionary trust can achieve something similar with more flexibility.

Who is it for?

• A child or adult with a disability or long-term health condition
• Someone who may not be able to manage money or live fully independently
• A beneficiary who receives means-tested benefits you want to protect
• Families who want to treat all their children fairly while giving one child extra protection

How it works in your will

You appoint trustees to manage the trust in the beneficiary's best interests, and you can leave a letter of wishes describing the kind of support you would like them to provide. Parents of young children often also appoint guardians separately, and deliberately involve both sides of the family in the different roles so everyone stays connected to the children's lives.

Things to consider

• The tax advantages depend on the beneficiary meeting specific legal conditions — this is an area where advice is important.
• If those conditions are not met, a discretionary trust is often the flexible alternative.
• Choose trustees who understand the person's needs and will act in their best interests over many years.

A vulnerable person's trust is one of several trusts you can include in a will — others include the discretionary trust and the life interest trust. Our guided questionnaire can set up common trusts, and every will is checked by a qualified solicitor. Because these trusts depend on specific legal conditions, we recommend you book a call with our team to talk through your family's situation.