Finally doing our Wills and we need to set up a Trust for our adult daughter who has learning difficulties and is on the autistic spectrum. We also plan to do our Power of Attorneys but I can do that myself as I already did my Mum’s and found it very straightforward. We want to ensure she is well provided for but that her partner cannot have access to her inheritance as he is a spendthrift!
Next week we have a meeting with a solicitor who specialises in Trusts.
Any hints or tips before we meet with her please? Will she tell us upfront how much all this will cost? Thanks.
That is a good idea.
They will tell you how much it will cost upfront and that if they are the trustees going forward they will give an indication of the annual fee for the review.
You have a starter for ten knowing you want to know the costs upfront and that you want control of the money for your daughter.
In what way is that money controlled - clothing, living expenses, opticians, dentist etc.
have a think about weekly, monthly, quarterly and annual allowances.
A new winter coat, summer sandals and sunscreen - how controlling do you want to be.
These new pre-load cards, do they give a list of spending like a bank card would? It could be a consideration.
Futureproofing - the trustees will need to be allowed to make decisions about things like cashless or even bitcoin money or preloaded cards, whatever the future of money is.
Anything you will not allow her money to be used for in big spends or if she is living with boyfriend, that she will only pay half of the cost and him the other half eg a new television, hoover, sofa, bed etc to ensure that he is kept in check and they are bought on a need basis and mid price range if that can be monitored or controlled somehow.
Daily, weekly, monthly caps on spending and trustees to review annually.
A major question
How can the money be protected for the benefit and provision of your daughter.
How can the money be protected so he cannot claim on it if they live together then split up.
Same for if she has relationship with anyone else.
What about marriage and divorce? These things need to be thought about and if they don’t ask then are they worth your money are they worthy of looking after your daughters funds?
As you have said, you want the money protected to provide for your daughter so what are the options for this.
I am sure they will have the answers and have much more besides.
Another thought
Your funeral costs and arrangements.
If you have not made provision for them you need to have this covered beforehand or through your estate.
Do NOT make it just for your daughter, it needs to be a Discretionary Trust, with more than one beneficiary and trustees who control the money. In my case, I’m in the process of setting up a Trust for both sons and grandson, and if none of them survive, my nephew and niece. If it’s in her sole name Social Services will take it all for her care. I know someone in this situation.
My little cottage that cost £16,700 in 1976 has increased in value so much, because of where we live in the New Forest, that it immediately sends me into Inheritance Tax territory! I’ve had to take some specialist advice on how to minimise this, and ensure that my eldest can stay here without a tax burden after I pass away. We moved in when he was 6 weeks old, so it’s the only home he’s ever known. I also need to make proper provision for M in such a way that Social Services won’t be able to demand anything.
Well we met with solicitor today and she is drafting the Wills and including Disabled Persons Discretionary Trust. She was everso thorough and we discussed all sorts of scenarios. This will mean she can still get her benefits and be provided for through the Trust. She assures us that social services cannot get at her Trust Fund.
There was such a lot to take in and I am full of cold (and a fuzzy head) today so OH probably took in more than I did. One point we have got to consider is my daughter is not expected to have children and my slightly older son has none and that doesn’t look likely either. So she asked what would happen to the estate when the final one of them passed away. It’s a bit of a sad thought really. She asked about charity but my OH is not keen on donating to charities.
She did say that current thinking is that Power of Attorney is even more important than a Will so we are going to do that for each other asap. She offered but Mum and I Did hers on the Gov.uk site and it was very straightforward. She did say that it is now taking 20 weeks minimum whereas it was 8-10 weeks before.