My wife and I are the parents of one son, an only child, who has mild LD but manages to hold down employment with the local council, so will have a pension from his employers plus state pension. So in general we are not planning about ensuring his benefits and support continue, although he does have DLA (soon going for his PIP assessment which could change the situation). Our main concern is that he is not capable of managing monies and is very vulnerable, if someone should take advantage. We are therefore looking for a means for someone to control his inheritance from us and any monies we can accumulate when we are not there to guide him
I recently attended a Mencap Planning for the Future Seminar and understand the types of Trusts and what you should do with layering of Trustees etc. What I am unsure about can is what is a trust in legal terms, does it have to be registered somewhere to exist? Can you set up a Trust yourself or does it have to be done by an institution with legal status like a trust company, bank or solicitor? The other item I am not sure about is the tax implications with Life time trusts on items like interest on monies held. At the moment we are saving monies in cash ISA’s which are tax exempt and all taking advantage of the tax free allowance on interest. Is there a disadvantage on allowances if you set up a lifetime Trust? Would be interested to hear form anyone who has had experience of this or the expert members of the Hub.