How to Leave an Inheritance That Truly Protects a Vulnerable Loved One

Leaving money to someone you love should feel like peace of mind. But when that person is vulnerable, because of disability, mental health, or age, it can actually do more harm than good if it’s not planned properly.

We’ve seen it happen far too often: money left with love, but received in a way that causes stress, loss of benefits, or worse…puts them at risk of financial abuse.

Here’s how to make sure that doesn’t happen.

Why a Direct Inheritance Can Backfire

If your beneficiary relies on means-tested benefits like PIP, DLA or Attendance Allowance, inheriting money outright could mean:

• They lose access to financial support
• They’re left without anyone to help manage it
• They become a target for manipulation or fraud

And even if they can manage money, the emotional pressure after a loss can be overwhelming.

A Better Way: Use a Trust That Protects Them

With the right trust in your Will, you can leave support, not stress.

Discretionary Trust

• Trustees decide how and when funds are used.
• Keeps benefits safe and decisions flexible.

Disabled Person’s Trust

• Tailored for beneficiaries with qualifying conditions.
• Offers tax advantages and peace of mind.

Personal Injury Trust

• Often used for compensation payments to protect access to vital support.
• These trusts are designed to care for the person, not just hand them a cheque.
• They can cover anything from extra care and housing to personal items or even treats, without disrupting their life or their independence.

What Else You’ll Want in Place

 Trustees who understand your loved one’s needs and can act with care

• A Letter of Wishes to guide decisions with personal insight
• Guardians, if the beneficiary is a minor
• A Lasting Power of Attorney (if appropriate) to manage decisions if capacity changes
• Regular reviews every 3–5 years, or after any big life change

And Yes, There Are Tax Benefits Too

 When set up correctly, these trusts may offer:

• Income taxed at the beneficiary’s rate (often lower)
• Capital Gains Tax with a higher threshold
• Inheritance Tax exemptions for certain trusts (like Disabled Person’s Trusts)

A Common Struggle We See

Many parents worry: “What happens when I’m gone?”

They’ve even told us they considered leaving everything to a friend or charity just to avoid messing it up. That’s heartbreaking. And unnecessary.

With the right legal planning, you can make sure your vulnerable loved one is safe,  supported, and legally protected.

Your Intention. Their Protection. Our Expertise.

Every family is different. That’s why we don’t believe in copy and paste solutions. We’ll walk you through the right setup, structure it around your unique situation and make sure everything works for and protects with what matters most: the people you love.

Want to get it right? Let’s have the conversation.