Financial provision

Trusts and trustees - a quick guide

If it does not seem wise to leave money directly to a loved one, you might want to think about setting up a trust. A trust is a legal arrangement that enables you to leave your money and assets under the control of trustees, chosen by you, for the benefit of others.

Trustees are responsible for looking after your trust fund, and your loved one's wellbeing, but not for providing personal support or care. Mind can be appointed as a trustee.

By creating a trust it should be possible to enhance the quality of life of your loved one, without jeopardising benefit entitlement (unless there are major changes in state funding or care). You can set up a trust for a number of beneficiaries.

Mind's booklet Making Provision helps you make the best possible long-term provision for your loved ones. To order a free copy of Making Provision click here.

Gordan Ashton, a district judge and Master of the Court of Protection, set up a trust for his son:

"...We decided to set up a discretionary trust. This would enable our trustees to choose the best ways to use the money to suit our son's particular needs, without resulting in the loss of state benefits, or incurring local authority charges. Our trustees were given extended powers, allowing them, for example, to provide a home, personal items, or even pay money to a carer on the basis that helping the carer would be helping our son....

The terms of our trust are included in our wills, in what is called a will trust. Despite making our wills as flexible as possible, we have revised them many times. … Like all concerned parents we can only do our best, and strongly recommend others to research the subject fully before consulting a solicitor who, ideally, should be experienced in this specialist area…."

From an article first published in Openmind magazine, Nov/Dec 1997.

Order a free copy of our Trustee service information pack.

Wills
Click here for information on making a will.

To order a free copy of Find peace of mind, our step-by-step guide to making a will, click here.