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Plan for your child with special need's future with a Trust

Updated: Oct 20, 2023

If you have a child with special needs who is dependent on you, there is always a worry about what will happen when you’re no longer around. It is important to put a plan in place for this and as soon as possible.

Special Needs Trust

Here are 2 ways you can ensure they’re looked after.


1. A Discretionary Trust: this is is a legal arrangement which allows you to leave money or assets behind for your child, you can appoint a trustee like a family member or solicitor who will ensure the proceeds are used to benefit your child. This arrangement can be incorporated into your will. The trustees are usually guided by a letter of intent written by the parents. This will set out the manner in which you would wish the trustees to exercise their power and discretion.


2. A Life Insurance Trust: this is a life insurance policy which you take out on your life which pays a lump sum to the trustees when you die, who will ensure the proceeds are used to benefit your child. Putting life insurance in trust for you child could also help reduce the chance of an inheritance tax bill because the money in the trust is exempt. It will also speed up how quickly the money is released as the


re is no need to wait for probate.


A special needs trust will protect your child’s future and give you peace of mind. The main benefit of putting the money in trust means that it will not affect any entitlement your child has to state benefits or medical card in the future. A financial advisor like myself can help to set up a savings or life insurance plan and a solicitor can assist with the Discretionary Trust.







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