Provided certain conditions are met, a Disabled Person's Trust has more favourable tax treatment for inheritance tax, capital gains tax, and income tax purposes than a Discretionary Trust.
If the following apply, you should consider the preparation of a Disabled Person's Trust:-
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You have at least one potential beneficiary who qualifies as a disabled person;
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You currently have (or expect to have in the future) assets above the inheritance tax nil rate band;
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The disabled person is in receipt of, or will be entitled to claim, means-tested benefits (this would include funding for their care); and
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You want to ensure that the disabled beneficiary is treated as the primary beneficiary.
Call me to discuss your disabled relative's needs and circumstances.