Expert advice on creating and managing vulnerable person trusts
When someone you care about has a disability or vulnerability, securing their financial future becomes a priority. A vulnerable person trust (also known as Disabled Persons Trust) offers a flexible way to protect their inheritance or other assets. It allows funds to be managed on their behalf, ensures their needs are met, and helps prevent financial exploitation.
At Nelsons, we understand the complexities involved in setting up disabled persons trusts. Our expert team will guide you through the process with clarity and care, helping you create arrangements that provide both financial security and peace of mind for your loved one’s future.
Contact us today on 0800 024 1976 or fill in our online enquiry form for expert advice on vulnerable person trusts.
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Services we provide
Our comprehensive vulnerable person trust services include:
- Trust establishment – Setting up vulnerable person trusts tailored to your loved one’s specific needs and circumstances
- Letter of wish – assisting with a bespoke letter to set out why you have created the trust and what outcomes you hope it will achieve. This helps trustees understand the spirit behind your decisions, not just the legal structure.
- Tax planning – Maximising inheritance tax reliefs and income tax advantages available for vulnerable beneficiaries
- Will integration – Incorporating trust provisions into your will to protect future inheritances
- Trustee guidance – Advising trustees on their responsibilities and duties towards vulnerable beneficiaries
- Trust administration – Ongoing support with trust management, accounts, and compliance requirements
- Review and updates – Ensuring existing trusts remain fit for purpose as circumstances change
Our process
1. Initial consultation: We discuss your loved one’s situation, their current and future needs, and your objectives. We’ll explain how a vulnerable person’s trust works and whether it’s the right solution.
2. Assessment and planning: Our team reviews existing financial arrangements, tax implications, and the ongoing needs that need to be met. We develop a strategy that protects both assets and the individual.
3. Trust drafting: We prepare the trust documentation, ensuring it meets legal requirements and achieves your goals. You’ll have time to review and raise any questions.
4. Implementation: Once approved, we help establish the trust, transfer assets where needed, and ensure all administrative requirements are met.
5. Ongoing support: We remain available to advise trustees, handle any issues that arise, and review the trust as circumstances evolve.
Why Choose Nelsons
- Specialist expertise – Our private client team has extensive experience creating vulnerable person trusts for clients across Derby, Leicester, and Nottingham, and beyond. We understand both the legal framework and the practical realities families face.
- Tax efficiency – Vulnerable person trusts can qualify for special tax treatment. We’ll ensure you benefit from all available reliefs, potentially saving thousands in inheritance tax and income tax.
- Ranked by Legal 500 – Our private client team is recognised by the Legal 500.
- Whole-of-life approach – We consider not just the immediate situation but how needs might change over time, creating flexible arrangements that adapt to evolving circumstances.
Ready to discuss vulnerable person trusts? Contact our expert team on 0800 024 1976 or complete our online enquiry form. We have offices in Derby, Leicester, and Nottingham.
Meet the team
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Tom GlenisterSenior Associate & Solicitor
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Vulnerable Person Trusts FAQS
Below, we have answered some frequently asked questions concerning vulnerable person trusts
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What is a vulnerable person trust?
A vulnerable person trust (also called a disabled persons trust) is a special legal arrangement that holds assets for someone with a disability or vulnerability. The trust owns the assets rather than the beneficiary directly, which means they don’t count towards means-tested benefit assessments. The trustees manage the assets and can use them for the beneficiary’s benefit when appropriate.
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Who qualifies as a vulnerable person for trust purposes?
Someone qualifies as vulnerable if they receive certain disability benefits (like Personal Independence Payment or Disability Living Allowance) or lack mental capacity to manage their affairs. Children under 18 can also be vulnerable beneficiaries in certain circumstances. We’ll assess whether your loved one meets the criteria during our initial consultation.
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Will a vulnerable person trust affect benefit entitlements?
When structured correctly, a vulnerable person trust shouldn’t affect means-tested benefits. Because the beneficiary doesn’t own the assets directly, they’re not counted in benefit assessments. However, the trust must be set up properly and trustees must manage distributions carefully to maintain this protection.
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What tax advantages do vulnerable person trusts offer?
Vulnerable person trusts qualify for special tax treatment. Trust income and gains can be taxed as if they belonged directly to the vulnerable beneficiary rather than at the higher trust rates. This typically results in substantial tax savings. The trust may also qualify for inheritance tax reliefs when properly structured.
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Who should be trustees of a disabled persons trust?
Trustees should be people you trust to act in your loved one’s best interests. Family members often serve as trustees, but you can also appoint professional trustees or a combination. We recommend at least two trustees and can advise on suitable candidates for your situation.
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Can I set up a vulnerable person trust in my will?
Yes, many vulnerable person trusts are created through Will provisions. This protects any inheritance for your loved one whilst preserving their benefit entitlements. We regularly incorporate trust clauses into Wills for parents and family members who want to provide for disabled relatives after they’re gone.
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How much does it cost to set up a vulnerable person trust?
Costs vary depending on complexity, but we’ll provide a clear fee estimate at the outset. Many families find the long-term tax savings and benefit preservation justify the initial investment. We offer transparent pricing with no hidden charges.
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What happens if circumstances change?
Well-drafted vulnerable person trusts include flexibility to adapt to changing needs. Trustees have discretion over distributions, and in some cases, trust terms can be varied. We recommend periodic reviews to ensure the trust continues to meet its objectives as your loved one’s situation evolves.
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