Complex Probate and Wills

Child Trust Funds

Parents and grandparents of children with disabilities should take steps to ensure that assets they want to leave to their disabled child do not deny them means-tested benefits when they become adults.

Simon Mee, a wills and estate planning specialist with law firm, Charles Lucas & Marshall says the simplest way of achieving this is by setting up a trust fund.

“This enables money or assets that parents, grandparents or other family members want to leave to the child to be ring-fenced,” he says. “The benefits and care structure they have set in place over many years will not then be jeopardised when the child becomes an adult.”

Sadly, many families discover too late that money or assets which have been set aside through a will to improve the welfare of a disabled family member can, in fact, create additional problems for that beneficiary. This may be because it affects the disabled person’s right to state support or the beneficiary may not be able to manage the money themselves.

“All benefits are mean tested with a sliding scale of entitlement,” says Simon Mee. “What is intended as a generous and responsible gesture can end up having a negative impact on the disabled person’s quality of living.

“These problems can be avoided by setting up a trust fund to manage the assets on behalf of the beneficiary. The Trust can appoint trustees to manage the fund and the person setting up the Trust can also write a letter of wishes, setting out their intentions and wishes as to how the trust fund should be managed.”

One mother who has set up a trust fund for her daughter is Elly Hase of Newbury. A mother of two, Elly’s oldest child, Ciara, six, was born with a rare chromosome disorder which means her levels of understanding are lower than other children her age. Doctors do not know how Ciara’s condition will progress.

“As I was getting divorced I thought it also seemed sensible to make a new will,” said Elly. “I wanted to make provision for my four year old son but also realised I needed to protect Ciara. The last thing I want is for the care structure we are developing for her to be taken away.

“It does mean, via my letter of wishes, I have leant heavily on my trustees to make decisions for Ciara. Equally though, my parents, who want to leave money for Ciara in their own wills, can now use the trust fund to do that and that gives them peace of mind .”

For further information please contact Simon Mee on 01635 521212 or simon.mee@clmlaw.co.uk

Lyn Ellins - Wills Expert

Calls are growing for greater regulation of will-writers following a Panorama programme that exposed the risks and the sharp practices used by many unregulated will-writers.

Lyn Ellins, a lawyer Swindon firm, Charles Lucas & Marshall says her firm have been trying to highlight this problem for many years – following a series of botched cases where people have had to come to them for legal advice.

“Many of these will-writers claim to be the cheap option but often there are hidden costs and families end up paying additional money because they have to come to a lawyer to sort out the mess,” she says.

Lyn Ellis says some of the mistakes they have had to sort out have been as simple as not getting a will witnessed properly.

“A family came to me because they knew their father had wanted to give money to a charity. However because the will had not been witnessed properly it was invalid so their father was officially intestate ie he had not made a will.

“We had to apply for a grant so we could administer the will, then write a deed of variation which all the beneficiaries had to agree and sign.

“Only then could we collect in the money from the father’s estate and distribute it as he had wanted.  The costs were something like double what they should have been, which reduced the net estate and meant the charity and the family all got less.”

Unlike many will-writers, solicitors are qualified to write wills and are up to date with legislation. If anything should anything go wrong – their obligatory insurance cover means clients are protected against errors.

“Most law firms are happy to offer a free half hour to check a will or advise on making one,” says Lyn Ellins. “They will even visit the client at home if they cannot make it into the office. They will also give you a clear idea of cost from the start.”

Charles Lucas & Marshall has added its support to the growing Law Society campaign to introduce greater regulation of will-writers and provide consumers with more protection.

You can contact Lyn Ellins on 01793 511055 or lyn.ellins@clmlaw.co.uk