Who are vulnerable beneficiaries?

Vulnerable beneficiaries include a range of people including:

• 1) Some people with learning or physical disabilities
• 2) People dependent on means tested benefits
• 3) People who suffer with addiction
• 4) People who are easily influenced
• 5) People who are in a difficult relationship
• 6) People who are bankrupt or in an IVA

Why do vulnerable beneficiaries need protection?

If a vulnerable beneficiary receives an outright gift from your estate then it will form part of their assets and can immediately be problematic. Some of the issues it can cause are:

• 1) If the person lacks capacity they cannot confirm receipt of the monies and the estate cannot be finalised
• 2) It can affect entitlement to benefits
• 3) It can be lost very quickly and not provide the long term benefits you might wish
• 4) The beneficiary can be persuaded to spend it on things that are not for their benefit
• 5) It can be included in any financial settlement following divorce proceedings

It is possible to protect vulnerable beneficiaries through the use of trusts. This is a specialist area and as a full member of the Society of Trusts and Estates Practitioners I can provide you with the appropriate advice.