More about trusts

Money from a discretionary trust is not currently regarded as money the beneficiary is entitled to, but as money legally belonging to the trustees.

Trustees look after the money and decide how it will be used. This means that if managed in a certain way, the money would not be taken into account when the beneficiary applies for welfare benefits.

Setting up a discretionary trust

A discretionary trust should not contain conditions which would lead to money from the trust being seen as belonging to the beneficiary (unless that is what’s intended). So the intended beneficiary shouldn’t be the only person named in the trust; if they are the money could be treated as theirs. For example a brother or sister could also be named, even if it’s not planned for them to receive money.

If no will is made then the money or property will be distributed to family members under legislation made in 1925 called ‘Laws of Intestacy’. The Laws are based on old fashioned family values so the money wouldn’t necessarily go to the people you wanted it to. For example an unmarried partner or children of an unmarried partner would get no money at all.

How do I find a solicitor to help me make a will or trust?

Rethink has set up a company called Rethink Trust Corporation which has a specialist trust scheme. It is not a charity as it has to charge fees in order to cover its expenses. It acts as a trustee of trusts for people with mental health conditions such as schizophrenia. Rethink Trust Corporation uses the law firm Clarke Willmott to deal with the legal side of this work.

Their contact details are:

Clarke Willmott
Blackbrook Gate
Blackbrook Park Avenue
Taunton
TA1 2PG

Website: www.clarkewillmott.com     Tel: 0845 209 1730
Email: steven.howells@clarkewillmott.com