A Disabled Persons Trust is a trust which can be created during lifetime or on death. The aim of this type of trust is to assist disabled persons without prejudicing any rights or benefits that person receives from the government/local authorities.
Sometimes a disabled person may be entitled to benefits which are means tested. This means that if that person was to inherit a sum of money over a certain threshold then those benefits would stop. In the case of a disabled beneficiary, these benefits may not necessarily be cash and could be hugely disruptive for the beneficiary to lose.
A Disabled Persons Trust is a very specialised type of trust which can have negative tax implications if not correctly entered into.
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There are numerous types of trust available, the most common types are: