All Needs Protective Trusts
Sometimes when making our Wills we have beneficiaries who are in need of protection because they are vulnerable. For example:
- Beneficiaries who have gambling, alcohol abuse or drug dependency issues;
- A beneficiary who has a disability but does not fall under the classification of severe disability which would allow you to pay into a Special Disability Trust;
- A person who has very poor financial management skills;
- A beneficiary that may be subject to the predatory behaviour of another person.
If you have a vulnerable beneficiary that you need to provide for then you may wish to protect their share of your estate by placing it into an All Needs Protective Trust. An All Needs Protective Trust is a trust that is established in your Will for the benefit of a vulnerable beneficiary.
The trustees that you appoint may have the discretion to apply the funds of the Trust to the benefit of the vulnerable beneficiary. You may choose to appoint your Executor as the Trustee of the fund or if you do not feel this is appropriate another person or a professional Trustee company.
As with Testamentary Trusts there are ongoing costs and responsibilities associated with an All Needs Protective Trust. Please contact our Estate Planning team if you would like more information.
