A person aged under 18 whose parent has died, or a disabled person entitled to Personal Independence Allowance, Constant Attendance Allowance, Armed Forces Independence Payment or a disablement pension (regardless of whether they receive them) is eligible as a vulnerable beneficiary. When a qualifying trust is set up for a vulnerable beneficiary, the trustees of it can claim special treatment for inheritance, income and capital gains tax. The precise deductions are based on a calculation which takes into account a number of factors. By reducing the amount of tax paid it means the vulnerable beneficiary will get a greater benefit from the bequeathed assets. This is precisely what a Vulnerable Person Trust is intended to achieve.
How can we help?
The calculations for deductions in Income Tax, Capital Gains Tax or Inheritance Tax are separate and based on varying criteria. The calculations are complicated and can be made more so if there is more than one vulnerable beneficiary. The trust also needs to meet certain conditions. For example, the trust's assets must only be capable of being used to benefit a disabled person. To ensure compliance with these complex rules and strict conditions expert advice is needed. We are able to provide this to ensure you can take full advantage of the available deductions.