If you have a child or adult who is disabled then you will have to create a Disabled/Vulnerable Persons Trust if they are not able to handle their financial affairs. 

By having this trust in place it will secure the inheritance alongside the benefits the vulnerable person has. If the person passes away their inheritance would go into a different trust which is known as a Discretionary Trust.

When the inheritance is held into a trust the vulnerable person will still receive their benefits and also enjoy the inheritance. Also their children can take a income from the trust and they will get double of the benefits. 

If you do not have this trust the benefits can be suspended and the local authority would take away the inheritance to pay off the benefits. Having a Discretionary Trust is important and adaptable especially if the beneficiaries circumstances are changing. 

Who can qualify as a vulnerable beneficiary?

A beneficiary who is vulnerable has to be someone who is either under the age of 18 and if their parents have died or a disabled person who is qualified for the listed benefits:

• Child Disability Payment
• Personal Independence Payment 
• Disability Living Allowance 
• Increased Disablement Pension

Another term of a vulnerable beneficiary is someone who is not able to make their own decisions because of a mental health condition. To make sure you are covered by the Mental Health Act 1983 check with a medical professional.