Protecting vulnerable beneficiaries: what families need to know

June 9, 2025

News

When planning your Will, it’s natural to want to provide for the people you love. But when a potential beneficiary is vulnerable, perhaps due to a disability, mental health condition, or long-term illness, leaving them a straightforward inheritance outright, may unintentionally do more harm than good.

At our firm, we frequently advise clients on how to protect vulnerable beneficiaries in a way that is both compassionate and legally robust. Here’s what you need to consider and how you can plan with peace of mind.

What do we mean by ‘vulnerable’?

A vulnerable beneficiary may be:

• A child or adult with a learning disability or autism

• Someone who lacks capacity to manage their own finances

• A loved one with mental health difficulties

• An elderly relative receiving care or local authority support

In these situations, a standard gift in your Will could affect their entitlement to benefits, overwhelm them, or put them at risk of financial abuse.

The risks of a direct inheritance

Many state benefits and support packages are means-tested. If a vulnerable person receives a large inheritance directly, it can:

• Disqualify them from their support or funding

• Be misused, mismanaged or lost

• Place undue pressure or responsibility on family members

We’ve seen families unintentionally jeopardise a loved one’s care arrangements by leaving assets to them outright, often with the best of intentions, but without specialist advice.

The role of a trust in safeguarding inheritance

One of the most effective ways to protect a vulnerable beneficiary is through a Discretionary Trust or Disabled Person’s Trust in your Will.

These trusts allow you to:

• Leave money or assets for the person, without giving it to them directly

• Appoint trusted people (your “trustees”) to manage the funds

• Protect the inheritance from being counted as part of the person’s own assets

• Provide ongoing support for care, living costs or personal extras

Trusts can be tailored to suit your family’s unique circumstances and ensure your loved one is cared for, without affecting their wider support network.

Appointing the right trustees

Your trustees will be responsible for managing the money or assets placed into the trust. It’s important to choose people who are reliable, financially sensible, and who understand (or are willing to learn about) the beneficiary’s needs. Many of our clients choose a mix of family members and professional trustees for balance and reassurance.

Additional considerations

You may also wish to:

• Write a Letter of Wishes to guide your trustees on how the money should be used

• Plan for long-term care and future decision-making more broadly

We can advise on all of these aspects as part of your estate planning.

Getting the right advice

Every family is different. What works for one household, might not for another. That’s why we take the time to understand your circumstances and guide you through your options with clarity and sensitivity.