Vulnerable
Persons Trust

A Vulnerable Persons Trust (VPT) is designed to help avoid a specific problem for someone who, for instance, receives a compensation settlement for historical abuse or personal injury, or who may have special needs or other disabling factors that make them vulnerable to exploitation or unable to manage their own affairs. In such cases, they may receive a large sum of money to help them with those needs, but which could then be counted as capital and thus could restrict access to other benefits or financial support.

A VPT provides a legal framework to hold and manage assets on behalf of a vulnerable beneficiary. With it, any settlement payments, grants or other financial assets are ‘ring-fenced’, so they usually won’t be taken into account when being assessed for other benefits.

The benefits of a Vulnerable Persons Trust include:

The beneficiary’s interests are protected

• The assets held in the trust (such as compensation payments) can only be used for their treatment and living expenses

Access to means-tested benefits

• While the beneficiary can benefit from the Trust, the assets held in it won’t be considered when assessed for other benefits

Peace of mind

• A VPT ensures any compensation or other assets will only be used for their intended purpose

Inheritance Tax

• Unlike some trusts, VPTs are not liable to certain Inheritance Tax charges

Capital Gains and Income Tax

• With a VPT, the Trustees can use the beneficiary’s full Capital Gains Tax exemption, enabling them to maximise the funds available

If you’re responsible for a disabled or vulnerable dependent, or you expect or have received a lump-sum, a Vulnerable Persons Trust could prove invaluable protection. Not everyone is eligible though, and we can help and advise on whether a tailored VPT would be right for your particular situation.

To talk to our experts, contact us now to arrange a home visit.