Disabled person’s trust—life interest
Disabled person’s trust—life interest

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Disabled person’s trust—life interest
  • Parties
  • Background
  • Schedule 1Assets
  • Schedule 2Administrative powers
  • Schedule 3Additional administrative powers

This TRUST is made on [date].

Parties

  1. 1

    [settlor] of [address] (the Settlor) and

  1. 2

    [original trustees] of [addresses] (the Original Trustees)

Background

  1. (A)

    The Settlor wishes to make this Trust for the benefit of [name] (the Disabled Beneficiary) and has transferred to the Original Trustees the assets described in Schedule 1 to be held on the following trusts.

  2. (B)

    The Disabled Beneficiary is a disabled person within the meaning of that term in the Finance Act 2005, Schedule 1A.

This Deed provides:

  1. 1

    Definitions and interpretation

    1. 1.1

      In this Trust:

    2. Charitable

      1. means charitable (and exclusively charitable) according to English law;

      Charity

      1. means a trust, corporation, association, society or other institution established only for charitable purposes and Charities has a corresponding meaning;

      Discretionary Beneficiaries

      1. means (subject to clause 5) the following persons:

        1. (a)

          [the Disabled Beneficiary’s spouse;]

        2. (b)

          the descendants of the Disabled Beneficiary; and

        3. (c)

          the spouses, widows and widowers (whether or not remarried) of the descendants of the Disabled Beneficiary,

        and Discretionary Beneficiary has a corresponding meaning;

      [spouse

      1. shall include a civil partner registered under the Civil Partnership Act 2004 and a spouse of the same sex, and a person is a surviving spouse whether or not