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🧾 Trusts for Parents: Should You Set Up a Lifetime Trust or a Will Trust?

  🧾 Trusts for Parents: Should You Set Up a Lifetime Trust or a Will Trust? 👨‍👩‍👧‍👦 Why This Matters As parents, especially those of children with additional needs, we often carry the silent worry: "What will happen to my children if something happens to me?" Setting up a trust can be a powerful tool to secure their financial future, protect assets, and reduce tax. But there’s a big choice to make: ❓ Should you create a Lifetime Trust now , or include a Trust in your Will (Testamentary Trust)? Let’s break it down — especially if you're thinking about both a special needs child and a typical child , and possibly passing on your home . 1. ✅ Lifetime Trust – Great for a Vulnerable Person’s Trust (VPT) If you have a disabled or vulnerable child , a Vulnerable Person’s Trust (VPT) is one of the most generous and tax-efficient options available – but only if it qualifies under Section 89 of the Inheritance Tax Act 1984 . 🔍 Key features of a Lifetime VPT...
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✅ FAQ: Lifetime Trusts – VPT vs. Bare Trust vs. Discretionary Trust

  1. What is a Lifetime Trust? A lifetime trust is a legal arrangement where assets are transferred by the settlor into a trust during their lifetime , to be managed by trustees for the benefit of beneficiaries. Unlike a Will trust , which comes into effect only on death, a lifetime trust is active immediately . 2. What Are the Main Types of Lifetime Trusts? Vulnerable Person’s Trust (VPT): For disabled or vulnerable beneficiaries (as defined by HMRC). Bare Trust: The beneficiary has an absolute right to both income and capital ( i.e., the beneficiary can demand the trust assets at any time once of legal age, and the trustees have no discretion ). Discretionary Trust: Trustees have full discretion over how and when beneficiaries receive income or capital. 3. What Are the Tax Benefits of a VPT? No 20% entry charge , even if value exceeds the £325,000 nil-rate band (if Section 89 conditions are met). No 10-year or exit charges (unlike discretionary trusts). ...
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How Disability Rights UK Supports Parents of Special Needs Children

  Empowering Parents of Special Needs Children: How Disability Rights UK Supports You As parents of children with special needs, navigating the world of education, healthcare, and employment can often feel overwhelming. Ensuring that your child receives the right support and opportunities is essential for their development and future. Thankfully, organisations like   Disability Rights UK   are dedicated to making this journey easier by providing invaluable resources, advocacy, and support for families like yours. Disability Rights UK is a key resource for parents of children with special needs. Their mission is to empower individuals with disabilities by ensuring equal access to rights, services, and opportunities. From education to employment, they help families navigate the complexities of disability law and services. Let’s dive into how Disability Rights UK supports special needs children and their families and how you can access their services. What Does Disability Ri...
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Career Guidance for Special Needs Children: How the National Careers Service Can Help

Exploring Careers for Special Needs Children: How the National Careers Service Can Help As parents of children with special needs, one of the most important aspects of their future is guiding them toward career paths that not only suit their skills and abilities but also allow them to thrive in environments where they feel supported and valued. Navigating the world of career choices and employment can be challenging, especially for children with special needs, but there are resources available to help make this journey a little easier. One such resource is the   National Careers Service   in the UK, which provides a wealth of tools to help individuals discover their skills, explore career options, and take the necessary steps toward employment. But how exactly can this service help children with special needs? Let's dive into the   Discover Your Skills and Careers   tool offered by the National Careers Service and explore how it can be a useful resource for special n...
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Empowering Special Needs Children's Careers: Scope’s Support to Work Service

   Scope's Employment Services for Special Needs Children As parents of children with special needs, we often face challenges in guiding our children towards a fulfilling and independent future. One of the most crucial aspects of this journey is helping them find meaningful work and build skills that will serve them throughout their lives. The road to employment can sometimes feel daunting, but there are valuable resources that can make a world of difference. One such resource is   Scope’s Employment Services , which is dedicated to providing tailored support to individuals with disabilities. In this blog post, we will explore how   Scope's Support to Work service   can be a life-changing resource for your child, and how it can help you navigate the steps toward securing meaningful employment. What is Scope’s Support to Work Service? Scope is a charity that has been supporting people with disabilities for many years, and their   Support to Work service ...
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