Discretionary Will Trust rules Post - 2024

BigBangTheoryFan
BigBangTheoryFan Posts: 1 Listener
in Universal Credit (UC)

Hello, I need to check two quick points regarding my Will structure for my son who is on LCWRA and Universal Credit.

Firstly, the DWP Risk: Under the strict post-2024 DWP guidelines, is it safer to leave my Will as a generic discretionary trust where my son is not named directly ("direct decendants and charities"), or should I name him in a statutory Disabled Person's Trust? Which option carries the lower risk of a DWP 'deliberate deprivation' challenge? 

Secondly, the Trustee Lock: If he is named as a beneficiary and as a joint co-trustee alongside two of my independent friends - requiring completely unanimous sign-off for all actions - does this joint lock fully satisfy the DWP guidelines to score his personal capital value from the trust as £0?

Thank you

Please note: I am looking for factual legal/DWP guidance only, please. This money is a protective safety net for my son, who has autism, severe executive dysfunction, and chronic fatigue. While I was hoping these funds might eventually serve as a mortgage deposit to secure him a stable home, his conditions mean we genuinely do not know what his future holds or what he will be capable of managing.

This trust is strictly a vital medical and financial safety net to protect his long-term survival and safety (he only has me) so I would deeply appreciate responses sticking strictly to the legal mechanics. Thank you.

Comments

  • Rachel_Scope
    Rachel_Scope Posts: 4,719 Online Community Team

    Hi @BigBangTheoryFan and welcome to the community. Unfortunately, we are not allowed to give legal advice here. I would recommend you speak to a legal adviser. You can find details here https://www.gov.uk/find-legal-advice/find-legal-adviser

  • 66Mustang
    66Mustang Posts: 15,533 Championing
    edited September 12

    I don't know if it helps at all because our situation is a bit different, but we've been dealing with a legacy left in a similar format, but not exactly the same

    In our situation the decision on who gets the money is entirely the trustee's, although they almost always go with family requests. The impression I get is that because the decision isn't made by the individual, there can't be deprivation of capital because they didn't explicitly have the choice as to when/whether to take the money

    The trustees must also take into account the long-term impact of money they pay out and loss of means-tested benefits is an entirely genuine reason for them to decide how and when to pay it out as causing financial loss/hardship (such as loss of income from means-tested benefits) goes against their duty as a trustee

    Based on this it makes sense for him not to be a trustee but obviously the type of trust you are looking into might work totally different to the one we've been dealing with

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