How do I protect a disabled beneficiary?

You can protect a disabled beneficiary by setting up a special trust in your will, naming a trusted person to manage it, and adding a letter of wishes to guide them.

Why it matters

Disabled people often rely on means-tested benefits, which can stop if they inherit money directly. For example, someone receiving Personal Independence Payment or Universal Credit might lose payments if they have more than a set amount in savings. A trust keeps their inheritance separate so they continue to get the support they need.

Ways to protect a disabled beneficiary

1. Disabled person’s trust
   • Also called a “section 48 trust” under UK law.
   • Holds assets for the disabled person without affecting benefits.
   • Trustees decide when and how to pay funds to meet their needs.
2. Appoint a trustee or deputy
   • Pick someone you trust—perhaps a close friend or family member—to oversee the trust.
   • They must act in the beneficiary’s best interests and follow any rules you set in your will.
3. Letter of wishes
   • A private note explaining how you want the trust money used (e.g. for holidays, education or care).
   • It isn’t legally binding but guides trustees on your intentions.
4. Consider a Lasting Power of Attorney (LPA)
   • Allows a trusted person to make health and financial decisions for your beneficiary if they become unable to do so themselves.

Common mistakes

• Leaving money outright: Direct gifts can push someone over benefit limits and leave them worse off.
• Vague trustee instructions: Without clear guidance, trustees may not spend in line with the beneficiary’s needs.
• Ignoring fallback plans: If your chosen trustee can’t act, have a backup person named.
• Skipping the letter of wishes: Trustees miss valuable context about how you want funds used.

Next steps

1. Try our Estate Planning Health Check to see if a disabled person’s trust is right for your situation.
2. Draft your will in our paid online service—it guides you step by step through setting up the trust, choosing trustees and writing a letter of wishes.
3. When you receive your will, sign it with the required witnesses and store it safely.

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