02 May Estate Planning Tips When Dealing with Disabled Beneficiaries
Approximately 15% of British Columbians are recognized as having some type of disability. For many of those individuals, their disability has a direct impact on their ability to plan and control their own day to day affairs, and their estate planning.
With estate planning, there are legal documents that can be prepared to help individuals with disabilities, their families and caregivers, tailored to their individual needs. For example, an adult can leave a gift in their Will to a person with a disability by creating a trust in the Will-maker’s Will. On the death of the Will-maker, the Executor or Trustee appointed in the Will can act to administer the terms of the trust for the specified beneficiary. During life, adults may also create an inter vivos trust to transfer assets into the trust for the benefit of the disabled beneficiary. The trust is managed by the named trustee.
These trusts can significantly assist the vulnerable beneficiary by safeguarding some or all of their receipt of disability benefits.