Discretionary Trust in a Will

[Poliver]

I would like to know the pros/cons of setting up a discretionary trust for a child with special needs.

As I understand it, if we (his parents) both die while he is still a minor, then his inheritance (our house essentially) could be managed by a trustee who would manage the trust in our son's interests.

How is this any different from having that same person (the trustee) just manage the assets outside of a trust? That person would also be appointed as a Testementary Guardian for the child regardless of whether or not a trust exists.

DTT (Discretionary Trust Tax) does not seem to apply as my son has already been assessed and has been approved for DCA due to cognitive difficulties.
The income I foresee would be rental income from the house while he lives with the Guardian.

Thanks for your time.

 

[Early Riser]

Does your child currently receive any means-tested allowances - or is he likely to in the future (Disability Allowance, for example). Any assets outside the Discretionary Trust would count towards means.

You are probably aware of this Inclusion Ireland webpage but I will link anyway : https://inclusionireland.ie/information-for-family-members/

 

[Poliver]

No he doesn't receive any such allowances, and I don't foresee him qualifying for them in the future.

 

[Gordon Gekko]

Is the broader issue not that, in the absence of the Trust, your son could just access the value and then be taken advantage of? i.e. that the Trust protects him

 

[Pinoy adventure]

There is a group who organize trusts on behalf of parents of children with special needs.
They are called financial wellbeing.
The hold trust workshops every so often and Allen is a solicitor who sets them up.

 

[Early Riser]

No he doesn't receive any such allowances, and I don't foresee him qualifying for them in the future

OK - Although the DA is widely availed of by adults with disabilities. You seem confident he may not need to avail of it to supplement other income.
Also, do we take it you are confident that when your son reaches adulthood he will be able to manage his assets independently? If not, he risks potentially being diddled or, if he has substantial assets, being made a ward of court for his own protection. (Wardship is supposed to change in future but these changes have been promised for a long time with little apparent progress). Wardship is both more expensive and more cumbersome that a Dis. Trust. However, if you envisage that your son will be able to manage his assets independently as an adult then a Trust may not be necessary.

As a poster above has suggested, it would be advisable consult a solicitor familiar with these matters.