Discretionary Trusts Scotland

You should seek advice about setting up a Discretionary Trust if you want to provide for a person who:

• has a learning disability
• has an autistic spectrum disorder (ASD)
• receives care or support services
• receives means-tested benefits
• receives a self-directed support budget or direct payment
• has a substance abuse problem
• has lost capacity due to dementia or following a stroke or brain injury
• has certain mental health conditions, such as bipolar disorder, that may lead to impulsive spending
• is vulnerable to exploitation

Benefits
There are four key benefits to setting up a trust.

1. It hugely reduces the risk of someone being financially exploited. The Trustees control and monitor spending so third parties are unlikely to target your relative.
2. It protects against unwise spending. The Trustees can keep an eye on spending and reduce the risk the funds will be spent unwisely.
3. Trusts are very effective in ring fencing assets, so your relative’s benefits’ and care services are not adversely affected.
4. You appoint people you trust to have some formal involvement in your relative’s life.