Why Leaving Money Directly to a Disabled Child Is Fraught With Challenges

Most advisers are aware that leaving money outright to a disabled child can cause problems. The real challenge is helping families see why, and guiding them towards safer, more sustainable solutions.

The Challenges to Highlight

• Capacity:
  Where the child lacks capacity, a direct inheritance will trigger Court of Protection involvement. This brings delay, additional cost, and the sensitive question of who should act as deputy.
• Vulnerability:
  Even with capacity, sudden access to a large sum may increase exposure to financial abuse or exploitation. Framing this as a safeguarding risk often resonates strongly with parents.
• Benefits:
  Perhaps the most visible issue: means-tested benefits reduce once assets exceed £6,000 and usually stop at £16,000. For many families, this alone is enough to show why direct inheritance is unsuitable. Benefits are not an optional extra but a vital foundation for housing, care and daily living.

Reframing the Client Conversation

The adviser’s opportunity lies in how these risks are explained. Families are often unaware of the pitfalls, and may feel that “a simple will” is enough. Positioning trusts as a way to preserve benefits, safeguard funds, and respect parental wishes can transform their understanding of what secure planning looks like.

Encouraging clients to set out guidance in a Letter of Wishes also helps trustees make informed decisions beyond the technical structure itself. This humanises the plan and reassures parents that their voice will carry forward.

Building Professional Confidence

Raising these points is not about offering legal advice. It is about equipping families with the right questions and steering them towards specialist solicitors when needed. Advisers who can frame the issue clearly, with empathy as well as expertise, provide families with something they cannot easily find elsewhere: confidence.

Share With Colleagues

SENDA exists to equip and empower advisers working in this complex space. If you found this a useful framing, please forward it to peers. The more consistently we raise these issues, the better protected disabled families will be.