I’m advising a client on making a Will. She is divorced and her estate is valued at approx £650k (including a property valued at £350k). She has 2 children; one of whom has a number of health conditions and who does not have capacity to look after his finances.
She would like to divide her estate, possibly in half, one half going direct to one child and the other half in trust. We are deliberating between a disabled trust and a discretionary trust. Client is favouring a discretionary trust principally because she is concerned as to what might happen if his benefits cease to be qualifying benefits for the disabled trust.
I am aware that RNRB would still be available if half the house passed into a disabled trust but not if it passed into a discretionary trust (I appreciate RNRB could apply if the property is appointed out of the trust to a direct descendant but that it not likely)
My question is how can I protect her RNRB? Should she leave her house to one son and the rest of her estate to a discretionary trust?