I am setting up a discretionary trust of which the beneficiaries will, inter alia, be a disabled adult family member. My wife and I have to decide whether to set up a disabled trust (and make vulnerable person elections each year) or a “standard” discretionary trust with multiple beneficiaries. We have read extensively about the pros and cons of each type of trust and will take professional advice.
The drawbacks of multiple settlors and any subsequent staged settlement additions for a standard discretionary trust are clear - particularly in terms of 10 year tax charges and capital distributions.
However I can see fewer drawbacks and some advantages in having more than one settlor in a disabled person’s trust - insofar as the 10 year charge calculations are not applicable.
Would anyone like to comment on any complications associated with multiple settlors/staged settlements in a DPT?