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Qualifying trusts—introduction

The definition of a qualifying trust for the purposes of the vulnerable beneficiary provisions differs depending on whether the vulnerable beneficiary is a disabled person or a relevant minor (see I5.1035).

Qualifying trust for disabled persons

A trust for the benefit of a disabled person is a qualifying trust if it meets the following two conditions throughout the 'lifetime of the disabled person' or, if sooner, until the trust terminates¹:

1. Ìý

   •ÌýÌýÌýÌý if the trust property is applied for the benefit of a beneficiary, it is applied for the benefit of the disabled person, and

2. Ìý

   •ÌýÌýÌýÌý either:

3. 1. Ìý

      –ÌýÌýÌýÌý the disabled person is entitled to all the income (if there is any) arising from that property, or

   2. Ìý

      –ÌýÌýÌýÌý (from 2013/14) if any such income is applied for the benefit of a beneficiary it is for the benefit of the disabled beneficiary

This means that where there is more than one beneficiary, the property held for the benefit of the disabled