A guide to estate planning for vulnerable family members (part 1)

Estate planning for vulnerable family members could present some unique challenges. Our 2-part guide will help you ensure that your loved ones are cared for.
Our recent articles about creating a bulletproof will and five important estate planning tips for 2025 give you useful insights to help you get your affairs in order. The tips in these articles are applicable to most situations and following the steps we discussed could mean that your wishes are fulfilled and may reduce stress for your family.
Yet, when managing your estate, it’s crucial to recognise that every family is unique and you need a plan that works for your specific situation. This is especially true if you have a child, sibling, or partner/spouse with a learning disability or life-altering long-term illness or injury.
Simply leaving an inheritance to beneficiaries in vulnerable circumstances may not be suitable as it could be difficult for them to manage the wealth effectively. That’s why it’s important to consider your estate plan carefully, so you can build long-term financial stability for them.
Let’s look at some of the challenges and potential solutions when creating an estate plan for vulnerable family members.
Why a traditional inheritance may not be enough for vulnerable beneficiaries
Typically, when writing a will, you’ll decide how you want to divide your estate between your beneficiaries. After you pass away and the probate process is complete, the executor of your will then distributes the estate, meaning your beneficiaries receive a large lump sum.
However, this traditional arrangement for passing on wealth may not be right for some vulnerable beneficiaries for several reasons.
They may not be able to manage the inheritance effectively
A beneficiary with a learning disability, acquired brain injury, or similar impairment might have trouble managing their finances effectively, and so could spend a large inheritance ineffectively and even run out of money.
In some cases, they might not fully understand how much they have inherited and what this might mean for their situation. Or, certain financial admin tasks such as setting up a bank account or making investments may not be accessible to them.
Also, if a vulnerable person has significant difficulties managing wealth, it may be necessary to apply to the Court of Protection for a deputy to take charge of the inheritance. This could take up to 12 months and may cost between £2,000 and £3,000.
More importantly, appointing a deputy means that a stranger makes decisions about how your loved one spends their wealth, and these choices might not align with your own wishes.
They could be at risk of financial abuse
A person with reduced financial capacity could be at an increased risk of financial abuse. Determining a person’s ability to manage their own money and understand their decisions usually involves a financial capacity assessment, which is conducted by a professional from the NHS or private healthcare organisation.
Bad actors might offer to help a vulnerable person with their financial affairs so they can gain access to their wealth. Additionally, if a person has trouble understanding their finances, they may be less likely to notice when somebody is taking advantage of them.
Unfortunately, if you leave a large inheritance to a loved one with a learning disability or similar impairment, this could make them more of a target for financial abuse.
A large lump sum might affect their entitlement to certain benefits
Vulnerable individuals may be entitled to certain benefits to help with their care and general living costs.
If you leave them a large inheritance, they may lose certain means-tested benefits. This could mean they are forced to spend the inheritance on their care. It’s important to consider this when deciding how much to leave for your vulnerable beneficiaries.
These challenges could mean that the inheritance doesn’t provide the level of financial stability for your loved ones that you hoped it would.
Fortunately, forward planning could help you overcome all these hurdles.
The importance of leaving a clear, legally supervised will
Your will is the foundation of your estate plan as it allows you to set your wishes out clearly. If you have vulnerable beneficiaries, there are some important considerations you may need to make when writing your will.
Have the will overseen by a legal professional
Inviting a legal professional to oversee the creation of the will could benefit you in several ways.
First, they can advise you about the wording and which items to include in the will, giving specific guidance about making provisions for a vulnerable family member. This means you’re less likely to miss anything important.
Additionally, having a legal professional witness the signing of the will could give it more legitimacy in the future, and reduce the chances of anybody challenging the will or acting against your wishes.
This may help to protect your vulnerable family members from those who might take advantage of them by contesting their inheritance or attempting to gain control of their wealth.
Leave very clear instructions about the safeguarding of wealth
You may feel that if you leave a traditional inheritance for a vulnerable child, other family members such as siblings can manage their financial affairs.
While this may be the case, those family members might not necessarily make suitable choices. There could also be disputes about the best ways to manage the inheritance. They might not legally have access to this person’s finances either, making it harder for them to help.
All this means that the family might not act, or be able to act, in the best interests of the vulnerable individual.
That’s why it’s important to leave very clear instructions about the safeguarding of the wealth. For instance, you might outline who should take charge of the inheritance and how they should use the funds.
Specific legal arrangements including trusts could be a useful tool here. We will cover this in more detail in part two of this series.
Appoint a guardian if your beneficiary is under the age of 18
If you have a child under the age of 18 with learning difficulties or another kind of vulnerability, you may need to appoint a guardian for them when writing your will.
This person will take over care responsibilities after you’re gone and help your vulnerable family member manage their inheritance.
It’s crucial that you choose somebody reliable and trustworthy, who can competently manage their new responsibilities and make sensible decisions.
If you fail to appoint somebody in your will, the courts take responsibility for your child and ultimately choose a guardian. This may not be the person you would’ve chosen to care for your child and take care of their inheritance.
Learn more about protecting your loved ones in part 2 of the series
You’ve learned about the unique estate planning challenges you may experience if you have vulnerable family members, and why writing a clear will is so important.
In part 2 of the series, we will explore specific ways to protect your vulnerable beneficiaries including placing the inheritance in a trust and creating a Lasting Power of Attorney (LPA).
Get in touch
If you have questions about estate planning, please contact your Kellands financial planner today.
Email us at hale@kelland.co.uk, or call 0161 929 8838.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate estate planning, trusts, Lasting Powers of Attorney, or will writing.