By Steve Conley, Academy of Life Planning
Planning for the future of a loved one with special needs is not just about securing finances—it’s about creating dignity, independence, and peace of mind for everyone involved. In his insightful presentation, “Advising Families of Those with Special Needs”, Dave Robinson shared powerful guidance from decades of experience—as a chartered financial planner and, most importantly, as Mike’s dad.
WATCH THE FULL VIDEO HERE >> Advising Families of those with Special Needs: A Holistic Approach to Financial Planning.
DOWNLOAD THE PRESENTATION SLIDES HERE: Advising Families of those with Special Needs.
This blog unpacks key takeaways for professionals and families alike, offering a roadmap to support, protect, and empower.
1. Understand the Real Issues
When families face a diagnosis of special needs, trauma is often assumed—but Dave reminds us that each journey is unique. What remains universal, however, is the need for:
- A sustainable, lifelong financial safety net
- Protection of entitlement to state support
- Structures for managing money responsibly
- Emotional bandwidth for everything else: education, friendships, milestones, and more
These needs persist long after the parents are gone—often for decades.
2. Navigate State Support Strategically
State benefits are complex and tiered:
- Disability benefits (non-means-tested) may form the income base.
- Means-tested benefits like Housing Benefit and Council Tax Support are reduced or eliminated if assets exceed £6,000 or £16,000 respectively.
- Legal Aid and social care funding also vanish above low thresholds.
The stark reality? A modest savings pot can disqualify someone from crucial state support.
Tip: Don’t build capital in the name of the person with special needs. Use trust structures instead.
3. Why You Must Make a Will
Dying intestate (without a will) often hands assets directly to the child—who may lack capacity or understanding to manage them and could lose benefits as a result. Even a well-meaning gift could trigger what’s known as intentional deprivation of capital, resulting in the loss of state care funding.
Action Step: Encourage all family members—especially grandparents—to align their wills with the needs of the individual.
4. Use Trusts to Protect and Empower
Trusts are essential tools—not just for control, but for protection and dignity. Two types stand out:
- Discretionary Trusts: Highly flexible, but taxed at higher rates and complex if multiple beneficiaries are involved.
- s89 Trusts (under Inheritance Act 1984): Purpose-built for disabled beneficiaries, they offer personal tax rates, defer IHT, and simplify administration.
Dave’s own journey involved moving from a Discretionary Trust to a s89 Trust—demonstrating how planning is not static, but must evolve with family needs.
5. Building and Investing the Fund
Sources for the trust fund might include:
- Life assurance policies
- Pension death benefits
- Inheritances (with careful structuring)
- Savings/investments (held by trustees)
Investment Strategy: Tax efficiency is key. Offshore bonds, for example, can be advantageous in trusts but require tailored advice.
6. Ethical Practice & Respectful Engagement
Dave finishes with an appeal to human decency and professionalism. The Mental Capacity Act 2005 urges us to presume capacity, empower decision-making, and act in the person’s best interests—always with the least restriction.
Families are not just seeking products. They need:
- Advice (which they’ll happily pay for)
- Sensitivity (they’re often overwhelmed)
- Trustworthy partnerships with professionals who understand both the emotional and technical dimensions
Final Word
At the Academy of Life Planning, we echo Dave’s values. Planning for loved ones with special needs is about far more than inheritance tax or investment returns. It’s about respect, autonomy, and ensuring that every individual—regardless of ability—can live a life of fulfilment and dignity.
If you’re a planner wanting to specialise in this area, or a parent seeking clarity and peace of mind, reach out. Together, we can change lives—not just with money, but with meaning.
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