Matthew Yates and Vanina Wittenburg explore how trusts protect vulnerable beneficiaries In JM FINN Prospects
Matthew and Vanina’s article was published in JM FINN Prospects, Autumn issue fifty two, on 12 September 2025, and can be seen here.
Matthew Yates, Partner and Head of our Private Client department, and Vanina Wittenburg, Partner in our Private Client department, discuss how trusts can safeguard vulnerable beneficiaries who may struggle to manage their financial affairs or face risks of exploitation.
They emphasise that while trusts are often associated with tax planning, their protective role is equally significant. By placing assets under the stewardship of trustees, families can ensure responsible management and tailored support for those who need it most.
From their experience, a disabled person’s trusts are one of the most effective ways to protect individuals who cannot manage their own affairs due to disability or mental incapacity. These trusts allow trustees to make decisions in the beneficiary’s best interests and can also offer tax advantages when set up correctly.
They also recommend protective trusts for situations where someone may be vulnerable due to addiction or poor financial habits. These trusts start by giving the beneficiary income, but if circumstances change, such as bankruptcy, trustees can take full control to safeguard assets.
Finally, discretionary trusts provide the greatest flexibility. Trustees can decide how and when to support beneficiaries, adapting to changing needs over time. While they require careful management, Matthew and Vanina believe trusts remain one of the most effective ways to protect family wealth and provide peace of mind.
Read the full article on the JM Finn’s website [external link].