A Discretionary Trust can be used to assist a vulnerable beneficiary - one lacking mental or physical capacity - to manage their inheritance.
Trustees can be given the authority to control access to funds or assets to protect the beneficiary's interests and ensure that your wishes are respected. The trustee may have powers to decide how much income or capital to pay beneficiaries and how often. They can also impose conditions on the recipient if necessary.
This type of trust can also be used to choose the age at which children will inherit from the estate, to protect beneficiaries in the process of divorce, or to keep capital aside for a future that may not be known yet, for example, a grandchild that may require more financial assistance than other beneficiaries at some point in their life.
Example - Michelle puts money into a trust to be held for 20 years for the benefit of her two 10-year-old grandchildren. The trustees can decide how to invest or use the funds and any interest earned to benefit the grandchildren - such as to pay for piano lessons or their respective weddings as they get older.