Settlements by or on behalf of incapacitated settlors

Mark Baxter

For the usual reasons that apply to capacitous settlors - asset protection, tax efficiency, providing for spendthrifts, etc - it is often advantageous for the assets of those lacking mental capacity to be settled onto trust. Such persons often (suddenly) become wealthy by reason of legal awards. In addition, settling the assets of an incapacitous minor onto trust is a way to avoid undesirable succession consequences on their death under the intestacy rules (such as inheritance by an absent or even abusive parent) in circumstances where they cannot make a will nor have a statutory will made for them by the Court of Protection.