For inheritance tax (IHT) purposes, a trust for a disabled person that meets certain requirements about how the income and capital of the trust may be applied during that person's lifetime (section 89B(1), Inheritance Tax Act 1984). For information about the requirements, see Practice notes:

A disabled person's interest is a qualifying interest in possession for IHT purposes, even if the disabled person has no actual interest in possession (sections 59(1), 89(2) and 89A(4), IHTA 1984). A disabled person's interest may (but will not always) qualify as a trust for a vulnerable person for income tax and capital gains tax purposes (sections 23-45, Finance Act 2005).

For will clauses creating disabled persons' interests, see Standard clauses: