Question to the Ministry of Justice:

To ask the Secretary of State for Justice, whether he plans to review the legal status of letters of wishes in Disabled Person's Trusts, in the context of the increasing use of these structures for vulnerable beneficiaries under the Mental Capacity Act 2005 framework.

Trusts are commonly used to make long-term financial provision for family members, including children and vulnerable adults.

Trustees must exercise their powers in accordance with the binding terms of the trust instrument and are subject to broader statutory duties.

Letters of wishes can be used to complement the binding legal terms of a trust, by providing guidance about how the person creating the trust would like trustees to exercise their discretion. Letters of wishes are generally not legally binding, but trustees must give the letter of wishes necessary regard when making decisions on how to manage the assets within the trust.

As such, letters of wishes are designed to give guidance while preserving the trustee’s ability to make decisions based on circumstances that may change many years after the letter was written.

The Government currently has no plans to reform the law in this area.