If you have a child or relative you care for with a severe disability then you may be interested in setting up a special kind of trust to assist them with their care and accommodation needs.
Since September 2006, it has been possible for relatives to set up what is known as a “Special Disability Trust” (“SDT”) which can be set up either now or incorporated within your Will to commence operation on your passing.
The funds within the SDT are to be used for your child or relative’s care and accommodation needs and a maximum yearly allowance for general living and other expenses.
The uniqueness of this form of trust is that if assets are below a certain threshold then they will not impact on Centrelink and/or Veteran Affairs’ entitlements.
In certain circumstances, it will also not affect their entitlement to public housing or assistance package entitlements. In addition to these benefits, any income earned on the assets within the trust, will also not affect their Centrelink and/or Veteran Affairs’ entitlement, subject to conditions.
If you would like to discuss the possibility of setting up a Special Disability Trust, please contact our Estates Team to arrange an appointment.