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Special Disability Trusts

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So what is a Special Disability Trust?

Technical Response

A Special Disability Trust is a trust established for the future care and accommodation needs of a person with a severe disability; known as the Principal Beneficiary.

In Reality…

A Special Disability Trust allows the family to:

  • Provide for the future care and accommodation needs of the individual.
  • A Special Disability Trust delivers protection of assets and when used in conjunction with an all needs trust, provides additional lifestyle choices for the individual.
  • They also allow the benefit of ongoing eligibility for Centrelink payments.

"Above all else a Special Disability Trust provides peace of mind for the family that the future needs of the individual are secure".

So what is the first step? - Knowledge
Q. How do you get started setting up a Special Disability Trust?

You need to confirm with Centrelink that the individual is eligible for a Special Disability Trust. 

Once you have the letter of eligibility, you can partner with your professional services team to get things underway. 

Your Lawyer, Financial Planer and Accountant  will support you through the setup and the ongoing management of the Special Disability Trust.  

Q. So when can a Special Disability Trust, be set up?

A Special Disability Trust can be set up at any time by a donor, usually the parents, grandparents or immediate family members of
the individual, Or

They can be setup as a part of a will, Or

The Individual (“Principal Beneficiary”) or their guardian can setup a Special Disability Trust as a result of a direct inheritance or from a payment of a superannuation death benefit.

Q. What do I need to look at to get the Special Disability Trust setup correctly?

There are a lot of areas that need to be addressed such as: who will the trustees be, financial planning, budgeting, the updating of wills and most importantly the needs of the individual. Getting the right advice and support is the key to setting up a Special Disability Trust smoothly.

Q. Are there any ongoing requirements for a Special Disability Trust?

As with all dealings with Centrelink and the Australian Taxation Office (ATO) there are a number of ongoing requirements that need to be monitored and reported on for a Special Disability Trust. That is why it is crucial to get this right as there can be a number of undesirable outcomes if the Special Disability Trusts becomes non-compliant.

It would be our pleasure to assist you further... So what stage are you at?

  • Do you need some additional information about Special Disability Trusts to get started on the right path.
  • Are you planning for the future and looking into a Special Disability Trust as part of your estate planning
  • Are you looking to setup a Special Disability Trust and focused on getting it right from the start.
  • Do you need specialised accounting services for your Special Disability Trust to ensure the tax and Centrelink compliance requirements are met.

How can we help you?

T&E Accounting specialises in the delivery of Special Disability Trusts by providing education to get you started on the right path, as well as supporting you through the setup process and then delivering the ongoing tax and Centrelink compliance requirements.

It would be our pleasure to assist you further...