Disability Trusts – How do they work and why set one up?
A Special Disability Trust is established by parents, immediate family members and carers to plan for the future care and accommodation needs of a person with a severe disability. The benefits of a Special Disability Trust are:
•that a gifting concession of up to $500,000 combined is available for eligible family members of the principal beneficiary and
•that an assets test assessment exemption of up to $596,500 (indexed each year) is available to the principal beneficiary.
Special Disability Trusts (or SDTs) are specific types of trusts which have been established to comply with certain provisions in the Social Security Act 1991 and the Veterans’ Entitlement ACT 1986 (since 20 September 2006). Such trusts attract social security means test concessions for the sole beneficiary (who must be assessed as “severely disabled” under the legislation) and any eligible contributors. An SDT can be a testamentary trust established through a Will.
If you would like more information on trust structures and the most appropriate type of trust for your situation, submit an online enquiry or call us on 1300 QUINNS (1300 784 667) to arrange an appointment.