We’ve Got You Covered
Our expertise extends to the area of special disability trusts. We recognise the importance of safeguarding the future and well-being of individuals with disabilities. Our dedicated legal team provides thoughtful, expert advice and representation in establishing and managing special disability trusts. We work closely with you to understand your unique circumstances and objectives, ensuring the trust comprehensively supports the beneficiary’s needs and secures their financial future.
Kaisha Gambell
Senior Associate
Step 1: Talk To Us
Reach out to Coutts Lawyers via our website, phone, or in person for a consultation on how we can help you secure your future.
Step 2: Consultation Appointment
Schedule and attend a meeting with a Coutts lawyer to discuss the specifics of your Estate matter and desired outcomes.
Step 3: We get to work
Rest assured, we’ll meticulously take care of all the legalities and processes involved in your Estate matter.
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Why Special Disability Trust?
A Special Disability Trust is a way to privately fund the future care needs of a child with a severe disability.
Parents and carers can transfer or leave their assets to a Special Disability Trust as a means to fund their child’s ongoing care, accommodation and medical expenses, without affecting their entitlement to a disability support pension.
The major benefits of a Special Disability Trust are:
1. A gifting concession of up to $500,000 combined is available for eligible family members of the principal beneficiary.
2. An assets test assessment exemption of up to $781,250 is available to the principal beneficiary (at July 2023 and indexed annually).
3. Income generated from the assets will not be counted towards the income test for the principal beneficiary.
4. A discretionary spending limit of $14,000 for items not directly related to care and accommodation needs e.g. holidays and entertainment (at July 2023 and indexed annually).
A Special Disability Trust can be set up during your lifetime or incorporated into the terms of your will and set up after you pass away.
A Special Disability Trust should be just one part of a broader estate plan focused on fully providing for the future of a child with a disability and you should obtain legal and financial advice before deciding whether it is right for you!
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Introducing Kaisha
Your Compassionate Lawyer
Meet Kaisha, a Senior Associate at Coutts Lawyers & Conveyancers, and the head of our esteemed Wills & Estates Law team. With her wealth of experience, Kaisha’s blend of empathy and thoroughness not only helps her foster genuine connections with her clients but also cements her reputation as a top-tier authority in Wills & Estates law.
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Special Disability Trust FAQ’s
A Special Disability Trust is a legal arrangement established to provide for the current and future care and accommodation needs of a person with a severe disability. This trust can be set up in your lifetime or a testamentary trust established through your will. The Special Disability Trust allows families to set aside funds for their disabled loved ones without affecting their eligibility for certain government benefits.
To be eligible, the beneficiary must have a severe disability as defined by the Social Security Act 1991. This typically means they require care or support for most of their daily living activities and are unable to work more than seven hours per week in open employment.
The primary financial benefit is that the assets held within the trust and income generated by the trust up to certain limits are not counted towards the beneficiary’s means test for certain social security benefits. This can help maintain or increase their eligibility for government support.
Funds from a Special Disability Trust can be used for the beneficiary’s reasonable care and accommodation needs. This can include medical expenses, therapy, modified vehicles, accommodation costs, and other expenses that directly benefit the beneficiary’s wellbeing and daily living requirements.
To establish a Special Disability Trust, you will need to create a trust deed that complies with legal requirements or set up a testamentary trust in your will. It’s advisable to seek legal advice to ensure the trust deed and/or testamentary trust meets all necessary criteria. The trust must then be registered with the Australian Taxation Office (ATO) and the Department of Social Services (DSS). Additionally, it is important to appoint a trustee who will manage the trust in the best interest of the beneficiary.
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