We understand that if you have a loved one who has a special disability, then a major concern is what will happen when you pass away. This is where your Estate Planning documents can provide that ongoing care and support to your loved one when you pass away. As of 20 September 2006, changes to the Social Security Act 1991 (Cth) (‘The Act’) have allowed for the creation of a Special Disability Trust (‘SDT’). The sole purpose of these trusts is to provide for both the current and future accommodation and care of a disabled person.
Firstly, there are eligibility requirements that must be satisfied. If you are unsure if your loved one meets the requirements, then we can go through these with you.
Some key features of a SDT include:
It is important the correct steps and procedures are followed when establishing a SDT as they are assessed under the normal income rules if the beneficiary does not satisfy the definition under the Act. Failure to meet these requirements can result in the trust being stripped and tax consequences for both the beneficiary and immediate family members who have contributed to the trust. At Carter O’Neill Legal, we are here to help. Estate planning is an important job, that can give you a great sense of comfort and peace of mind knowing that your loved ones are provided for.
Call our Estate Lawyers in Mona Vale on 02 9151 7339 or our Estate Lawyers in Gosford on 02 4308 8892.