Who can be a beneficiary of a Special Disability Trust?

A Special Disability Trust can have only one beneficiary who must be assessed as severely disabled under the Commonwealth rules before the trust is set up. The first step is to contact the Department of Social Services to ascertain whether a person is an eligible beneficiary. See the guide to the beneficiary assessment process.

What can the Special Disability Trust fund be used for?

The trust fund must be used for the care and accommodation needs of the beneficiary. There is a limited allowance each financial year for discretionary spending unrelated to those needs, however that allowance is relatively low. Spending beyond that allowance can cost the trust its concessional treatment.

What are the means test concessions?

There are two means test concessions. First, trust assets up to the asset value limit are exempt from the beneficiary’s social security assets test. Second, a family member who contributes to the trust may also be exempt from the usual social security gifting rules. The asset value limit is indexed on 1 July each year, so check the current figure with Services Australia before relying on it.

Where can I find more information about Special Disability Trusts?

The Department of Social Services publishes the rules and the beneficiary assessment process for a Special Disability Trust (SDT). Services Australia administers the means test side of an SDT. More information can be found on the Services Australia Special Disability Trusts page and on our Special Disability Trusts page.

Special Disability Trusts Perth | Perth Wills Centre

Are you worried about the effect a lump-sum inheritance may have on your beneficiary’s entitlement to receive a pension?

If one of your beneficiaries has a severe disability, a Special Disability Trust may enable you to access social security means test concessions for their benefit.

A Special Disability Trust is designed to assist those who have the financial means to do so to make private financial provision for the care and accommodation needs of a family member with severe disability and to receive means test concessions.

Put simply, assets within a Special Disability Trust (up to a certain limit) are exempt for the purposes of determining the beneficiary’s entitlement to receive a pension.

For advice about a Special Disability Trust for your family member, start by booking an estate planning conference.

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