If you have a loved one with a disability, planning for their long-term care and financial security is essential. A Special Disability Trust (SDT) is a valuable estate planning tool that can provide financial support for a person with a disability, ensuring they receive care while also protecting their eligibility for government benefits.

At Alpine Legal, we offer expert legal guidance on setting up and managing Special Disability Trusts. Our team can help you navigate the legal complexities, ensuring the trust is structured to provide maximum benefit for your loved one while complying with relevant laws and regulations.

What is a Special Disability Trust?

A Special Disability Trust is a type of trust created under Australian law specifically to provide financial support for a person with a severe disability. The trust can be used to help cover the costs of accommodation, care, and other needs for the person with a disability.

SDTs offer several key benefits, including:

• Protection of government benefits: Assets held in an SDT are generally exempt from means testing for government support such as the Disability Support Pension (DSP) or other income-based benefits. This helps to maintain eligibility for important government assistance.

• Financial support for disability-related expenses: The trust can be used to pay for accommodation, care, education, and other expenses related to the well-being of the person with a disability.

• Tax benefits: Contributions to an SDT and income generated by the trust may be subject to special tax treatment, potentially offering tax savings for the family or trust.

• Long-term security: An SDT ensures that funds are managed responsibly and directed to the care and needs of the person with a disability, providing long-term support after the benefactor's passing.

Why Set Up a Special Disability Trust?

Setting up an SDT is an important decision, and it offers significant advantages in terms of both financial security and maintaining government benefits for a person with a disability. The main benefits of an SDT include:

• Preserving government entitlements: An SDT ensures that a person with a disability remains eligible for government benefits, even if substantial assets are held in the trust.

• Flexibility and control: You can structure the trust to provide ongoing care and support according to the specific needs of your loved one, giving you peace of mind that they will be cared for long-term.

• Protection from creditors and other claims: The trust provides protection from any potential claims or financial difficulties faced by the individual with a disability, including protection in the event of a relationship breakdown or bankruptcy.

How We Can Help

At Alpine Legal, we guide families through the process of establishing a Special Disability Trust by providing services such as:

• Advice on eligibility and requirements for creating a Special Disability Trust

• Drafting and setting up the trust in line with Australian law, ensuring it meets all legal requirements

• Selecting suitable trustees who will manage the trust and ensure its assets are used for the intended purpose

• Advising on funding the trust, including contributions from family members and the ongoing management of trust assets

• Ensuring compliance with both taxation laws and disability-related support regulations

• Helping manage and administer the trust once it’s in place, ensuring the long-term financial security of your loved one

Helping Clients Across Camberwell, Balwyn, Doncaster, Kew, and More

• Alpine Legal is based in Camberwell, and we proudly assist clients in surrounding suburbs, including Balwyn, Doncaster, Kew, Mont Albert, Templestowe, and Surrey Hills. Whether you need legal support for family law, property settlements, wills and estates, or more, our compassionate team is here to help guide you through every step.