My son is severely disabled and I have heard that establishing a trust can be a good way of providing for him into the future. What are the benefits of setting up a trust like this?
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Answer by LegalEagle™ staff, Melbourne 3000 VIC
- The federal government has established an initiative called a Special Disability Trust. This initiative is aimed at assisting family members and guardians to provide for the future of family members with a disability.
- This type of trust can be set up in your will. It would then come into being upon your death to ensure for the continued provision of your son.
- It can also be established during your lifetime.
- In order to qualify your son must have a severe disability and meet particular Centrelink qualifications. Any assets can form part of the trust but common examples include:
- income producing assets;
- money;
- shares;
- investment property that is being rented out;
- modified vehicles; and
- wheelchairs.
- Assets can be donated by anyone into the trust. In addition the funds donated into a Special Disability Trust often receive Centrelink concessions for the beneficiary.
- You may wish to appoint yourself or another family member as trustee. Alternatively if you are the main carer you can appoint a trustee company such as the State Trustee to ensure that if anything happens to you as the original trustee there will be continuity of care.