Special Disability Trusts (SDTs)

A Special Disability Trust (SDT) is a legal structure to help families provide for the long-term care and accommodation of a loved one with a severe disability. SDTs allow families to set aside money and assets to pay for care, without affecting the disabled person’s eligibility for the Disability Support Pension or other Centrelink benefits. This makes it easier for families to support a family member with a disability both now and in the future, without worrying about their financial security or government entitlements.

How Special Disability Trusts Work

Special Disability Trusts offer several benefits designed to help families plan for future care needs. By placing funds or assets into a trust, families can make sure their loved one with a disability has access to the necessary resources for their care and accommodation. Importantly, under the current laws, a significant portion of the assets held within an SDT are exempt from Centrelink’s means testing. This exemption allows the beneficiary to continue receiving social security payments, while still benefiting from the trust.

Another advantage of SDTs is the tax benefits they offer. Assets and income in the trust may receive special tax treatment, making it more cost-effective for families to contribute towards their loved one’s care. This tax relief, combined with the Centrelink exemptions, helps ensure that the person with a disability is provided for in a financially sustainable way.

SDTs are governed by strict rules regarding how funds can be used, mainly focusing on expenses related to care, accommodation, and medical needs. Families can feel reassured that their financial contribution will be used solely for the benefit of their loved one’s well-being and quality of life.

There are other benefits for the donors as well, such as potential Capital Gains Tax concessions which need to be thoroughly evaluated.

The Importance of Special Disability Trusts

Many Australian families face the challenge of planning for the future care of a family member with a severe disability. Special Disability Trusts provide a structured way to do this. They allow parents, grandparents, or other immediate family members to put away money or assets in a secure, government-approved framework that will continue to benefit their loved one, even after the caregivers are no longer able to provide direct support.

SDTs are an effective way to ensure peace of mind. They not only protect the family member’s eligibility for critical social security payments but also help cover essential costs of care that can often be overwhelming.

Health & Finance Integrated: Your Trusted Adviser for Special Disability Trusts

At Health & Finance Integrated, we specialise in helping families navigate the complex landscape of Special Disability Trusts. Our team of expert financial advisers works with you to develop a customised solution that fits your family’s unique situation, while making sure your loved one with a disability receives the best possible care.

We understand that managing both the financial and emotional aspects of caring for a family member with a disability can be challenging. That’s why we’re dedicated to guiding you through every step of setting up a Special Disability Trust. From ensuring that the trust meets legal requirements to optimising its tax and Centrelink benefits, we take the stress out of the process.

Our approach is holistic and family-focused. We take the time to understand your loved one’s specific needs and your long-term goals. We help structure the trust to ensure the right balance between protecting government entitlements and providing the financial resources needed for a high standard of care and accommodation.

Our experience in both the financial and disability sectors makes us leaders in this field. Whether you’re setting up an SDT for the first time or looking for advice on how to manage an existing trust, Health & Finance Integrated has the expertise to support you at every stage.

Why Choose Health & Finance Integrated for Special Disability Trusts?

  • Expertise: With years of experience in disability support and financial planning, we understand the intricacies of Special Disability Trusts and how to maximise their benefits.
  • Tailored Solutions: We create personalised strategies to fit the specific needs of your family, ensuring the long-term well-being of your loved one with a disability.
  • Comprehensive Support: From the initial consultation to the ongoing management of the trust, our advisers offer full support to make the process smooth and stress-free.
  • Client-Centred Approach: We put the well-being of your family first, offering compassionate, practical advice that considers both the financial and emotional aspects of caring for a person with a disability.

Planning for the future care of a loved one with a disability can be overwhelming, but with the right guidance, it doesn’t have to be. Let Health & Finance Integrated help you secure a brighter, more secure future through a Special Disability Trust tailored to your family’s needs.