Special Disability Trust

If you are looking to make the Special Disability Trust Yearly Compliance Requirements a simple task, contact us at sdt@formanaccountingservices.com.au

What is a Special Disability Trust?

Special Disability Trusts provide a financial structure to support a family member with a severe disability. They also give you peace of mind – knowing there is a plan to meet ongoing care & accommodation requirements for your loved one.

What are the benefits?
  • may enable qualification & maximisation of Centrelink benefits for contributors & beneficiaries
  • taxation benefits and capital gains tax exemptions
  • safeguard & control of assets
  • supports ongoing general health, well-being and social interaction of disabled dependents
Is a Special Disability Trust the right approach for my family?

Complete this simple checklist:

Does your family member have a severe disability?

Do you already qualify for partial Carer Payment and want to maximise your benefits?

Do you have investment assets which have a potential capital gains tax liability if you liquidate them to help the disabled person?

If you answered yes to any of the above questions a Special Disability Trust may be of benefit.

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Special Offer

We would like to offer you a complimentary 20-minute meeting, where you can ask an expert your questions regarding Special Disability Trusts.

Meetings can be held on either Zoom or over the telephone.


Learn more about Special Disability Trust

Ageing Parents and Special Disability Trust-video

Estate and Special Disability Trust-video

Five Steps to Establish a Special Disability Trust-video

Case Studies

Jan's Story

Jan already received a partial Carer Payment that helped to care for her disabled son George. Unfortunately she only qualified for a partial Carer Payment because her investment assets were included in the Centrelink assets test as they were in her name. The reality was that Jan relied on some of that investment income to look after George. By creating a Special Disability Trust Jan was able to restructure her assets to place them into the trust to be used for her son’s ongoing care. This helped Jan to qualify for the full Carer Payment and make it easier to look after George with an extra $6500 per year.

Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.

Maryanne and Edward's Story

Maryanne and Edward are a married couple aged 66 living in their own home. They have two children Rachel aged 38 and Tony aged 40. Tony is severely disabled and is receiving disability pension as well as being financially supported by Maryanne and Edward for his accommodation and health expenses. Rachel is married and has her own young family.

Maryanne and Edward have a self-managed superannuation fund with an investment portfolio of $600,000. They also have share portfolios worth $350,000 which they own in their personal name. The majority of the share portfolio includes shares that were purchased many years ago and the cost base of those shares are very low. In other words, if Maryanne and Edward are to sell those shares (on current high valuation) they will face a substantial capital gains tax.

Both Maryanne and Edward are retired. They are using the income pension from their SMSF as well as the partial aged pension that they are receiving to support themselves and they are using the income from their share portfolio to support Tony. On the 1st January 2017 the government is introducing a new threshold for asset test limits. This will mean that Maryanne and Edward will lose their current partial pension which will put them into financial difficulties considering that they are supporting Tony. If they establish a Special Disabilities Trust (SDT) and donate the share portfolio into it and then restructure the investment within the SDT they will be able to achieve the following:

  1. reduce their asset tests without being caught out by the gifting rule and therefore continue to receive their pension after January 2017
  2. be exempt from Capital Gains Tax on the shares
  3. the asset in the SDT will not affect Tony’s asset and income tests and therefore will not affect Tony’s disability pension

This will allow Maryanne and Edward to keep looking after Tony and at the same time keep looking after themselves.

For more information on this subject feel free to get in touch with us click here.

To read more about our specialised service offers for Special Disability Trust please click here.

Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.

How can Forman Accounting Services help?

We provide three services:

  • Confidential consultation regarding the benefits of Special Disability Trust, including the analysis of how it can benefit your circumstances.
  • Establishment of Special Disability Trust
  • Ongoing administration, taxation & reporting

Contact us to arrange an appointment today. We provide clients with a face to face meeting at our office in Bondi Junction or via Zoom for your convenience.

To view client recommendations please check Solomon Forman’s LinkedIn profile.

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Trust is a legal arrangement that allows for the separation of legal ownership from the beneficial ownership of an asset. An example of a common trust structure in Australia is a Superannuation Fund where the member is the beneficial owner however the legal ownership...

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