Are you considering establishing a special disability trust for a loved one with a severe disability? It’s a significant step, but one that can provide crucial support and financial security. However, before diving in, it’s important to understand the key requirements and steps involved in setting up a special disability trust.
This guide will help you navigate the process, covering:
Determining Eligibility: Ensure your loved one meets the definition of severe disability through Centrelink or DVA assessment.
- Establishment Methods: Choose between a trust deed or a testamentary trust (created through a will).
- Key Elements of the Model Trust Deed: Adhere to compulsory clauses to maintain special disability trust classification.
- Commencement Date and Rate Determination: Understand how the trust begins and how payment rates are assessed.
- Relationship Dynamics: Learn about limitations on beneficiaries and trusts.
- Handling Compensation Payments: Ensure funds are used exclusively for care and accommodation needs.
- Investment Rules and Strategy: Develop a strategy aligned with the trust’s purpose, considering risk, diversification, and more.
- Real Estate Investment: Explore options for owning property for accommodation or rental income, adhering to relevant regulations.
Establishing a special disability trust requires careful planning and adherence to legal requirements. By following this guide and seeking expert advice from a qualified accountant specializing in Special Disability Trusts, you can create a valuable financial framework that offers vital support for your loved one.
We at Forman Accounting Services are dedicated to helping families establish and manage Special Disability Trusts. Contact us today for a confidential consultation. Click Here
For personalised financial advice and assistance in navigating the establishment of a special disability trust, we invite you to contact our sister company, Forman Financial Services. Their expert team is dedicated to providing tailored solutions to meet your specific needs. Click Here