A Special Disability Trust (SDT) is a powerful way for families to plan for the long-term care, comfort, and financial security of a loved one with a severe disability. It gives peace of mind knowing that your family member will always be supported — both now and in the future.
Here’s a closer look at how it works 👇
👩🦽 One Principal Beneficiary
Each Special Disability Trust is set up for one principal beneficiary only — the person with the disability. This person must meet specific eligibility criteria, which ensure that the trust is being used for someone who genuinely needs ongoing care and assistance.
🏡 The Main Purpose
The key goal of the trust is to provide for the accommodation and care needs of the principal beneficiary. This can include things like:
- Paying for suitable housing or supported accommodation
- Covering medical and personal care expenses
- Funding therapies, aids, and equipment that improve quality of life
Essentially, the trust is designed to make sure the beneficiary has everything they need to live safely and comfortably.
📜 The Trust Deed
Every Special Disability Trust must follow a model trust deed — this is a legal document that sets out the rules and obligations of the trust. It’s important because it ensures the trust meets all government requirements and remains eligible for Centrelink and tax concessions.
👥 Trustees and Management
The trust must have either an independent trustee or more than one trustee to make sure decisions are made responsibly. Trustees play an important role — they manage the trust’s assets, pay for the beneficiary’s care, and ensure everything complies with the rules.
💰 Investment Restrictions
Special Disability Trusts come with strict investment guidelines to protect the assets inside the trust. This means the trustees must invest conservatively, focusing on safety and stability rather than riskier investments.
📊 Reporting and Audits
Each year, trustees must prepare annual financial statements showing how the trust’s funds have been managed. In some cases, an independent audit is also required to confirm that everything is being done correctly and transparently.
A Special Disability Trust isn’t just a financial tool — it’s a way to create lasting security for a loved one. It ensures that funds are used solely for their care and wellbeing, giving families confidence that their loved one will always be looked after, no matter what the future holds. 💙
📞 Ready to Plan for Your Loved One’s Future?
We’re here to help you set up the right financial structures and provide guidance every step of the way.
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Let’s work together to give you and your family peace of mind about the future. 💙
⚖️ Disclaimer
The information provided above is general in nature and does not take into account your personal circumstances, financial situation, or needs. It is not intended as legal, financial, or tax advice. Before making any decisions or establishing a Special Disability Trust, you should seek professional advice tailored to your individual situation.
Forman Accounting Services Pty Ltd and its representatives accept no liability for any loss or damage arising from reliance on the information provided.