Booklet: Special Disability Trusts (SDT) (Chapter 1 – What is an SDT?)

Booklet: Special Disability Trusts

Below is Chapter 1 of our ‘Special Disability Trusts’ booklet. To read the other chapters of our booklet, click the links below:

Please note that the information in this booklet is current as at the 2024/2025 financial year.

A trust is a legal relationship between a trustee and a beneficiary. The nature of the legal obligation requires a trustee to look after trust property and funds for the benefit of another.

A Special Disability Trust (SDT) is a specialised type of trust that allows parents and immediate family members to plan for current and future needs of a person with severe disability. The trust can pay for reasonable care, accommodation and other discretionary needs of the beneficiary during their lifetime.

An SDT will often give families peace of mind that on-going financial support will be available for loved ones who require additional assistance.

If an immediate family member transfers assets into the SDT, generous concessions are available to benefit both the contributor and beneficiary. Tax and social security concessions are intended to encourage family members to make future arrangements for a beneficiary with a severe disability.

Whether or not an SDT is suitable for your purposes is a complex matter that involves consideration of your particular circumstances and those of the intended beneficiary. This booklet is intended
to make things simpler by explaining the rules, requirements and purpose for establishing an SDT.

To download a PDF of our booklet, enter your email below.

 

The information contained in this post is current at the date of editing – 11 September 2024.

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