Planning for the financial security of vulnerable beneficiaries is a crucial aspect of Estate Planning. When it comes to individuals with disabilities, special considerations need to be made to ensure their ongoing care and support. Special Disability Trusts offer an effective solution for safeguarding the financial well-being of disabled beneficiaries. Incorporating a Special Disability Trust into your Wills can provide you with peace of mind for the ongoing support of your loved ones with disabilities.
Special Disability Trusts are legal arrangements designed to protect and manage assets for the benefit of a person with a severe disability as defined by the Social Security Act. They offer a way to maintain eligibility for government benefits while setting aside funds and assets specifically for the disabled individual. The funds in the trust are managed by your chosen Trustee or Trustees, who may be the siblings of the beneficiary or other trusted relatives.
Utiling a Special Disability Trust in your Will can offer several benefits, including:
1. Protecting Government Benefits: By placing assets in a Special Disability Trust, families can provide a finacnial benefit to while allowing the individual to continue to receive essential government benefits, such as the Disability Support Pension, Carer Allowance, and health care cards.
2. Preserving Assets: Special Disability Trusts help safeguard the disabled beneficiary’s assets from being depleted by ensuring they are used solely for their benefit and support.
3. Long-Term Financial Security: Special Disability Trusts establish a reliable financial framework, providing ongoing care and support for disabled beneficiaries, even after the passing of their caregivers.
Incorporating a Special Disability Trust into your Will is an effective strategy to secure the financial future of vulnerable beneficiaries. By meeting the eligibility criteria and correctly establishing the trust through your Estate Plan, you can protect assets, maintain government benefits, and provide lasting support. If you have a loved one with a disability and you would like to consider whether a Special Disability Trust can be incorporated into your Estate Plan, please contact us on 4934 6899 to book your free consultation with one of our solicitors. More information about Special Disability Trusts can also be found on the Government Social Security website.