The process of claiming the Disability Support Pension has changed in the last few years whereby on one hand it has become a more onerous process, however it also became a simpler process for some people under specific circumstances.
A special disability trust provides great financial benefits however it has restrictions on how the money can be spent. In this article we explain this matter.
Watch 8 minute video on - What are Special Disability Trusts
An explanation of how the income test and asset test works.
To be eligible to be a beneficiary of a Special Disability Trust, the disabled person must meet the definition of severe disability under section 1209M of the Social Security Act 1991.
The Special Disability Trust (SDT) is a trust structure established to provide for a person with severe disability. The trust structure includes the trustee who becomes the legal owner of the trust. Whereby they control the trust assets. The following gives some information about who can be trustee, and what are there responsibilities.
The Special Disability Trust (SDT) is a trust structure established to provide for a person with severe disability. There is no limit on the value of assets held in the trust. However, there are limits regarding the concessional effects for the asset tests and income tests for the beneficiary and there are some taxational benefits following are an explanation.
The Special Disability Trust (SDT) is a trust structure established to provide for a person with severe disability. The trust can only have one beneficiary and a beneficiary can only be a member of one SDT.
The Special Disability Trust (SDT) is a trust structure established to provide for a person with severe disability.
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 ie. the control, is held by the trustee of the super fund.
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.