A special disability trust can be established to specifically provide for the care and accommodation of a family member with a severe disability. If compliant with the statutory requirements it will allow the disabled beneficiary of the trust to retain their full pension entitlement. There are also generous concessions for contributions to a compliant special disability trust.

Along with the recent addition of special disability trusts to By Lawyers Companies, Trusts and Partnerships guide, our Wills guide now also includes detailed commentary and precedents covering special disability trusts.

A special disability trust can either be established in the will, or a direction can be given in the will for the executor to establish a special disability trust from the estate as required. Which option is chosen will depend on the client’s wishes and family circumstances. The Library of discretionary trust and special disability trust clauses in the By Lawyers Wills matter plan contains appropriate clauses for insertion in the will.

It also includes the By Lawyers Special Disability Trust Deed, which fully complies with the legislative requirements.

The new commentary covers everything a practitioner needs to know about establishing a special disability trust for their clients, including:

• beneficiary eligibility requirements;
• contribution and concession guidelines;
• the permitted use of special disability trust funds; and
• three ways the testator can provide for a disabled beneficiary via a special disability trust:
  • establish the trust inter vivos by deed and provide in the will for a bequest to the trust;
  • establish the special disability trust in the will; or
  • direct the executor of the will to establish the special disability trust, either with or without separate testamentary discretionary trusts.