4.14.1 Overview of Special Disability Trusts

Introduction

This section contains general information on the measure that has effect from 20 September 2006.

In this section

This section contains information on the characteristics of special disability trusts.

Characteristics of special disability trusts

Before the means test concessions can be granted, a trust must legally exist. In general, for a trust to then be considered a 'special disability trust', it must meet the following requirements:

• the principal beneficiary must meet the eligibility criteria,
• be 'protective' in nature,
• have only one principal beneficiary (i.e. the person for whom the trust is established),
• provide solely for the care and accommodation needs of the principal beneficiary,
• have a trust deed, or be established via a will, that contains all of the compulsory clauses set out in the model trust deed (for trusts established before 20 September 2006, the trustee can be issued with a waiver notice for certain requirements),
• have more than one trustee OR a professional trustee,
• comply with the legislative requirements,
• provide annual financial statements to Centrelink or DVA, and
• conduct independent audits when required.

Act reference: SSAct section 1209M Beneficiary requirements, section 1209Q Trustee requirements, section 1209R Trust property requirements, section 1209S Reporting requirements, section 1209T Audit requirements, section 1209U Waiver of contravention of this Division

Social Security (Special Disability Trust) (FaHCSIA) Guidelines 2008

Social Security (Special Disability Trust) (DEEWR) Guidelines 2008

Policy reference: SS Guide 4.14.3.60 Waivers for Special Disability Trusts

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Last reviewed: 4 August 2008