Vulnerable or Disabled Family Members

Vulnerability may be due to a disability, a mental illness, an addiction or because they are simply naive or bad with money? RetireLaw's modern estate planning Wills can employ the right provisions to ensure any vulnerability is managed sensibly and sustainably. 

Beneficiaries With No Obvious Special Needs


All modern Estate Planning Wills from RetireLaw have detailed crisis provisions in place should any beneficiaries be unable to cope with life due to an addiction, naivety, age, mental health issues, and all create testamentary trusts that provide tax advantages to all beneficiaries as well as the protection of inheritances from divorce, bankruptcy and family disputes.


Beneficiaries With Diagnosed Special Needs


There are two similar but more specialised testamentary trusts which are designed to protect beneficiaries with diagnosed special needs.


1. Special Disability Trust


Since 20 September 2006, families have been able to establish a Special Disability Trust during the parents’ lifetime or by Will, which attracts social security means test concessions for the beneficiary and eligible contributors.


The purpose of the trust is to assist immediate family members and carers who have the financial means to do so, to make private financial provision for the current and future care and accommodation needs of a family member with a severe disability and to receive means test concessions.


A Special Disability Trust can hold assets worth up to $626, 000 (indexed each July 1) without these assets impacting on the trust beneficiary’s income support payment (such as Disability Support Pension).


It is necessary that before a Special Disability Trust can be established, the prospective trust beneficiary be assessed as severely disabled under the legislation for this type of trust.


RetireLaw solicitors Terry Purcell and Dawn Wong are highly adept at drafting Special Disability Trusts for the long term peace of mind of immediate family members and carers who wish to ensure that a family member with a severe disability is adequately provided for and taken care of once they have passed away.


2. All Needs Protective Trust


A beneficiary with a disability, or who is considered to be otherwise vulnerable, would benefit from the establishment of an All Needs Protective Trust, another type of testamentary trust. The establishment of an All Needs Protective Trust for a disabled or vulnerable child would give the executors of parents’ Wills (potentially siblings) greater flexibility to best manage the beneficiary’s inheritance and their welfare.


Provision can be also be included in the parents’ Wills to enable decisions to be made following their passing by their executors as to the allocation of capital funds between his Special Disability Trust and his All Needs Protective Trust to best provide for all aspects their welfare and needs.


i.e. for any additional support services, transport solutions, special personal wants or interests - not just his care and housing which is all a Special Disability Trust receiving tax concessions can provide for.


Contact RetireLaw Today


There is no cost to find out exactly what tailored legal strategy your estate plan needs to meet your wishes, circumstances and objectives. 

Phone     02 8908 9700



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