Wills & Estates

Special Needs Trusts

What is a Special Needs Trust?

A Special Needs Trust, also known as a Disability Trust, is a legal arrangement that allows a person with a disability to receive financial support without impacting their eligibility for government benefits.

Types of Special Needs Trusts

There are two main types of Special Needs Trusts:

  • First-party Special Needs Trust: Established using the disabled individual’s own assets.
  • Third-party Special Needs Trust: Set up by family members or others using their own assets to benefit the disabled person.

Benefits of a Special Needs Trust

Some benefits of establishing a Special Needs Trust include:

  • Preserving eligibility for government benefits
  • Providing financial security and support for the disabled individual
  • Ensuring proper management and distribution of assets

FAQs

Can a Special Needs Trust be modified?

Yes, a Special Needs Trust can be modified under certain circumstances. It is essential to seek legal advice to ensure any modifications comply with the law and do not affect the trust’s purpose.

Who can establish a Special Needs Trust?

Family members, legal guardians, or other interested parties can establish a Special Needs Trust on behalf of a person with a disability.

Are there specific rules governing Special Needs Trusts in South Australia?

Yes, each state in Australia may have specific laws and regulations governing Special Needs Trusts. It is advisable to consult with a legal professional familiar with South Australian laws to ensure compliance.

For client-focused advice and assistance with Special Needs Trusts in Adelaide, contact Wright Street Lawyers today.

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