02 May Protective Trusts and Disability Trusts
Coming into inheritance can herald the start of a new life, and that's exactly what Brodie thought. But within a year, she had spent all of the money on clothes, cars and drugs, and now she's left with nothing. Reid Butler has that story TONIGHT on #9ACA.
Posted by A Current Affair on Monday, 16 April 2018
Protective Trusts and Disability Trusts
It is not uncommon for situations such as the recent story on A Current Affair example to occur. You can take steps to avoid this.
Where you have a child or other beneficiary of your will who is unable to exercise proper control of money such as from a drug or gambling addiction then you can set up a protective trust. This process provides protection for the beneficiary through a separate trustee holding the trust assets for the benefit of the beneficiary. The beneficiary’s specific needs are considered in the administration of the trust. A protective trust can be created while you are alive to take effect immediately. It can also be created through your Will to take effect after you pass away. Most protective trusts are set up by a Will.
Where a child or other beneficiary is disabled then a Special Disability Trust Will allows your disabled beneficiary to receive their inheritance without it affecting their income support payment, such as a disability support pension, or their health care card. On your death, your will sets up a trust that will receive the funds you are leaving to your beneficiary. The trust funds can pay for their care throughout their lifetime. Care needs to be taken with preparation so as to comply with regulations.
Our lawyers such as Charlie Belperio, Eugene Reinboth, Steven Polyichanin and Emma Campbell will be happy to explain and set up these procedures.