Please be sure that you utilise a Professional who is conversant with Trusts and Estate Planning together with a Financial Planner to arrange your affairs.

Up until recently, assets and income left to a beneficiary who is in receipt of valuable benefits from the Department of Social Security, could cause that person to lose all or part of these benefits. Simply receiving a gift or inheriting from a parent or a relative is the most likey scenario.

Recent legislation will be of tremendous value and bring comfort to those who wished to gift or leave assets to a disabled relative but, were faced with the dilemma that the benefits would be lost or effected and the living arrangements of that individual compromised.

Now a Special Trust may be set up in terms of a will which should apply only the disabled beneficiary. The trust assets and distributions must not be mixed with other beneficiaries or the benefit of the program will be lost. A codicil will suffice.

Should the beneficiary of the Trust die after the trust receives capital, that capital may be distributed according to the arrangements made when setting up the trust. So the originial intentions of the donor may be preserved.

Conditions relating to the investments and distributions from the Trust investments are set out in the legislation.

We are able to assist our clients to instruct their solicitors.

The legislation also allows for an inter vivos trust (the trust may be set up at any time that the assets are available).

See the Special Disability Trust Guidelines 2006.

Please remember that this is general information not advice. In terms of The Financial Services Regime, we must provide you with a Statement of Advice based upon the current facts that you provide to us. Please read our Financial Services Guide and our disclaimer.