Special Disability Testamentary Trusts – What Are They?
A special disability testamentary trust (SDTT) is a type of trust created in a will for the benefit of a person with a disability. The purpose of an SDTT is to provide financial support and protection for the disabled person after the death of the person creating the trust in their Will (the testator).
The trust is designed to be a long-term solution for the disabled person’s financial needs, while also allowing them to continue receiving government benefits without impairing their entitlements.
An SDTT is considered “special” because it is specifically tailored to meet the unique needs of the disabled person by considering their current and future medical expenses, as well as other costs associated with their disability. The trust is managed by a trustee, who is responsible for making distributions to the disabled person according to the terms of the trust.
One of the key benefits of an SDTT is that it can help preserve the disabled person’s eligibility for government benefits.
Creating an SDTT can be a complex process, and it is important to work with an experienced solicitor who can help ensure that the trust is properly prepared, structured and administered.
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All information on this site is general information only, and does not constitute specific legal advice. Please consult one of our experienced legal team for specific advice relevant to your situation.