Jary* had his share of challenges in life. His Down syndrome caused an array of health issues, as well as limiting his communication to non-verbal means such as gestures.

While Jary received a government pension, the money didn’t stretch far given the complexity of his needs. So when he received a family inheritance, it appeared to be the type of one-off gain that could change his life for the better.

However, receiving a large pot of money often raises as many questions as answers. It could have potentially had tax implications or reduced his pension.

The answer was a Special Disability Trust (SDT), which was managed by Equity Trustees. SDTs were first enabled by legislation 2006. They attract social security means test concessions for the beneficiary and eligible contributors.

“It's not just like anyone can start one up because you have to meet the Centrelink criteria,” says Equity Trustees Trust Manager Carmel Kenny.

The criteria are strict. Jary’s mental and physical challenges meant he met the strict definition of “severe disability” under the legislation.

The Trust’s main purpose is also to pay for accommodation and reasonable medical care related to the beneficiary’s disability. A lower amount (currently up to $14,500 indexed on July 1 each year) can be used for discretionary spending such as recreation or activities. The trustee must then submit annual accounts for a Centrelink audit.

“There’s a lot of governance and control over it,” Carmel says. “Then we make sure it's invested to provide for this person's particular ongoing needs.”
The SDT has changed Jary’s life.

It means he has an extra source of funds to cater for his special needs, while he can also receive a full government pension.

The specialised advice of Equity Trustees means the funding left to him by his family will be well-managed and help him live the rest of his life to the full.

* Name changed to protect privacy.