A dependent is someone who relies on you, perhaps financially as well as in other ways (e.g. their daily care and every day welfare has to be taken care of).
There are endless possibilities that someone will be dependent on others either permanently or temporarily.
This could be as a result of a permanent disability or illness and also temporarily in the event of an accident or long term illness.
So who is a dependent person?
A child under the age of 18
A parent or step parent who may or may not be living with you
A person with a disability who you look after and is dependent on you
A family member that may have an inability to manage their own finances
As we said the list is endless as we explore who may or may not be dependent on another person for their welfare and financial well being.
In a situation where a person is dependent on you and there is no Will to make provision for that person then many problems are likely to open up, not only for the dependent person but for the family left behind to look after them.
It is not uncommon for people suffering a variety of disabilities to be unable to properly manage their financial affairs.
At the same time, families wish to ensure that an adequate fund is set up to meet their reasonable needs but so as not to affect any social security or pension rights they may have. The flexibility of a Will trust for these people, especially if combined with a memorandum of wishes as to how the trust should be administered, can be an appropriate arrangement.
Plan Now for a Dependents Current and Future Welfare.
Providing for a dependent relative, whether disabled or not, is a profound concern for many families.
Wills with special provisions for dependents (perhaps with a Disability Trust if required) enable families to make provisions for the current and future care and accommodation of family members who meet the dependent and disability criteria.
In making a Will with a Disability Trust, family members are allowed a gifting concession for certain amounts depending on the rules of the country, state or territory of the Will maker. This money is put in a trust for the dependent person.
If the beneficiary is disabled then they are allowed an assets test exemption which in many countries, States and territories preserve their eligibility for public assistance where appropriate. When the recipient dies, the trust ends and the assets are distributed according to the provisions of your will.
If you have a disabled or dependent person in your family, please contact us to discuss how a Dependent/Disability Trust Will can provide security for that person, and peace of mind for you and your family.
IMPORTANT NOTE:
Whether a Special Disability Trust is suitable for your purposes is a complex matter that involves the need to carefully consider your personal circumstances and those of the intended beneficiary.
Those circumstances may change over time, as may other factors such as relevant laws, taxation treatment and relevant policies.
You should always seek advice from qualified legal, taxation and other professional advisers before taking any action in respect to a Special Disability Trust and take into account both long term and short term considerations as applicable to your individual circumstances.
The Special Disability Trust Questions and Answers and all associated information are intended to provide you with generic and high level information only.
While we believe the Information is generally accurate, it is intended for general consideration only and not for decision making purposes.
You should not rely on this Information for any purpose. To the extent permitted by law we are providing this information without any representation or warranty of any kind including, without limitation, in respect to accuracy, completeness or currency and will have no liability to you of any kind in respect to any use that you may make of the Information.
This information is also available on the link below:
For further information contact our team on (08) 9368 1337
Information provided by Willcraft Estate Planning Pty Ltd, An Incorporated Legal Practice.