A special disability trust is established to provide for the current and future needs of a person with a severe disability or medical condition.

Generally, the trust is established to pay for any care, accommodation, medical costs and other needs of the beneficiary during their lifetime.

A special disability trust can be established through a Will, or by living family members.

To establish a special disability trust, the beneficiary must verify that they are severely disabled and the trust deed must meet the purpose of the special disability trust.

An individual who has a severe disability or medical condition (including physical, intellectual, psychiatric or behavioural disabilities and medical conditions) and also meets certain Centrelink or Veterans' Affairs criteria may qualify as a beneficiary of a special disability trust.

Immediate guardians and family members can contribute trust assets up to $500,000 without reducing the social security entitlements or the income support payments of the beneficiary.

Any assets which produce income - like cash, shares, managed funds and rental properties - or any assets that provide care and accommodation to the beneficiary (such as a house or unit, modified vehicle or wheelchair) can be donated to the trust.

A special disability trust exists for a beneficiary's lifetime, while the necessary eligibility criteria is met.