A Support Trust is a trust fund that may be set up on behalf of a person over the age of 18, living with a disability and who requires supportive services. These funds will not affect eligibility for financial support from this department or the Department of Health and Community Services.
In most cases, at least three people are involved when a Trust Fund is established:
When a Trust Fund is being established it is important that the person or family consult with a lawyer or financial planner, from the beginning to ensure the best interests of the beneficiary are addressed in the terms of the trust.
In order to have a trust fund considered a Support Trust, the beneficiary must be a person requiring supportive services. The Trust, including income generated from it, is to be used to help offset the extra costs experienced by a person living with a disability which are not covered through programs provided by Advanced Education, Skills and Labour or HCS (clothing, communication devices, recreational pursuits, renovations, vehicle modifications, etc.).
A minimum of two per cent of the capital plus the annual interest must be spent every year to purchase items or services for the recipient.
The trustee is required to maintain records outlining the financial situation of the Trust and report to the departments of Advanced Education, Skills and Labour and Health and Community Services annually.
The maximum exemption limit for a Support Trust is $100,000 in liquid assets (including capital and interest) at any given time. This maximum amount can be obtained through one or multiple contributions.
Many parents of children with disabilities who require supportive services and who are currently receiving financial and other supports from Government have expressed concern about planning for the future of their children. While the supports provided by Government would still continue, other supports provided by families to meet the lifestyle needs of their adult children, also need to continue. Establishing a Support Trust is one option available to ensure there is financial support to meet these needs.
A Support Trust enables parents to invest in their children's future well-being. It will be used to maintain the lifestyle needs of their adult children without losing access to financial and other supports provided by Government.
For more information on Support Trusts please contact the toll free # for your region.