How could a Granny Flat work in a Specialist Disability Trust?

April 21, 2023

Families of children with disabilities often face a range of challenges when it comes to planning for their future, including financial planning. A specialist disability trust (SDT) is a legal arrangement that can provide peace of mind and financial security for families of children with disabilities.

So, what exactly is a specialist disability trust? Simply put, it's a trust set up specifically for the benefit of a person with a disability. The trust can be established by a parent, grandparent, sibling or legal guardian of the person with a disability. The purpose of the trust is to provide for the ongoing care and support of the person with a disability, and to ensure that their financial assets are managed appropriately.

One of the main benefits of a specialist disability trust is that it can help to protect the assets of the person with a disability. This is important because if the person were to receive a large inheritance or compensation payment, it could affect their eligibility for government benefits such as the Disability Support Pension or the National Disability Insurance Scheme (NDIS). By putting the assets into a trust, the person can still receive these benefits while also having access to additional financial resources to pay for things like medical expenses, housing and other needs.

Another benefit of an SDT is that it can provide ongoing financial security for the person with a disability, even after their parents or other caregivers have passed away. The trust can be set up to provide regular payments to the person with a disability, or to cover specific expenses such as medical bills or housing costs. This can give families peace of mind knowing that their loved one will be taken care of even after they are no longer around.

When to use a specialist disability trust


So when would you use a specialist disability trust in Australia? There are a few situations where it may be appropriate. For example, if you are the parent or caregiver of a child with a disability and you want to ensure that they are taken care of financially after you pass away, you may want to consider setting up an SDT. Additionally, if the person with a disability is set to receive a large sum of money (such as an inheritance or compensation payment), an SDT can help to protect those assets and ensure that they are used appropriately.

You would always need to consult with a legal specialist, however, when thinking about the Granny Flat you built for your family member after you go, you may look to come to some sort of arrangement where your entire land and home goes into trust, which would include the Granny Flat, the front home would then be managed as a rental, providing income to the trust (and to your child), and a perpetual allowance would be made for the Granny Flat to be their home. You can even make provisions for the upkeep. Of course it’s a little more complicated to set up than that but know that building a Granny Flat is certainly an option that families with needs like this are looking at for care now and into the future.

A specialist disability trust can provide important financial security and peace of mind for families of children with disabilities in Australia. By setting up a trust specifically for the benefit of the person with a disability, families can ensure that their loved one is taken care of both now and in the future. If you think an SDT may be appropriate for your situation, it's important to speak with a lawyer or financial advisor who has experience in this area.

At Cubitt's, we focus on promoting choice for our clients. To achieve this, we deliver our service in collaborative and flexible way. If you are considering a Granny Flat as an option for your family, you are welcome to take your time browsing in our showrooms - bring in as many family members as you like, and see how comfy and spacious they can be - and of course talk to our team about how they can be customised to what you need.

This article was written by our Care Customer Specialist, Shayoni Shah. As our dedicated ambassador to those needing to understand what customisations and adaptations are required on a individual level, Shay has gone the extra mile to receive specialised training in providing exceptional support for customers who require extra care in their Granny Flat builds. Her expertise in accessible design and customer service will ensure a seamless and stress-free building experience for all client. If you'd like to speak to Shay when you call - simply ask for her, or email

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