Special needs trust

Special needs trust

The Special Needs Trust programme was established in 2018 to allow parents/relatives of a person with special needs to have their assets managed in the form of a trust for the person with special needs. The idea is that the parents/relatives (the Settlor) will be able to prepare a care plan while they are still alive to meet the long-term daily needs of the person with special needs (the Beneficiary), and after they have died, this plan will be implemented by a specified individual or institutional carer.

In terms of eligibility criteria, a Settlor will need to fulfill the following:

1. Be a parent or relative of a person with special needs;
2. Be aged 18 or above;
3. Not be an undischarged bankrupt at the time of signing the trust deed; and
4. Be a Hong Kong permanent resident.

The Beneficiary will need to fulfill two criteria, as follows:

1. Be a person with intellectual disability, mental disorder or autism; and
2. Be a Hong Kong permanent resident who ordinarily resides in Hong Kong.

In order to create this trust, the Settlor will need to do all of the following:

1. Sign a Deed of Trust with the Social Welfare Department.
2. Submit a Letter of Intent and a Care Plan for the Beneficiary, as well as specify the future individual or institutional carer(s) of the Beneficiary. The Settlor should ensure that any carer appointed is willing and able to perform the carer role and to promote the best interests of the Beneficiary.
3. Make a will that provides instructions on the transfer of funds to the Special Needs Trust after their death.

An annual fee at a flat rate will be charged once the trust account is activated.