What is the Special Needs Trust Office (SNTO)?

What is the Special Needs Trust Office (SNTO)?

The Special Needs Trust Office (SNTO) was established in December 2018, with the Director of Social Welfare Incorporated as the trustee, for managing the assets of deceased parents. Regular disbursements will be made to the carers of their children, who may be individuals or organisations, in accordance with the parents’ wishes.

What is a special needs trust?

Special trusts are those which are created for people with special needs, for example, individuals with serious mental or physical disability and who are unable to provide for themselves financially.

What is a special trust type a?

This type of trust referred to by Sars as a Special Trust Type A. Special trusts can also be used to house assets bequeathed to minor children or beneficiaries in terms of one’s will, and this is known as a Special Trust Type B. What is a Special Trust Type A used for?

Are special trusts effective estate planning tools?

Special trusts can be effective estate planning tools for the safe custody of assets intended for minor children or beneficiaries with special needs. Whether set up as an inter vivos or testamentary trust depends on the intention of the trust founder and the circumstances of beneficiaries whose assets he seeks to protect.

How much does it cost to open a special needs trust?

Currently, the annual fee for each trust account is HK$21,000, subject to annual adjustment according to the change in relevant expenses. Persons who wish to apply for the Special Needs Trust can apply online () or download the application form () and submit the completed form in person or by post, to the SNTO of the SWD.

Who is responsible for paying taxes on a special needs trust?

Who Is Responsible For Paying The Taxes On A Special Needs Trust? It is the trustee’s responsibility to have all the tax returns prepared and to pay all the taxes that a trust owes from the trust.

What is a special-needs trust?

A special-needs trust is another type of trust similar to it, but it is there to provide for a person with a disability, a child, a grandchild or a spouse who has a disability.

Can a special needs trust be the payee of a settlement?

If structured settlement annuity payments are utilized where a special needs trust is involved, the payee of the structured settlement annuity payments must be the special needs trust. What are Medicare set-asides and what role do they play in personal injury settlements? How can they be integrated with a special needs trust?

Are special trusts suitable for disabled people?

These trusts are therefore the ideal vehicle for disabled or mentally handicapped people who are unlike The income of a special trust is taxed at the rate applicable to individuals, which can be significantly lower than the tax rate applied to an ordinary trust (40%).

What is the eligibility criteria for the settlor program?

Eligibility criteria for the Settlor: A Hong Kong permanent resident. A person who is eligible for rehabilitation services subsidised by the Social Welfare Department or admission to special schools of the Education Bureau; and A Hong Kong permanent resident who ordinarily resides in Hong Kong.