NSW Trust Fund Inheritance impacts on Disability Payments

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Ken Johnston

Member
12 September 2019
2
0
1
How will a Centrelink Disability support payment be impacted by an inheritance where the beneficiary will receive money distributed from a Trust Fund. I understand that it may be categorised as Non- remunerative.
The money will be used to manage medical conditions and quality of life etc.
 

Tim W

Lawyer
LawTap Verified
28 April 2014
3,575
693
2,894
Sydney
1. How you spend it is irrelevant.
2. No, there's nowhere and no way to hide it.
3. Start here.
 

Tim W

Lawyer
LawTap Verified
28 April 2014
3,575
693
2,894
Sydney
As the person is on a DSP, it may be worth looking into whether a Special Disability Trust can be formed (if he testator's still alive, alter the will to allow for this), or if the testamentary trust can distribute to a new SDT (if the testator has already died): Special Disability Trusts - Australian Government Department of Human Services
Yeah.
If suitable, including if there is a potential trustee who is willing, able, and affordable,
this has a lot to recommend it.
 
  • Like
Reactions: Perp

Ken Johnston

Member
12 September 2019
2
0
1
How will a Centrelink Disability support payment be impacted by an inheritance where the beneficiary will receive money distributed from a Trust Fund. I understand that it may be categorized as non- remunerative.

The money will be used to manage medical conditions and quality of life etc.
Thanks for the advice, however, the person does not have a severe disability but is on the disability pension. I read that when a special disability trust is set up, then the beneficiaries can only be given a distribution maximum of $12,000 per year to be used for only certain things. That just works out to be $230 per week over 52 weeks.