Trusts - Beneficiaries receiving Centrelink

Discussion in 'Accounting, Tax & Legal' started by goponcho__, 17th Dec, 2019.

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  1. goponcho__

    goponcho__ Well-Known Member

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    Hi,

    Creating my family trust where the beneficiaries are reasonably generally stated.

    However 2 of the parents/in laws are receiving the pension or will be potentially in the future.

    I have read that any beneficiary is deemed by Centrelink to have control of all the assets and income of the whole trust, for Centrelink assessment purposes. This will likely have significant impact on their eligibility for Centrelink.

    Is the usual process to explicitly exclude anyone who may potentially receive benefits, by naming them as being excluded in the deed? Or a clause to allow themselves to nominate for exclusion?

    Seems odd that my decision as a trustee, can affect their payments, even though they may not contribute to the decision or even know about it.


    Thoughts/experiences??
    Thanks!
     
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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  3. goponcho__

    goponcho__ Well-Known Member

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    Bit confusing.

    So dont necessarily have to specifically exclude persons that may receive Centrelink benefits in the future? But they may or may not have to include all trust assets/income as their own?

    The law/govt sure is vague!
     
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Read this section
    SOCIAL SECURITY ACT 1991 - SECT 1207V Controlled private trusts
     
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