NSW Trust Fund Inheritance impacts on Disability Payments

[Ken Johnston]

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]

1. How you spend it is irrelevant.
2. No, there's nowhere and no way to hide it.
3. Start here.

 

[Perp]

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

 

[Tim W]

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.

 

[Ken Johnston]

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.