How are assets of the Special Disability Trust treated?
According to section 1209Y of the Act, assets of the Special Disability Trust (valued up to $551,750 which is indexed on 1 July each year to CPI) are not included in the assets of the principal beneficiary of the Trust for the purpose of the Centrelink asset test when assessing the eligibility for pension. However, if the value of the assets owned by the Trust exceeds $551.750 (the Trust’s asset value limit), the extent to which it exceeds the limit will be included in the assets of the principal beneficiary and will be counted for the asset test. This amount is indexed annually. Importantly, the principal home of the beneficiary will not be counted in the assets test.
