4.12.3.80 Assessable Income & Assets from Court-Ordered (Statutory) Trusts

Summary

This topic provides information on the following:

  • history of the assessment of court-ordered (statutory) trusts, and
  • post 18 May 2005 assessment of court-ordered trusts.

History of the assessment of court-ordered (statutory) trusts

Court-ordered (statutory) trusts were not generally assessable under the Trusts and Companies rules until the Disallowable Instrument was remade on 18 May 2005. The Disallowable Instrument, Social Security (Means Test Treatment of Private Trusts - Excluded Trusts) Declaration 2001, stated:

  • each trust that is a court-ordered trust is an excluded trust for the SSAct section 1207P,
  • a court-ordered trust is a trust created by an order of a court that:
    • relates to a personal injury matter, and
    • provides for some or all of the proceeds of the judgement of the court, or of a settlement between parties, to be held in trust for the benefit of the person in whose favour the judgement or settlement was made.

Act reference: SSAct section 1207P Designated private trusts

Policy reference: SS Guide 4.7.3.70 Assessable Income & Assets from Statutory Trusts

Post 18 May 2005 assessment of court-ordered trusts

On 18 May 2005 the Disallowable Instrument, Social Security (Means Test Treatment of Private Trusts - Excluded Trusts) Declaration 2005, was remade. From this date the private trusts and companies rules apply to court-ordered trusts.

Last reviewed: 16 May 2016