Special trusts for parents of people with severe disabilities

The Government has announced a package, to take effect from September 2006, which provides for parents or other immediate family members of a person with a severe disability to establish a private trust up to $500,000 for the future care of that person without being affected by social security income tests and gifting rules.

Income from the trust will not affect the person's Disability Support Pension.

As well, gifts to the trust from the parents of immediate family members will not affect the donor's Age Pension or Department of Veteran's Affairs Service Pension.

The $500,000 limit will be increased annually in line with the CPI.

The Prime Minister's media release is available on his website.
http://www.pm.gov.au/news/media_releases/media_Release1627.html