Section 1209R — Social Security Act 1991: Trust property requirements

(1) The assets of the trust must not include any asset transferred to the trust by the principal beneficiary of the trust, or the principal beneficiary’s partner, unless: (a) the transferred asset is all or part of a bequest, or of a superannuation death benefit; and (b) the transferor received the bequest or superannuation death benefit not more than 3 years before transferring the transferred asset. (2) The assets of the trust must not include any compensation received by or on behalf of the principal beneficiary. (3) The trust must not be used to pay an immediate family member, or a child, of the principal beneficiary for the provision to the beneficiary of: (a) care services; or (b) services for the repair or maintenance of the beneficiary’s accommodation. Note: For immediate family member, see subsection 23(1). (4) The trust must not be used to purchase or lease property from an immediate family member, or a child, of the principal beneficiary, even if the property is to be used for the beneficiary’s accommodation. Note: For immediate family member, see subsection 23(1). (5) In this section: child of a principal beneficiary means: (a) a natural child, adopted child or step-child of the beneficiary; or (b) someone who is a child of the beneficiary within the meaning of the Family Law Act 1975. property includes: (a) a right to accommodation for life in a residence; and (b) a life interest in a residence.