Section 1209ZA — Social Security Act 1991: The effect of exceeding the $500,000 limit

(1) If section 1209Z would apply to a transfer of an asset except for the fact that the value of the transferred asset exceeds $500,000, that section does not prevent the transfer from being a disposal or disposition of the asset, but the amount of the disposal or disposition is taken to be the amount of the excess. (2) If: (a) section 1209Z would apply to a transfer of an asset but for the fact that the sum of: (i) the values of all of the exempt transfers that have already been made to the trust or any other special disability trust that had the same principal beneficiary; and (ii) the value of the transferred asset; exceeds $500,000; and (b) that sum would not exceed $500,000 if the value of the transferred asset were disregarded; that section does not prevent the transfer from being a disposal of the asset, but the amount of the disposal or disposition is taken to be the amount of the excess referred to in paragraph (a). (3) This section has effect subject to section 1209ZD. (4) In this section: other special disability trust includes a special disability trust within the meaning of the Veterans’ Entitlements Act. value, of an asset transferred to a special disability trust, means the market value of the asset at the time of the transfer.