Resigning/relinquishing control of a trust or company or beneficial interest in a trust 043-04030080

Jacki is the controller of a trust with assets of $400,000. Jacki decides to relinquish control of the trust but does not do this until 2 April 2002.

The assets of the trust were attributed to Jacki under the new trust and company rules from 1 January 2002. As Jacki did not relinquish control of the trust before 1 April 2002, Jacki is considered to have 'gifted' the trust assets of $400,000 and the deprivation provisions apply.

They were previously linked to a private trust when they were last in receipt of an income support payment back in 2015.

They advise that they that are no longer involved in this private trust and provide evidence that they have resigned from all formal positions and relinquished their beneficial interest on 1 October 2016.

They are requested to provide a written declaration that they have not exerted any control or derived any benefit since 1 October 2016. They lodge this declaration on 2 April 2022.

Services Australia can accept that they have satisfied the requirements for a genuine relinquishment of control on 1 October 2016.

Bob and June relinquish their beneficial interest on 1 July 2022.

Bob and June claim the pension on 2 July 2022.

They are requested to provide a written declaration that they have not exerted control or derived any benefit from the trust since 1 July 2022 and lodge this on 15 August 2022.

Services Australia can accept that they have satisfied the requirements for a genuine relinquishment of control on 1 July 2022.
As they were still beneficiaries up until 1 July 2022, Services Australia cannot accept a genuine relinquishment until this date.

Fred and Wilma sell/transfer all their shares in the company on 5 January 2022.

Fred and Wilma claim the pension on 30 April 2022.

They are requested to provide a written declaration that they have not exerted control or derived any benefit from 5 January 2022 and lodge this on 25 May 2022.

Services Australia can accept that they have satisfied the requirements for a genuine relinquishment of control on 5 January 2022.

Omar and Eva relinquish their beneficial interest on 30 March 2022.

Omar and Eva claimed the age pension on 12 April 2022.

They declared that they were still shareholders and officeholders in the trustee company for their private trust.

They were advised by Services Australia for us to accept they have made a genuine relinquishment of control of the trust, they must also relinquish control of the trustee company and provide written declarations for both the trust and trustee company.

Omar and Eva subsequently transferred all their shareholdings and resigned from all formal positions in the trustee company on 15 May 2022 and provided written declarations for both.

Services Australia can accept that they have satisfied the requirements for a genuine relinquishment of control on 15 May 2022 (the date they satisfied the requirements for the trustee company).

If Omar and/or Eva had received any distributions in the past 12 months prior to resignation, the distribution would continue to be assessed as income until the end of the 52 week period.

Pippa was only a beneficiary of the trust, she was not assessed as a controller.

On 1 April 2022 she provided an amended trust deed to show she has been removed as a beneficiary of the trust. The amendment was dated 1 April 2022.

Pippa was last paid a distribution of $20,000 on 30 June 2021. This distribution continues to be assessed until the end of the 52 week period.

Pippa had a beneficiary loan of $30,000 to the trust. She advised that this loan has been repaid in full on 1 April 2022.

Customer advised she placed her funds into her personal bank account.