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Example of an assessment of a protective trust established after 7:30 pm on 9 May 2000
John is single, 35 years old and works at the local meat works. Four years ago, John's sibling Sally received severe brain injuries as a result of a motor vehicle accident. Sally received a large compensation settlement which was placed in a trust.
John's widowed parent Alice, aged 70, looks after Sally. Because Sally is unable to manage their own financial affairs, Alice has official control over the money in the trust. Alice conscientiously administers the fund for Sally's exclusive benefit.
Alice is concerned about losing the pension, as it is the only source of income. Alice visits the local Centrelink office and sees a Financial Information Service (FIS) Officer. Alice is relieved to learn that the income and assets from the trust will not affect the pension as the trust funds originated for, and are used for, Sally's benefit.
Alice is not getting any younger and is also concerned that one day control of the trust will be handed over to John. John's job is a bit shaky and in the past has spent periods of time on income support payments. Alice is relieved to find out that if John has to take over the management of the trust John would still be able to get government help, if required, provided the trust funds continue to be used for Sally's exclusive benefit.
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