How to identify a private trust 043-04020010

This document outlines information on how to identify if a customer is involved in a private trust.

Definition of a trust

A trust is an obligation binding a person (the trusted) to hold property (the trust property) for the benefit of persons (the beneficiaries). The trustee may be an individual or a private company. The beneficiaries may be individuals and/or other trusts or companies.

Means test treatment of private trusts

If a customer is involved in a private trust, the income and assets of that trust may be taken into account (attributed to the customer) when working out their income support payments or concessions.

Attribution decision delegation

The attribution decision is made by a Complex Assessment Officer (CAO) based on information provided on the Private Trust form (MOD PT) or Special Disability Trust form (MOD SDT) and accompanying documents.

Ways to identify a private trust

There are a few indications that the business structure in which a customer is involved is a trust, such as:

The claim form, MOD PT or MOD SDT, completed by the customer or their representative indicates an involvement in a trust. As a customer may not be fully aware of their own financial circumstances, completion of the MOD PT or MOD SDT is not always a reliable indicator that the customer is involved in a trust
Among the documents provided by the customer or their representative there is a trust deed
The tax return provided is a trust tax return
The balance sheet shows 'settled sum' or uses terms like 'beneficiary loan accounts'
The customer states they hold a bank account or real estate for a family member

System information for Public Trusts

If the trust investment can be located in the Managed Investment System (MIN) or the Securities and Investment System (SIN) then the trust is not a private trust.

If a record of the investment on MIN or SIN cannot be found, check the FINS Bulletin - Financial Industry and Network Support for investment help and information. If in doubt, contact the Financial Information Service Officer (FIS) or a CAO for advice.

FINS is part of the Level 2 Policy Helpdesks, Vulnerable Rural and Supplementary Branch. FINS responsibilities include:

the maintenance of Centrelink's national share database (SIN)
the identification and location of products on the SIN system
updating the FINS Bulletin

The Resources page contains links to the Level 2 Policy Helpdesk Online Query Form used to contact the FINS Helpdesk. It also contains a link to the FINS Bulletin.