Trust expenditure requirements
1209RA Trust expenditure requirements
Limit on expenditure for purposes other than primary purpose
If:
a determination has been made under subsection (3); and
the trust has one or more purposes, other than its primary purpose described in subsection 1209N(1), that are primarily for the benefit of the principal beneficiary;
the total value of the income and assets of the trust applied for those other purposes in a financial year must not exceed the value specified in the determination for that year.
Instruments fixing limits and purposes to be taken into account
If guidelines are made under paragraph 1209N(4)(b), the question whether a purpose for which income and assets of a trust have been applied is one of the other purposes described in subsection (1) must be decided in accordance with the guidelines.
Paragraph 1209N(4)(b) provides for guidelines for deciding what are, and what are not, trusts’ purposes, other than the primary purpose described in subsection 1209N(1), that are primarily for the benefit of beneficiaries of the trusts.
The Secretary may, by legislative instrument, determine the total value of income and assets of a special disability trust that may be applied in a specified financial year for purposes, other than the primary purpose described in subsection 1209N(1), that are primarily for the benefit of the principal beneficiary of the trust.
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.