By CHAT News Today

Province making changes to trusts for people with disabilities

Mar 20, 2018 | 6:20 AM

EDMONTON- The province is proposing changes to the Assured Income for the Severely Handicapped (AISH) Program.

Irfan Sabir, the Minister of Community and Social Services, tabled Bill 5, The Act to Strengthen Financial Security for Persons with Disabilities, in the provincial legislature on Monday.

The bill would change the program’s treatment of both discretionary and non-discretionary trusts.

If the bill passes, both types of trusts would be exempted as assets under AISH Act when determining eligibility for the program.

It would also allow families, guardians and AISH recipients the opportunity to set up trusts to provide for persons with disabilities, without affecting their eligibility for the program.

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“All Albertans should be able to plan for their children’s future,” said Sabir in a statement. “This legislation would allow all Albertans and their families the time and security to plan for their children’s financial future.”

The bill also notes there will be a one-year exemption granted to allow applicants, clients and their spouse or partner to invest the funds into the trusts or exempt assets.

The asset rules on trusts currently in place are unclear and penalize some families.

The current policy allows for exemption on non-discretionary trusts as an asset on a case-by-case basis, but a person with a disability holding a discretionary trust asset is ineligible for AISH, regardless if they are receiving payments from the trust.

Discretionary trusts mean the trustees have absolute discretion to distribute income and capital from the trust to the beneficiary, while non-discretionary trusts limit control and distribution.

The treatment of trust income, however, will not change under the new bill, and it could impact the amount of money received by AISH recipients.

The applicant’s age, residency, financial and medical situation are considered to determine eligibility for the program, and the monthly living allowance a client receives depends on any other income they or their partner/spouse has.

An estimated 60,000 Albertans receive AISH benefits.

If the bill is passed, the changes will take effect on April 1.

(The Canadian Press)