Assessor Resource

FNSPRT403
Administer a complex estate

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to apply for administration, identify assets, liabilities and beneficiaries to distribute and finalise a complex estate.

It applies to individuals who are senior level personal trust officers and may be required to identify and manage complex matters of, and administer, an estate. They may also locate beneficiaries, identify estate assets and liabilities and prepare and lodge tax returns and financial statements to distribute and finalise the estate.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Initiate estate administration process

1.1 Open an estate file in accordance with organisational requirements

1.2 Advise relevant parties on the role of executor and the estate administration process including the types of administration

1.3 Identify and manage complex matters, possible risk factors and irregularities in regards to the will and the estate's assets, liabilities and beneficiaries, seeking the services of a specialist when necessary

1.4 Prepare and lodge application to prove the will and obtain administration

1.5 Record authority, on receipt, to commence administration

2. Identify estate assets, liabilities and beneficiaries

2.1 Obtain valuation of estate's assets and liabilities

2.2 Prepare statements of assets and liabilities on organisation's record keeping system

2.3 Prepare a tax return to date of death, seeking assistance from specialists as necessary

2.4 Locate all beneficiaries and establish their identity

2.5 Collect, manage and secure assets and liquid assets according to organisational and legislative requirements

2.6 Prepare and submit a schedule of beneficiaries and their entitlements to appropriate persons within the organisation for approval

3. Distribute and finalise estate

3.1 Advise beneficiaries of any capital gains tax (CGT) implications and refer to a tax specialist where necessary

3.2 Pay liabilities and transfer assets that have not been liquidated in accordance with the will or beneficiaries' instructions

3.3 Prepare and lodge a trustee tax return seeking assistance from specialists as necessary

3.4 Calculate and deduct corpus commission, fees and charges that apply

3.5 Prepare and arrange final distribution payments and financial statements to be provided to beneficiaries

Evidence of the ability to:

identify and manage complex matters, possible risk factors and irregularities in administering an estate

conduct research to prove the will and confirm existence of a complex estate's assets, liabilities and beneficiaries according to legislative and organisational requirements

locate beneficiaries and calculate their entitlements according to legislative and organisational requirements

prepare documentation to apply for administration of a complex estate

prepare financial and tax documentation, including capital gains tax, for the administration of a complex estate.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

describe the key legislative requirements of federal, state and territory legislation and regulation relating to:

wills

probate and administration

intestate succession

trusteeships including investment obligations of the trustees preparing an application for administration

taxation and tax obligations as they relate to the administration of estates and trusts

outline the role, responsibilities and authority of an executor

describe the process to prove a will

discuss the risk factors and irregularities in the will which increase the chance of litigation including:

family maintenance provisions

validity of the will

informal will

identify and manage complex estate matters including:

conflict between beneficiaries

capital gains tax

complex assets due to volume, physical location and type

complex beneficiaries due to volume, physical location and potential bankrupt status and other vulnerabilities

describe organisational policies and procedures required in administering a complex estate, including conflict and complaint resolution

outline the role, responsibilities and powers of the senior personal trust officer including:

management and supervision responsibilities

organisational expectations

limitation of personal authority in giving investment advice

identify the role of, and how and when to contact, internal or external specialists relating to the personal trustee sector

outline the professional code of conduct, where applicable, in the personal trustee sector

establish potential estate liabilities including:

claims on the estate

fees and charges and other administration expenses

debts of the deceased

final tax return obligations of the deceased.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the personal trustee field of work and include access to:

common office equipment, technology, software and consumables

appropriate legislation and regulations relevant to administering a complex estate

organisational reference materials such as policies, procedures, manuals and checklists the internet for searches.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Initiate estate administration process

1.1 Open an estate file in accordance with organisational requirements

1.2 Advise relevant parties on the role of executor and the estate administration process including the types of administration

1.3 Identify and manage complex matters, possible risk factors and irregularities in regards to the will and the estate's assets, liabilities and beneficiaries, seeking the services of a specialist when necessary

1.4 Prepare and lodge application to prove the will and obtain administration

1.5 Record authority, on receipt, to commence administration

2. Identify estate assets, liabilities and beneficiaries

2.1 Obtain valuation of estate's assets and liabilities

2.2 Prepare statements of assets and liabilities on organisation's record keeping system

2.3 Prepare a tax return to date of death, seeking assistance from specialists as necessary

2.4 Locate all beneficiaries and establish their identity

2.5 Collect, manage and secure assets and liquid assets according to organisational and legislative requirements

2.6 Prepare and submit a schedule of beneficiaries and their entitlements to appropriate persons within the organisation for approval

3. Distribute and finalise estate

3.1 Advise beneficiaries of any capital gains tax (CGT) implications and refer to a tax specialist where necessary

3.2 Pay liabilities and transfer assets that have not been liquidated in accordance with the will or beneficiaries' instructions

3.3 Prepare and lodge a trustee tax return seeking assistance from specialists as necessary

3.4 Calculate and deduct corpus commission, fees and charges that apply

3.5 Prepare and arrange final distribution payments and financial statements to be provided to beneficiaries

Evidence of the ability to:

identify and manage complex matters, possible risk factors and irregularities in administering an estate

conduct research to prove the will and confirm existence of a complex estate's assets, liabilities and beneficiaries according to legislative and organisational requirements

locate beneficiaries and calculate their entitlements according to legislative and organisational requirements

prepare documentation to apply for administration of a complex estate

prepare financial and tax documentation, including capital gains tax, for the administration of a complex estate.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

describe the key legislative requirements of federal, state and territory legislation and regulation relating to:

wills

probate and administration

intestate succession

trusteeships including investment obligations of the trustees preparing an application for administration

taxation and tax obligations as they relate to the administration of estates and trusts

outline the role, responsibilities and authority of an executor

describe the process to prove a will

discuss the risk factors and irregularities in the will which increase the chance of litigation including:

family maintenance provisions

validity of the will

informal will

identify and manage complex estate matters including:

conflict between beneficiaries

capital gains tax

complex assets due to volume, physical location and type

complex beneficiaries due to volume, physical location and potential bankrupt status and other vulnerabilities

describe organisational policies and procedures required in administering a complex estate, including conflict and complaint resolution

outline the role, responsibilities and powers of the senior personal trust officer including:

management and supervision responsibilities

organisational expectations

limitation of personal authority in giving investment advice

identify the role of, and how and when to contact, internal or external specialists relating to the personal trustee sector

outline the professional code of conduct, where applicable, in the personal trustee sector

establish potential estate liabilities including:

claims on the estate

fees and charges and other administration expenses

debts of the deceased

final tax return obligations of the deceased.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the personal trustee field of work and include access to:

common office equipment, technology, software and consumables

appropriate legislation and regulations relevant to administering a complex estate

organisational reference materials such as policies, procedures, manuals and checklists the internet for searches.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Undertake initial procedures for opening estate file 
Identify possible risk factors and irregularities in will and employ appropriate strategies 
Ensure that urgent matters are dealt with in timely and professional manner 
Advise co-executors, where they exist, about options regarding their role and estate administration process 
Undertake process to prove will 
Identify assets and liabilities, and ensure assets are collected, transmitted or realised as requested 
Deposit liquid assets in appropriate funds and receipt cash according to legal requirements, when necessary 
Take steps to ensure that property is adequately insured and secured, particularly where conflict may occur 
Confirm arrangements for storage of chattels and handing over of any bequests 
Advise beneficiaries of capital gains tax (CGT) implications and promptly distribute assets according to terms of will 
Prepare and submit Scheme of Appropriation to appropriate persons for approval and comply with all internal audit requirements 
Ensure distributed estate is finalised 
Make arrangements for final tax return to be prepared and lodged with Australian Taxation Office (ATO), if required 
2.1 Obtain valuation of estate's assets and liabilities 
2.2 Prepare statements of assets and liabilities on organisation's record keeping system 
Prepare a tax return to date of death, seeking assistance from specialists as necessary 
Locate all beneficiaries and establish their identity 
Collect, manage and secure assets and liquid assets according to organisational and legislative requirements 
Prepare and submit a schedule of beneficiaries and their entitlements to appropriate persons within the organisation for approval 
Advise beneficiaries of any capital gains tax (CGT) implications and refer to a tax specialist where necessary 
3.2 Pay liabilities and transfer assets that have not been liquidated in accordance with the will or beneficiaries' instructions 
Prepare and lodge a trustee tax return seeking assistance from specialists as necessary 
Calculate and deduct corpus commission, fees and charges that apply 
Prepare and arrange final distribution payments and financial statements to be provided to beneficiaries 

Forms

Assessment Cover Sheet

FNSPRT403 - Administer a complex estate
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Assessment Record Sheet

FNSPRT403 - Administer a complex estate

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Assessment task 1: [title] Result: Competent Not yet competent

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Overall assessment result: Competent Not yet competent

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