Assessor Resource

FNSPRT501
Advise clients on trust structures

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to determine a client's complex needs, advise the client on trust structures and prepare trust documentation.

It applies to individuals who are senior level personal trust officers in the personal trustee sector and who have highly developed communication skills and the authority to provide advice on trust structures.

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. Determine client needs and advise client on suitable trust structures

1.1 Discuss the client's personal, financial and family circumstances and identify areas of risk to preservation of the client's assets

1.2 Advise client on trust structures available to mitigate the identified risks including the type of trust, how the trust is created and administered, the taxation consequences of the trust, any legislative requirements for the trust and the role of the trustee

1.3 Discuss and confirm with the client the fees and cost structure for the advice on trust structures and the preparation of trust documentation

1.4 Identify relevant legislation and organisational policies and procedures for consideration in drafting the client's trust documentation

1.5 Seek assistance, advice or other services from internal or external specialist advisers as required

2. Prepare draft trust documentation

2.1 Research relevant strategies, laws and trust structures

2.2 Identify and consider the benefits, risks and taxation consequences of each trust structure proposed

2.3 Prepare, in accordance with legislative and organisational policy requirements, appropriate draft trust documentation for the client to review and consider

3. Present draft trust documentation to the client

3.1 Explain to the client the draft trust documentation, trust structure and trust objectives

3.2 Discuss with the client how the trust structure will achieve asset protection for the client

3.3 Explain to the client what the client will need to do to finalise and implement the draft trust documentation

3.4 Seek and consider the client's feedback on the draft trust documentation

4. Finalise trust documents

4.1 Document any amendments to the draft trust documentation arising from the client's feedback on the draft trust documentation

4.2 Finalise the draft trust documentation and prepare an execution copy of each document

4.3 Discuss with the client any changes in the final trust documentation

4.4 Arrange for the client's due execution of the trust documentation

Evidence of the ability to:

advise the client on suitable trust structure in compliance with legislative and organisational requirements

accurately prepare and present trust and related financial documents according to legal, industry and organisational requirements.

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 a range of client needs and circumstances relevant to trust structures

explain the key legislation and regulations relating to:

wills

trusteeships including investment and obligations of the trustees

investment of trust assets

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

describe the internal and external complaints resolution procedure

examine legal concepts and scope of law covering trusts with particular reference to:

structure of a trust

trust deed

common law duty

role and responsibilities of a trustee

types of trusts

bankruptcy and insolvency

summarise relevant social services benefits and qualification requirements including:

age

disability

unemployment provisions

describe organisational policies and procedures required when advising clients on trust structures

outline products and services offered by personal trustee organisations and fees and charges that apply

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

management and supervision responsibilities

organisational expectations

limitation of personal authority in giving investment advice

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

explain the role of, and how and when to contact, key internal and external specialists relating to the personal trustee sector.

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 advising clients on trust structures

organisational reference materials such as policies, procedures, manuals and checklists.

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. Determine client needs and advise client on suitable trust structures

1.1 Discuss the client's personal, financial and family circumstances and identify areas of risk to preservation of the client's assets

1.2 Advise client on trust structures available to mitigate the identified risks including the type of trust, how the trust is created and administered, the taxation consequences of the trust, any legislative requirements for the trust and the role of the trustee

1.3 Discuss and confirm with the client the fees and cost structure for the advice on trust structures and the preparation of trust documentation

1.4 Identify relevant legislation and organisational policies and procedures for consideration in drafting the client's trust documentation

1.5 Seek assistance, advice or other services from internal or external specialist advisers as required

2. Prepare draft trust documentation

2.1 Research relevant strategies, laws and trust structures

2.2 Identify and consider the benefits, risks and taxation consequences of each trust structure proposed

2.3 Prepare, in accordance with legislative and organisational policy requirements, appropriate draft trust documentation for the client to review and consider

3. Present draft trust documentation to the client

3.1 Explain to the client the draft trust documentation, trust structure and trust objectives

3.2 Discuss with the client how the trust structure will achieve asset protection for the client

3.3 Explain to the client what the client will need to do to finalise and implement the draft trust documentation

3.4 Seek and consider the client's feedback on the draft trust documentation

4. Finalise trust documents

4.1 Document any amendments to the draft trust documentation arising from the client's feedback on the draft trust documentation

4.2 Finalise the draft trust documentation and prepare an execution copy of each document

4.3 Discuss with the client any changes in the final trust documentation

4.4 Arrange for the client's due execution of the trust documentation

Evidence of the ability to:

advise the client on suitable trust structure in compliance with legislative and organisational requirements

accurately prepare and present trust and related financial documents according to legal, industry and organisational requirements.

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 a range of client needs and circumstances relevant to trust structures

explain the key legislation and regulations relating to:

wills

trusteeships including investment and obligations of the trustees

investment of trust assets

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

describe the internal and external complaints resolution procedure

examine legal concepts and scope of law covering trusts with particular reference to:

structure of a trust

trust deed

common law duty

role and responsibilities of a trustee

types of trusts

bankruptcy and insolvency

summarise relevant social services benefits and qualification requirements including:

age

disability

unemployment provisions

describe organisational policies and procedures required when advising clients on trust structures

outline products and services offered by personal trustee organisations and fees and charges that apply

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

management and supervision responsibilities

organisational expectations

limitation of personal authority in giving investment advice

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

explain the role of, and how and when to contact, key internal and external specialists relating to the personal trustee sector.

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 advising clients on trust structures

organisational reference materials such as policies, procedures, manuals and checklists.

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
1.1 Discuss needs and expectations of client and confirm relevant details of client’s personal and financial circumstances, including intended beneficiaries' relevant details and information 
Explain to client nature and purpose of trusts and how they are administered, including taxation and legislative requirements 
Explain to client types of benefits paid from trust and specific factors that must be considered when investing trust assets 
Explain role and responsibilities of trustee in language appropriate to client 
Document and present to client trust structure that is suited to client’s needs in accordance with legislative requirements, and organisational policy and procedures 
Discuss and clarify any concerns client has about advice and recommendation, and determine how client wishes to proceed 
Explain associated fee and cost structures to client and gain formal agreement to proceed 
2.3 Explain process and timeframes for execution and confirm client's understanding 
Prepare trust deed according to client and legislative requirements, and appropriate organisational policy and procedures 
Execute settlement deed and take receipt of initial assets 
Undertake record keeping and safe storage of trust deed according to organisational and legislative requirements 
Confirm all relevant details and information of beneficiaries 
Agree on type of reporting service with client 
4.2 Review needs of beneficiaries for both income and capital, and change trust's investment strategy where appropriate 
Provide ongoing service and management of trust, as required 
1.1 Discuss the client's personal, financial and family circumstances and identify areas of risk to preservation of the client's assets 
Advise client on trust structures available to mitigate the identified risks including the type of trust, how the trust is created and administered, the taxation consequences of the trust, any legislative requirements for the trust and the role of the trustee 
Discuss and confirm with the client the fees and cost structure for the advice on trust structures and the preparation of trust documentation 
1.4 Identify relevant legislation and organisational policies and procedures for consideration in drafting the client's trust documentation 
Seek assistance, advice or other services from internal or external specialist advisers as required 
Research relevant strategies, laws and trust structures 
Identify and consider the benefits, risks and taxation consequences of each trust structure proposed 
Prepare, in accordance with legislative and organisational policy requirements, appropriate draft trust documentation for the client to review and consider 
Explain to the client the draft trust documentation, trust structure and trust objectives 
Discuss with the client how the trust structure will achieve asset protection for the client 
Explain to the client what the client will need to do to finalise and implement the draft trust documentation 
3.4 Seek and consider the client's feedback on the draft trust documentation 
4.1 Document any amendments to the draft trust documentation arising from the client's feedback on the draft trust documentation 
Finalise the draft trust documentation and prepare an execution copy of each document 
Discuss with the client any changes in the final trust documentation 
4.4 Arrange for the client's due execution of the trust documentation 

Forms

Assessment Cover Sheet

FNSPRT501 - Advise clients on trust structures
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Assessment Record Sheet

FNSPRT501 - Advise clients on trust structures

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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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