Application
This unit describes the skills and knowledge required to apply for administration, identify assets, liabilities and beneficiaries to distribute and finalise a non-complex estate.
It applies to individuals who are proficient administrators in the personal trustee sector. They may locate beneficiaries, identify estate assets and liabilities and prepare tax returns and simple financial statements to distribute and finalise the estate.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
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 and confirm there are no existing complex matters 1.2 Advise relevant parties on the role of executor and the estate administration process including the types of administration 1.3 Confirm existence of estate's assets and beneficiaries 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 assets and liabilities 2.2 Prepare statements of assets and liabilities on organisational 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 and deposit liquid assets into estate account with cash receipted, when necessary, according to organisational and legislative requirements 2.6 Prepare and submit a schedule of beneficiaries and their entitlements to appropriate persons in the organisation for approval |
3. Distribute and finalise estate | 3.1 Prepare a trustee tax return where required seeking assistance from specialists as necessary 3.2 Pay liabilities and transfer assets that have not been liquidated in accordance with the will or beneficiaries' instructions 3.3 Calculate and deduct corpus commission, fees and charges that apply 3.4 Prepare and arrange final distribution payments and financial statements to be provided to beneficiaries |
Evidence of Performance
Evidence of the following must be provided:
conduct research to prove the will and confirm existence of 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 an estate
prepare financial and tax documentation for the administration of an estate.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
describe the key legislative requirements of federal, state and territory legislation and regulations relating to:
wills
intestate succession
probate and administration
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 processes required to prove a will and to administer the estate
identify complex estate issues 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
outline the professional code of conduct, where applicable, in the personal trustee sector
describe organisational policies and procedures relevant to administering a non-complex estate
outline products and services offered by personal trustee organisations and fees and charges that apply
outline the role, responsibilities and powers of the personal trust officer including limitation of giving investment advice
identify the role of, and how and when to contact, internal or external specialists relating to 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 Conditions
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 an 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.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 1.4, 2.1 | Analyses and consolidates information and data from a range of sources against defined criteria and requirements and checks for accuracy and completeness |
Writing | 1.4, 1.5, 2.2, 2.3, 2.6, 3.1, 3.4 | Accurately records and completes organisational and statutory documents and correspondence using clear language and correct spelling, grammar and terminology |
Oral Communication | 1.2, 2.2 | Articulates clearly using vocabulary suitable to audience to convey or request information Uses listening and questioning techniques to confirm understanding |
Numeracy | 1.3, 2.1, 2.2, 2.3, 2.5, 2.6, 3.1–3.4 | Performs mathematical calculations to analyse financial information, costs and values to accurately process assets and liabilities |
Navigate the world of work | 1.1, 2.5, 2.6 | Complies with explicit policies and procedures Explores and implements, where identified, the implicit expectations of policies and procedures |
Interact with others | 1.2, 2.3, 3.1 | Identifies and takes steps to follow accepted communication practices and protocols Uses a limited range of accepted practices for communicating in a work environment |
Get the work done | 1.1, 2.4–2.6, 3.2 | Plans and implements routine tasks and workload, making limited decisions on sequencing, timing and collaboration, and seeks assistance in setting priorities Makes low impact decisions within familiar situations based on a range of predefined or routine solutions Uses digital systems and technologies to access, store and share information |
Sectors
Personal trustee