Application
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.
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 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 Performance
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.
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 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 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 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.
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, 1.3, 2.1, 2.4 | Critically analyses wills and other documentation from a variety of sources and consolidates information to determine requirements |
Writing | 1.1, 1.4, 1.5, 2.2, 2.3, 2.6, 3.3, 3.5 | Accurately records information and prepares correspondence and documentation using clear language and organisational formats and protocols |
Oral Communication | 1.2, 1.3, 3.1, 3.3 | Uses specific and sensitive language suitable to the audience to convey and request information Reads verbal and non-verbal signals and uses listening and questioning to confirm understanding |
Numeracy | 2.1–2.3, 2.5, 2.6, 3.1–3.5 | Uses highly developed numeracy skills to interpret complex financial information, perform difficult calculations and translate the taxation obligations of the deceased in accordance with Australian Tax Office (ATO) requirements |
Navigate the world of work | 1.1, 1.4, 2.2, 2.5, 2.6, 3.3–3.5 | Takes personal responsibility for following explicit and implicit policies, procedures and legislative requirements |
Interact with others | 1.2, 1.3, 2.3, 2.6, 3.1, 3.3 | Uses a range of strategies to establish a sense of connection and build rapport with clients and co-workers Cooperates with others and contributes to work where joint outcomes are expected and deadlines are to be met |
Get the work done | 1.1, 2.4–2.6, 3.2 | Takes responsibility for planning, sequencing and prioritising tasks and own workload for efficiency and effective outcomes Makes routine decisions and implements standard procedures for routine tasks using formal decision-making processes for more complex and non-routine situations Uses digital systems and technologies to access, store or share information |
Sectors
Personal trustee