FNSPRT501
Advise clients on trust structures


Application

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.


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. 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 Performance

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.


Evidence of Knowledge

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 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 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.


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

1.4, 2.1

Critically analyses complex documentation from a variety of sources and consolidates information relating to specific criteria to determine requirements

Writing

2.3, 4.1

Accurately records information and prepares correspondence and documentation using clear language and organisational formats and protocols

Records outcomes of discussions and makes changes to policy documentation using industry relevant terminology

Oral Communication

1.1–1.3, 3.1–3.4, 4.3

Uses active listening, questioning and reading of paralinguistic signals to clarify information and confirm understanding

Clearly explains detailed information using language, tone and pace appropriate to the audience

Numeracy

1.1–1.3, 2.2

Uses highly developed numeracy skills to interpret complex financial information and produce detailed financial strategies

Navigate the world of work

1.3, 1.4, 2.3, 4.4

Takes full responsibility for following policies, procedures and legislative requirements and identifies organisational implications of new legislation or regulation

Interact with others

1.1–1.3, 1.5, 3.1–3.4, 4.1, 4.3

Implements strategies for a diverse range of colleagues and clients to build rapport and foster strong relationships

Recognises the diversity in people and manages this diversity to improve workplace relations and practices

Manages conflict through the recognition of contributing factors and by implementing strategies to resolve conflict

Get the work done

1.1, 1.2, 2.1–2.3, 3.4, 4.2, 4.4

Accepts responsibility for planning and sequencing complex tasks and workload negotiating key aspects with others and taking into account capabilities, efficiencies and effectiveness

Makes critical decisions quickly and intuitively in complex situations taking into consideration a range of variables including the outcomes of previous decisions

Uses digital systems and technologies to enter, store or access information


Sectors

Personal trustee