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Evidence Guide: FNSPRT501 - Advise clients on trust structures

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSPRT501 - Advise clients on trust structures

What evidence can you provide to prove your understanding of each of the following citeria?

Determine client needs and advise client on suitable trust structure

  1. 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
  2. Explain to client nature and purpose of trusts and how they are administered, including taxation and legislative requirements
  3. Explain to client types of benefits paid from trust and specific factors that must be considered when investing trust assets
  4. Explain role and responsibilities of trustee in language appropriate to client
  5. Document and present to client trust structure that is suited to client’s needs in accordance with legislative requirements, and organisational policy and procedures
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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain to client nature and purpose of trusts and how they are administered, including taxation and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain to client types of benefits paid from trust and specific factors that must be considered when investing trust assets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain role and responsibilities of trustee in language appropriate to client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document and present to client trust structure that is suited to client’s needs in accordance with legislative requirements, and organisational policy and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Address client concerns

  1. Discuss and clarify any concerns client has about advice and recommendation, and determine how client wishes to proceed
  2. Explain associated fee and cost structures to client and gain formal agreement to proceed
  3. 2.3 Explain process and timeframes for execution and confirm client's understanding
Discuss and clarify any concerns client has about advice and recommendation, and determine how client wishes to proceed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain associated fee and cost structures to client and gain formal agreement to proceed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

2.3 Explain process and timeframes for execution and confirm client's understanding

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare and document trust deed

  1. Prepare trust deed according to client and legislative requirements, and appropriate organisational policy and procedures
  2. Execute settlement deed and take receipt of initial assets
  3. Undertake record keeping and safe storage of trust deed according to organisational and legislative requirements
  4. Confirm all relevant details and information of beneficiaries
Prepare trust deed according to client and legislative requirements, and appropriate organisational policy and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Execute settlement deed and take receipt of initial assets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Undertake record keeping and safe storage of trust deed according to organisational and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Confirm all relevant details and information of beneficiaries

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide ongoing service

  1. Agree on type of reporting service with client
  2. 4.2 Review needs of beneficiaries for both income and capital, and change trust's investment strategy where appropriate
  3. Provide ongoing service and management of trust, as required
Agree on type of reporting service with client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

4.2 Review needs of beneficiaries for both income and capital, and change trust's investment strategy where appropriate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide ongoing service and management of trust, as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine client needs and advise client on suitable trust structures

  1. 1.1 Discuss the client's personal, financial and family circumstances and identify areas of risk to preservation of the client's assets
  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
  3. Discuss and confirm with the client the fees and cost structure for the advice on trust structures and the preparation of trust documentation
  4. 1.4 Identify relevant legislation and organisational policies and procedures for consideration in drafting the client's trust documentation
  5. Seek assistance, advice or other services from internal or external specialist advisers 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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare draft trust documentation

  1. Research relevant strategies, laws and trust structures
  2. Identify and consider the benefits, risks and taxation consequences of each trust structure proposed
  3. Prepare, in accordance with legislative and organisational policy requirements, appropriate draft trust documentation for the client to review and consider
Research relevant strategies, laws and trust structures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Present draft trust documentation to the client

  1. Explain to the client the draft trust documentation, trust structure and trust objectives
  2. Discuss with the client how the trust structure will achieve asset protection for the client
  3. Explain to the client what the client will need to do to finalise and implement the draft trust documentation
  4. 3.4 Seek and consider the client's feedback on the draft trust documentation
Explain to the client the draft trust documentation, trust structure and trust objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Finalise trust documents

  1. 4.1 Document any amendments to the draft trust documentation arising from the client's feedback on the draft trust documentation
  2. Finalise the draft trust documentation and prepare an execution copy of each document
  3. Discuss with the client any changes in the final trust documentation
  4. 4.4 Arrange for the client's due execution of the trust documentation
4.1 Document any amendments to the draft trust documentation arising from the client's feedback on the draft trust documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss with the client any changes in the final trust documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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.