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Where am I now? Lawlink > NSW Trustee and Guardian > Private Management Frequently asked questions
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FROM 1 JULY THE OFFICE OF THE PROTECTIVE COMMISSIONER WILL BE KNOWN AS THE NEW SOUTH WALES TRUSTEE AND GUARDIAN
Private Management
FREQUENTLY ASKED QUESTIONS
What can I spend money on?
What is a conflict of interest?
What happens to my power of attorney now that I'm a Manager?
What needs to be included in the Annual Accounts?
What happens when the managed person dies?
Why does the NSW Trustee and Guardian require security?
Why does the NSW Trsutee and Guardian charge fees?
What are the proposals I have to send you about?
Can I invest money through the NSWTG?
What fees are charged when funds are invested through NSWTG?
Is there any fee for NSWTG Financial Planners to develop a financial plan or statement of advice for a managed person?
What do I need to know about Accommodation Bonds and Fees for aged care facilities?
What can I spend money on?
The Directions and Authorities document, which the NSW Trustee and Guardian draws up after you have been appointed as a manager, gives you the power to spend money for the managed person on:
· living costs such as food, clothing, housing and medicine
· costs connected with the managed person's property such as rates, taxes, repairs, maintenance and insurance
· items which will enhance the managed person's lifestyle – for example, holidays
· fees for professional services such as accountants and solicitors.
What is a conflict of interest?
A conflict of interest occurs when a Manager wants to act in a way that is to their benefit, but not necessarily to the benefit of the managed person – for example, wanting to invest some of the managed person's money in a business which the manager owns. Such conflicts make impartial decision making extremely difficult.
If you believe that a conflict of interest may arise, discuss the situation as soon as possible with your Liaison Officer.
For more details go to the Manager's Handbook
What happens to my power of attorney now that I'm a Manager?
Your power of attorney is suspended for as long as the financial management order appointing you as Manager is in force.
What needs to be included in the Annual Accounts?
There are three formats for accounts – simple, intermediate and full. The format you need to follow depends on the complexity of the estate you manage. Your liaison officer will tell you what format you need to follow. Regardless of the format, you must sign a statutory declaration saying that the accounts as presented by you are correct.
For Simple Accounts, you must complete:
. a two-page report. All you need do is answer a series of questions by ticking the appropriate box and provide brief comments where asked.
For Intermediate Accounts, you must complete a:
· Manager's Report to the NSW Trustee and Guardian
· Statement of Accounts
· Statement of Receipts – Intermediate Accounts
· Statement of Payments – Intermediate Accounts
· Statement of Assets and Liabilities.
For Full Accounts, you must complete a:
· Manager's Report to the NSW Trustee and Guardian
· Statement of Accounts
· Statement of Receipts
· Statement of Payments
· Statement of Assets and Liabilities
· Report on managed funds
· Report on shares and investments.
Accounting forms and guidelines on how to complete the forms are available from the NSW Trustee and Guardian. You can also view and download the forms and guidelines from our accounts page on this site.
What happens when the managed person dies?
Your role as a Manager ends when the managed person dies. When this happens, you must send the NSW Trustee and Guardian a certified copy of the death certificate and the final accounts.
Why does the NSW Trustee and Guardian require security?
The NSW Trustee and Guardian may ask Managers to lodge various forms of security, such as the title deeds to property owned by the managed person, in order to protect the managed person's assets. The level of security required is decided on an individual basis.
For more details go to the Manager's Handbook
Why does the NSW Trustee and Guardian charge fees?
The NSW Trustee and Guardian has a legal right under the NSW Trustee and Guardian Act 2009 and the NSW Trustee and Guardian Regulations 2008 to charge fees. It does so to meet a portion of the costs incurred in overseeing the management of the managed person's estate.
The main fees are as follows:
· Income Fee: 4 per cent per annum of the net annual income of the managed person
· Investment Fee: 0.5 per cent per annum of the capital value of the managed person's investment in an NSW Trustee and Guardian investment fund
· Accounts Fee: These fees reflect the complexity of examination of the accounts.
$100 for simple accounts
$200 for medium accounts
$300 for complex accounts
· Financial Plan Fee: Under normal circumstances there is no fee for the development of a financial plan for a managed person. There may be a fee levied in the event of very complex matters however this would be discussed and agreed with the Manager prior to the plan being prepared.
What are the proposals I have to send you about?
As a Manager, you have set powers under the Directions and Authorities. Before spending money on something not authorised in the document or acting in a way not authorised, you must send the NSW Trustee and Guardian a proposal and recommendation about your plans. The NSW Trustee and Guardian then considers your proposal and may authorise it.
This process protects the interests of the managed person and ensures that they have sufficient funds to meet ongoing needs. A proposal and recommendation is required for such matters as buying, selling and leasing real estate for the managed person, investing their funds and allowing a family member of the managed person to live in their home rent-free.
The NSW Trustee and Guardian has guidelines on how to prepare proposals for specific additional powers as a Manager.
Can I invest money through the NSWTG?
Yes, Managers can invest funds through the NSWTG. NSWTG’s in house financial planners can work with the Manager to prepare a financial plan suited to the individual needs of the managed person.
For more information go to our financial planning and investment page for managers.
What fees are charged when funds are invested through NSWT&G?
Any investment in funds by commercial fund managers involves fees which are usually referred to as Management Expense Ratio or MER. They generally vary between 1%pa and 3%pa or more depending on the type of fund. At NSWT&G they are called investment fees and are only 0.5% pa no matter which fund is used.
Is there any fee for NSWTG Financial Planners to develop a financial plan or statement of advice for a managed person?
Under normal circumstances there is no fee for the development of a financial plan for a managed person. There may be a fee levied in the event of very complex matters however this would be discussed and agreed with the manager prior to the plan being prepared.
What do I need to know about Accommodation Bonds and Fees for aged care facilities?
Accommodation bonds and accommodation fees for aged care facilities are a complicated and often confusing financial area.
Here are some of the questions you need to ask and issues which may come up when you are looking into aged care.
Do I sell the house to pay for care?
A decision either way on selling the house can make a difference of tens of thousands of dollars to the protected person. The house may or may not be exempt from the Assets Test.
Sometimes it is better to pay the accommodation bond in full, or it may be better to pay only part.
Depending on the individual circumstances a house may be:
- assessable for Centrelink and Aged Care Fees
- exempt indefinitely
- or only exempt for a set period.
Sale of the house may mean the loss of the pension and an increase in accommodation fees whereas keeping the house may mean keeping the pension and lower accommodation fees.
What do I need to know to make the right decision?
Each individual’s situation is different but the key factors are:
- When did the managed person enter the aged care facility?
- What is the classification of the aged care facility ,eg high care?
- What are the managed persons assets and income?
An example: paying part of the bond and interest on the reminder of the bond may mean the house and rent are exempt.
Help, who can I talk to about my situation?
Everyone’s situation is different so the best way to plan and have all your questions answered is to talk to a Financial Service Information Officer (FISO) at Centrelink. You can make an appointment for a confidential interview with a FISO. They can outline your options.
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