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Where am I now? Lawlink > NSW Trustee and Guardian > Manager's Handbook > Assets
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Assets
Investing
Dealing with real estate
Buying assets other than real estate
Selling assets other than real estate
Insurance
Making gifts and loans
Investing
All investments must be held in the managed person’s name.
When investing a managed person's money, you must comply with the Trustee Act 1925.
Under that Act, you can choose investments suited to the needs of the managed person but must use the care and skill that a "prudent person" would use in managing someone else's financial affairs.
The Act requires that investments be reviewed at least once each year. You must provide a certificate when lodging the annual accounts stating that you have reviewed the performance of the managed person's investments and are satisfied that these meet the requirements of the Act.
The Act allows you to obtain independent investment advice and the Directions and Authorities gives you the authority to do so. NSW Trustee and Guardian will normally require Managers to seek such advice where estates are large or complex. You can charge the cost of obtaining investment advice to the estate of the managed person.
You can ask NSW Trustee and Guardian’s financial planners to prepare a financial plan for the managed person’s estate. Only in extraordinary circumstances will a fee for the preparation of a plan be charged. You should speak with your liaison officer if you would like to make an appointment.
See: Guidelines for Managers Seeking to Invest Managed Person's Funds and Guidelines for Completing Annual Accounts which explain how to lodge an investment proposal.
Dealing with real estate
Managers who are proposing to deal with real estate in any manner other than that already authorised in the Directions and Authorities must submit a proposal addressing issues set out in the real estate guidelines for:
- Purchase
- Sale
- Leasing
- Occupation
- Renovation
These guidelines are available from NSW Trustee and Guardian or on our website at www.lawlink.nsw.gov.au/opc under publications.
Buying assets other than real estate
Unless you have the power under the Directions and Authorities, the NSW Trustee and Guardian must give approval for you to buy a major asset such as a car, or any item of value such as antique furniture or jewellery. To seek approval, you must forward a written proposal to NSW Trustee and Guardian. See the guidelines for the purchase of these types of assets.
Selling assets other than real estate
The sale of major assets may impact on the managed person. The impact may be financial, as in the sale of shares, or on lifestyle, as in the sale of a car, furniture or personal effects.
As well as thinking about how the sale will affect the managed person, you must consider whether the managed person or their family has asked that particular items be kept, or whether the managed person has left particular items in their Will.
To sell a major asset other than real estate, you need to submit a proposal to NSW Trustee and Guardian. See the guidelines which are available for the sale of assets other than real estate.
Insurance
You are required to insure the managed person’s assets for their full insurance value and to take out workers compensation, public liability, personal liability and any other insurance cover that may be required. You may wish to obtain advice from an insurance broker. NSW Trustee and Guardian will require you to provide evidence that appropriate insurance is in place and maintained.
Making gifts and loans
NSW Trustee and Guardian must give prior approval for all gifts. Where the managed person had previously made small gifts, for example for birthdays and Christmas, approval will usually be given. In other cases the Manager will need to demonstrate why they believe such a gift should be made, the effect on the estate and provide the views, if possible, of the managed person and other immediate family members.
You do not have authority to lend the managed person's money under the NSW Trustee and Guardian Act 2009.
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