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Where am I now? Lawlink > NSW Trustee and Guardian > Manager's Handbook > General Issues
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General Issues
Conflicts of interest
Wills
What can I spend money on?
Authorised spending
Other spending
Advancing money
Giving the managed person some financial control
Conflicts of interest
You may sometimes find yourself in a situation where your personal and financial interests are in conflict with the interests of the person whose financial affairs you manage. A conflict of interest is any action that sees a Manager’s interest being similar or at odds to those of a managed person. For example, a conflict of interest will occur when the Manager:
- wants to borrow money from the managed person's estate
- proposes that either they or a close relative or friend moves into the managed person's house
- proposes that the managed person invest money in a company or business in which the Manager has an interest
- seeks to gain a greater interest in a deceased estate and in so doing adversely affects the managed person’s rights or entitlements.
It is important to recognise when a conflict of interest arises and where you will have difficulty in making impartial decisions as a Manager. Being in such a situation does not mean you have done anything wrong. Should you believe that you have a conflict of interest, contact your liaison officer for advice as soon as possible.
Wills
You need to read the managed person’s Will because some of its terms may affect the decisions you make about the managed person's estate. For example, if the managed person were leaving a gift of real estate in their Will, you would only sell the property when the proceeds were essential to their ongoing care.
As Wills are confidential documents the contents should not be disclosed to other people.
You may be requested to send a copy of the Will to NSW Trustee and Guardian.
What can I spend money on?
Authorised spending
The Directions and Authorities gives you the power to meet a range of expenses on behalf of the managed person. Such expenses include:
- general living costs such as accommodation, care and medical expenses
- other costs associated with the managed person's property, for example: rates, taxes, insurance, repairs, electricity, gas and telephone
- any items that will improve the managed person's life, for example, a new wheelchair. You can spend reasonable amounts on these items, taking into account the managed person's financial circumstances
- fees for lawyers, accountants and other professionals.
Other spending
You require the approval of the NSW Trustee and Guardian to cover expenses other than those outlined previously. Some examples include:
- paying for reasonable and affordable costs of the people who may rely on the income of the managed person such as their spouse, partner or children and who the managed person was supporting or helping to support and is responsible for continuing to do so
- donations to charity - if the managed person had regularly made donations, it may be reasonable to continue doing so
- proposed expenditure which may not be included in the Directions and Authorities such as buying a car or buying real estate.
When thinking about spending of this nature, you must, before seeking approval, consider whether enough money will be left to meet the managed person's day-to-day, long-term and special needs.
Advancing money
As Manager, you can decide for the sake of convenience to advance some of the managed person's money to an organisation or a third party. For example, you can advance money to the aged care facility or group home where the managed person is living. Or you can pay the managed person an allowance through a carer or family member if they are living at home.
Before advancing money from the managed person's estate, contact your liaison officer who will be able to organise the appropriate authority for you.
After making the advance, you will need to monitor the situation to make sure that the money is being used to meet the managed person's needs.
Giving the managed person some financial control
- It is consistent with the principles of the NSW Trustee and Guardian Act 2009 – which are covered earlier in this handbook – to allow the managed person, in appropriate circumstances to control some of their own money. Allowing them a measure of control will enhance their independence.
While there is a risk that the managed person may spend some money unwisely, you can minimise the risk through informal support and by helping them to develop money management skills.
Sometimes a financial management order from the Guardianship Tribunal will allow the managed person to manage an asset or some income themselves. If you think that the managed person should control some of their money, but the financial management order does not permit this, you will have to get the approval of the NSW Trustee and Guardian.
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