Protective and statutory trusts for persons unable to handle their own affairs 043-04110050

For single investments held in trust, including children’s bank accounts, see Trusts.

For details about:

• the documents CAOs need to assess a protective trust, see Documents required to assess a private trust
• attribution of income and assets from controlled private companies and controlled private trusts, see Attribution for private trusts and private companies

Follow other relevant Operational Blueprint processes to continue to assess protective trusts.

Statutory trusts

Where a customer, authorised representative or authority from a helping profession, notifies of customer involvement in a court ordered statutory trust, they do not generally need to complete a MOD PT.

For a new court ordered statutory trust, they must give:

• documents that support that the trust meets the criteria of a court ordered statutory trust. For example, a letter from the Senior Master’s Office or copy of court order
• source of the funds
• contact details of a trust contact person, including postal address and contact phone number
• date funds first received
• amount of funds first received
• current asset balance
• current rate of investment return or details of gross income earned
• any significant events since funds first received

For reviews of existing court ordered statutory trusts, they must give:

• current asset balance
• current rate of investment return or details of gross income earned
• any significant changes to the trust income and assets

Have they given all the required information to add or update the trust?

• Yes, go to Step 2
• No, see Complex Assessment Officers (CAO) for the process to follow when unable to complete the assessment

If notification has been provided of involvement in:

• a new court ordered statutory trust, see Table 2
• an existing court ordered statutory trust, see Table 3

Add a new Trust record to the TAC System.

Name of trust: customer family name, first name, organisation code, ATF, case number (Ref: xxxxx). For example, Smith John SMO ATF (Ref:12345).

See Searching for and indexing private trusts and companies.

Go to Step 2

When CAOs record a new entity, they must set a program review on the organisation’s record.

The intention of the TRF/TNR activity is to notify Service Profiling that the review is due. CAOs must use Action: 'REA' so that it remains in the Service Profiling cycle.

Go to the Activity Registration (AYR) screen and complete the fields as follows:

• Service Reason: TRF
• Source: INT
• Activity Type: TNR
• Date of Receipt: today's date
• Review Reason: TAN (Trust & Co Annual Review)
• Resubmit Date: appropriate review date
• Action: REA (Reassessment of Benefit). Do not use FMI
• Action Date: same as Resubmit date
• Keywords: leave blank
• Proceed with Activity?: N
• Transfer to Region: leave blank
• Notes: leave blank

Do not select the review once it is coded. The review must remain on the Future Activity List (FAL) screen for it to run each year.

Go to Step 3

Navigate to the Trust/Company Task Selector (TRTS) screen and select the following screens to start coding.

T&C Miscellaneous Details (TRMD)

On the TRMD screen code:

• Event Date: the date the funds were received
• ITR Financial Year: xxxx/xxxx
• Event Date: the date the funds were received (only use if Estimate Applied)
• Type of Organisation: DIS
• Main Business Activity: FIS

For more details, see Coding the T&C Miscellaneous Details (TRMD) screen.

Attribution

Code the attribution details to attribute 100% of the Income and Assets to the customer on the Trust/Company Attribution (TRA) screen. For more details, see Coding the Trust/Company Attribution (TRA) screen.

Income

On the Trust /Company Income/Deduction (TRID) screen code:

• Event Date: the date the funds were received
• Accounting Profit/Loss: $xx
• Action: ‘I’ Insert new page

Note: repeat coding to record any significant changes since the date funds were received.

The income assessable from a statutory trust is calculated by multiplying the balance of money held by the most recent rate of return. In some cases, gross taxable income is provided by the administrator of the funds. For example, the Senior Master’s Office (SMO) in Victoria. If the trust has not been in place for a full financial year, the income must be annualised. See Resources for details about SMO cases. For more details, see Recording attribution income.

Assets

On the Other Assets Summary (OASS) screen:

• Select the Asset Type(s) to be added
• Code the Asset amount(s) at relevant dates of event:
• Date funds first received
• Date of any significant change since funds received

For more details, see Other assets owned by an entity.

Real estate

For the assessment and coding of real estate owned by the trust, see Real estate owned by a private trust or private company.

Once all coding is complete, finalise the activity on the Activity Results (AR) screen.

Go to Step 4

Create a CAO Assessment DOC on the Trust Record.

For Senior Master’s Office assessments use Fast Note - select Auto text, use Complex Assessment > CAO Use Only > Senior Master’s Office New Case.

For all other Trust assessments use Fast Note - select Auto text, use Complex Assessment > CAO Use Only > Trust Trading Assessment.

If the assessment will result in the cancellation or a reduction in the customer’s payment, the CAO must make genuine attempts to contact the customer or their nominee. See Advising verbally on an unfavourable decision.

Procedure ends here.

The SMO in Victoria holds funds awarded to customers by Order of the Court.

Each year the SMO sends a listing of all of their customers who are in receipt of an income support payment for reassessments by CAOs.

See Resources for details about SMO cases.

If there is a started annual review activity on the:

• Future Activity List (FAL) screen, go to Step 3
• Activity List (AL) screen, go to Step 4

If there is no started annual review activity, create an Annual Review Activity on the FAL screen. Go to the Activity Registration (AYR) screen and complete the fields as follows:

• Service Reason: TRF
• Source: INT
• Activity Type: TRV
• Date of Receipt: today's date
• Review Reason: TAN (Trust & Co Annual Review)
• Resubmit Date: leave blank
• Action: FMI (Form Issue)
• Action Date: today
• Keywords: leave blank
• Proceed with Activity?: N
• Transfer to Region: leave blank
• Notes: leave blank

Go to Step 3

Select the review from the FAL screen:

• Source: INT
• Date of Receipt: date change of circumstances notified/received

The activity will now be on the AL screen.

Go to Step 4

Select the activity from the AL screen and navigate to the Trust/Company Task Selector (TRTS) screen.

Select the following screens to start the review.

T&C Miscellaneous Details (TRMD)

On the TRMD screen code:

• Event Date: the date of receipt of the information
• ITR Financial Year: xxxx/xxxx

For more details, see Coding the T&C Miscellaneous Details (TRMD) screen.

Attribution

Confirm the customer is attributed with 100% of the Income and Assets on the Trust/Company Attribution (TRA) screen. No change should be required on this screen.

Income

On the Trust /Company Income/Deduction (TRID) screen code:

• Event Date: the date of receipt of information or the date circumstances changed if there is a notifiable change of circumstances
• Accounting Profit/Loss: $xx
• Action: ‘I’ Insert new page

The income assessable from a statutory trust is calculated by multiplying the balance of money held by the most recent rate of return. In some cases, gross taxable income is provided by the administrator of the funds. For example, the Senior Master’s Office in Victoria. If the trust has not been in place for a full financial year, the income must be annualised. See Resources for information on SMO cases. For more details, see Recording attribution income.

Assets

On the Other Assets Summary (OASS) screen:

• Select the Asset Type(s) to be added
• Code the Asset amount(s) using the date of receipt as date of event ort the date the circumstances changed if there is a notifiable change of circumstances

For more details, see Other assets owned by an entity.

Real estate

For the assessment and coding of real estate owned by the trust, see Real estate owned by a private trust or private company.

Once all coding is complete, finalise the activity on the Activity Results (AR) screen.

Go to Step 5

Create a CAO Assessment DOC on the Trust Record.

For Senior Master’s Office assessments use Fast Note - select Auto text, use Complex Assessment > CAO Use Only > Senior Master’s Office Annual Review.

For all other Trust assessments use Fast Note - select Auto text, use Complex Assessment > CAO Use Only > Trust Trading Assessment.

If the assessment will result in the cancellation or a reduction in the customer’s payment, the CAO must make genuine attempts to contact the customer or their nominee. See Advising verbally on an unfavourable decision.

Procedure ends here.