Reassessment of an organisation on the death of a linked customer 043-04160030

The death of any customer directly linked to an organisation will generate a Trusts and Companies/Trusts Organisation Assessment (TAC/TOA) work item on the entity's record.

This work item must be checked by a Complex Assessment Officer (CAO) and actioned appropriately.

There will be a separate TAC/TOA work item created for each deceased person linked to an organisation, regardless of whether there is an existing TAC/TOA work item for that organisation.

Are there any current customers (or their partners) linked to the entity?

This excludes customers receiving:

• Age Pension Blind (AGB) but not Rent Assistance (RA)
• Disability Support Pension Blind (DSB) but not Rent Assistance (RA)
• Family Tax Benefit (FTB) only
• Seniors Health Card (SHC) only
• Residential Care Allowance (RCA) – means not disclosed
• Foster Child Health Care Card (FST)
• Carer Allowance (CDA) only

A review is not needed for customers receiving any of the above payments.

• Yes, go to Step 3
• No, go to Step 2

If there are no current customers or current partners of linked customers, we should not be asking for information because it is not required. If a customer or partner involved in the entity claims a new payment, or a current customer becomes involved in the entity, a Mod PT/PC would be required and a new attribution should be made.

If the deceased was the contact person for the entity, end date their details on the OSCD screen so that no further requests for information are sent.

Zero anything linked to the deceased on the TRA and TRLS screens. Zero any distributions on TRD and code as ceased. If there are no distributions recorded, insert a new line and code zero for the deceased person and code as ceased. The date of event to use for the updates is the date of death + 1.

DOC the record of action undertaken and note that further information may be required if another individual or their partner related to the entity makes a claim.

Procedure ends here.

• Yes, search ASIC Connect to check if the Private Company is deregistered. If the Private Company is:
• deregistered, the company must be wound up. Procedure ends here
• not deregistered, go to Step 4
• No, go to Step 4

Note: where there is a surviving partner who is a current customer, do not contact them or make any updates to income or assets during the 16 week review bereavement period, unless the surviving partner makes contact and advises of changes. If requesting further information during the 16 weeks bereavement review period, the appropriate letter to send to the surviving partner is the Q022.

If further information is required to complete the review of the entity, request information from all current linked customers. Details of what information to request and the relevant updates are outlined below.

The deceased may have had multiple roles, see below for details of all roles as required.

If the deceased person was:

• a contact person, go to Step 5
• a controller, go to Step 6
• a genuine investor, go to Step 7
• a non-attributable shareholder or beneficiary only, go to Step 8

Determine and update new contact person on the Organisation Contact Details (OSCD) screen.

Review and update the attribution decision.

The following documents may be required to make a new attribution decision:

• copy of the trust deed and any amendments (for private trusts).
  This will help identify if there is a named successor appointor, or if the new appointor is as per the terms of the will of the deceased
• details of transfer of shares and/or directorship (for private companies)
• a copy of the will of the deceased person

Update the entity record as follows for the deceased controller:

• on the TRA and TRD screens, zero all income and assets attribution percentages and distribution amounts for the deceased controller
• enter the deceased customer's CRN and 'Y' in the Distrb Ceased: field of the Trust/Company Distribution (TRD) screen. If there are no distributions recorded, insert a new line and code zero for the deceased person and code as ceased
• zero any liabilities owing to the deceased on the TRLS screen
• the date of event is the date of death + 1

Update the TRA screen to reflect the new attribution decision. The date of event is either:

• the date of death + 1
• the date the new controller(s) is/are able to receive the interest in the estate. In this instance, attribution should also be coded to the estate from the date of death + 1

The entity income, assets and liabilities will need to be reassessed accordingly (if the new controller is a current customer).

Update TRLS screen:

• if an existing loan formed part of the deceased's estate, code a loan to the estate with a date of event as date of death + 1
• if an existing loan is now owing to another person, code the details as applicable, including the CRN if the person is a current customer. The date of event is the date the person is entitled to receive their interest in the estate

Note: where the estate is not yet finalised, complete the TAC/TOA activity and set a discretion review for the date the estate is expected to be finalised.

Where the genuine investor has a surviving partner who is a current customer (excluding FTB or SHC only or Age Pension (Blind) or DSP (Blind) customers not in receipt of Rent Assistance), or the controller (or their partner) is a current customer, contact the controller to find out whether the investment was repaid to the investor's estate.

If the controller is a current customer, and the investment has been repaid, a reassessment of the entity's assets may be required as these may have changed because of the repayment.

Update the entity's record as follows:

• if the investment has been paid to the estate, update the TRA screen and the entity’s assets and liabilities accordingly
• zero all income, loans and liabilities this customer may have
• enter 'Y' in the Distrb Ceased: field on the TRD screen. If there are no distributions recorded, insert a new line and code zero for the deceased person and code as ceased
• the date of event is the date of death + 1

If the genuine investment now belongs to another person, input their details.
The date of event will be the date the genuine investment was transferred, or was able to be transferred, to that person.

Note: where the estate is not yet finalised, complete the TAC/TOA activity and set a discretion review for the date the estate is expected to be finalised.

Where the minority shareholder or beneficiary only has a surviving partner who is a current customer (excluding FTB or SHC only or Age Pension (Blind) or DSP (Blind) customers not in receipt of Rent Assistance), or the controller (or their partner) is a current customer, check to see if the customer had any loans to the organisation. If so, contact the controller and see if these loans have been/will be repaid.

Update the entity record as follows:

• zero all income, loans and liabilities for the deceased customer
• enter 'Y' in the Distrb Ceased: field on the TRD screen. If there are no distributions recorded, insert a new line and code zero for the deceased person and code as ceased
• the date of event to be used is the date of death + 1

If an existing loan formed part of the deceased's estate, code a loan to the estate with the date of event as date of death + 1.

If an existing loan is now owing to another person, code the details applicable, including the CRN if the person (or their partner) is a current customer. The date of event is the date the person is entitled to receive their interest in the estate.

If the deceased minority shareholder or beneficiary's loan to the entity is repaid and the new controller is a current customer (or their partner), update the entity's income and assets.

Note: where the estate is not yet finalised, complete the TAC/TOA activity and set a discretion review for the date the estate is expected to be finalised.

Where there are interposed organisations and the contact person or controller of one dies, only the organisation directly linked to the customer will have a TAC/TOA activity created. This is the only organisation to review.