Interest in an estate 108-04020050

Any share in a deceased estate is disregarded until it is received or is able to be received. For a period of up to 12 months it should generally be accepted that an interest in an estate which has not been distributed is not able to be received. Distribution includes the segregation of the interest into a testamentary trust.

Has the customer already received all of their inheritance?

• Yes,
• The inheritance is an exempt lump sum but the customer must advise details of what they received and have done with the inheritance. For example, cash now held within a bank account, part interest in real estate
• Assess the assets received, including any referral to a Complex Assessment Officer (CAO) for assessment of a testamentary trust, if deprivation may have occurred, or if the inheritance is complex
• Procedure ends here
• No, the extent and nature of the customer’s (and/or their partner’s) interest and the expected date of distribution is to be obtained. Go to Step 2

Documentation may not yet be available or accessible by the customer, an estimate of the amount and expected date of distribution can be accepted from the customer within the first 12 months after death.

Remind the customer of their obligations to notify within 14 days of receipt of their inheritance.

Inclusion of:

• the expected value of the interest may increase the customer’s total assets in excess of the allowable assets limits
• income received or derived from the assets of the estate, or upon investment of the distribution received, may increase the customer’s total income in excess of the allowable income limits

Is the inheritance expected to have an impact under either the asset or income test?

• Yes,
• in Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:
  Service Reason: customer's payment type
  Review Reason: select most appropriate reason
  Due Date: expected date of distribution. If the date of distribution is more than 12 months from the date of death, code the 12 month anniversary date
  Source: INT
  Date of Receipt: today's date
  Notes: 'Expected date of inheritance distribution xx/xx/xxxx. Return to OB 108-04020050 to action.'
  Keywords: RVESTATE
  Workgroup: leave blank
  Position: leave blank
  Transfer to Region: leave blank
• the review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action. Go to Step 4
• No, a review is not needed to check that a customer has complied with their notification requirements. Procedure ends here

At the expected date of distribution, or the 12 month anniversary, contact the customer to see if they have received the inheritance.

If the inheritance is complex ask them to supply a copy of the:

• Will
• Grant of Probate. or
• Inventory of the Estate

The request may need to be directed to the executor or administrator of the estate.

If there is no current will and the deceased has died intestate, the administration of the estate will vary under state law. Enquiries can be made with any administrator appointed or to the relevant state or territory authority responsible for the administration of the estate, for example, State or Public Trustee.

In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:

• Service Reason: customer's payment type
• Review Reason: select most appropriate reason
• Due Date: date for return of documentation
• Source: INT
• Date of Receipt: today's date
• Notes: 'Proof of inheritance distribution requested from <insert customer or relevant authority>. Check response and return to OB 108-04020050 to action.'
• Keywords: RVESTATE
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

Has the customer received all of their inheritance?

• Yes, the customer must advise details of what they received and have done with the inheritance, for example, cash now held in a bank account, part interest in real estate. Assess the assets received, including any referral to a Complex Assessment Officer (CAO) for assessment of a testamentary trust, if deprivation may have occurred, or if the inheritance is complex. Procedure ends here
• No,
• if a period of more than 12 months has passed since death, go to Step 6
• if within 12 months of death, in Customer First, create another manual review on the Review Registration (RVR) screen and complete the fields as follows:
  Service Reason: customer’s payment type
  Review Reason: select most appropriate reason
  Due Date: new expected date of distribution
  Source: INT
  Date of Receipt: today's date
  Notes: 'Expected date of inheritance distribution xx/xx/xxxx. Return to OB 108-04020050 to action.'
  Keywords: RVESTATE
  Workgroup: leave blank
  Position: leave blank
  Transfer to Region: leave blank
• the review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action
• assess the assets that have already been received. Note: if the customer has not yet received any distribution, no income or assets are to be assessed in the first 12 months

• If a period of more than 12 months has passed since death and distribution of the estate has not yet occurred, consideration as to the availability of the assets and cause of the delay is needed. The executor or administrator of the estate should be asked about the reason for the delay
• Where the delay is reasonable and beyond the customer’s control, the estate may continue to be disregarded, for example, it’s being contested by another beneficiary. In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:
• Service Reason: customer’s payment type
• Review Reason: select most appropriate reason
• Due Date: expected date of distribution
• Source: INT
• Date of Receipt: today’s date
• Notes: 'Expected date of inheritance distribution delayed. Check for distribution and return to OB 108-04020050 to action.'
• Keywords: RVESTATE
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank
• The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action
• If the customer has contributed to the delay, the interest is regarded as being available. For example, the customer is the executor and there are no valid reasons preventing distribution.
• If the customer is the executor and the sole beneficiary of the estate, assess the assets as theirs
• Where the customer is not the executor, or the executor has a discretionary power under the will in relation to the distribution of the estate among multiple beneficiaries, the case is to be referred to a Complex Assessment Officer (CAO) for assessment as a testamentary trust