Public trustee guide for financial administrators

PUBLIC TRUSTEE GUIDE FOR FINANCIAL ADMINISTRATORS

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Foreword
The Guardianship and Administration Act 1993 provides the legislative framework for the support and protection of persons who are not capable of making decisions in their own best interests. Administrators appointed under this Act play an important role in protecting people whose decision making capabilities are significantly impaired from potential neglect, abuse and/or exploitation, and also play a crucial role in ensuring that the quality of life of the protected person is maintained.
The South Australian Civil and Administrative Tribunal (SACAT) appoints an administrator to make decisions in the best interests of the protected person and to ensure that their financial affairs are managed appropriately. Administrators, as part of their role, must be accountable and transparent in both decision-making and financial record-keeping in relation to the protected person.
Section 44 of the Guardianship and Administration Act 1993 requires an administrator to report to Public Trustee and SACAT annually regarding the receipts and payments and the assets and liabilities of the protected person’s estate.
Public Trustee and SACAT recognise the ongoing need for a reference manual to enable administrators to understand their role and to carry out their responsibilities on a day-to-day basis with clarity and confidence. This revised edition of the South Australian Financial Administrators Guide has been produced by Public Trustee, with the support of SACAT, to provide you, the administrator, with information to assist you in carrying out your obligations.
We hope you find this guide a valuable source of information and assistance.

Public Trustee

1. INTRODUCTION 5
2. ROLES AND RESPONSIBILITIES 6
2.1. The Administrator 6

2.1.1. What do you have to do as an administrator? 7

2.1.2. What decisions can’t you make? 7
2.2. South Australian Civil and Administrative Tribunal (SACAT) 7
2.3. Public Trustee 8

2.3.1. How can Public Trustee help you? 9

2.3.2. What fees are payable to Public Trustee? 9

2.3.3. What do you do if you have questions or concerns about Public Trustee? 9

2.4. Ombudsman 9
Website: www.ombudsman.sa.gov.au 9
3. GETTING STARTED 10
3.1. SACAT has appointed you as an administrator – now what? 10

3.1.1. Read the administration order carefully 10

3.1.2. Develop a financial management strategy 10

3.1.3. Safeguard any assets 10

3.1.4. Read the Guardianship and Administration Act 1993 10

3.1.5. Read this guide and look at information available on line 10

3.1.6. Meet Public Trustee Staff 10

3.1.7. Tell relevant people and organisations that you have been appointed 10

3.1.8. Set up a ‘working account’ 11

3.1.9. Start managing documentation 11

3.1.10. Find out what is in the protected person’s Will 11
4. CONSULTING OTHERS 12
4.1. Working with a guardian 12
4.2. Should you consult with anyone else about decisions? 12
5. APPROPRIATE SPENDING AND CONTROL OF MONEY 13
5.1. Can you let the protected person have control of some of their own money? 13
5.2. Can you allow others to control some of the protected person’s money? 13
5.3. What can you spend money on? 13
5.4. Can you hire a paid carer? 14
5.5. How can you determine what the protected person’s wants and needs are? 15
5.6. Can you give a financial gift to someone else on behalf of the protected person? 16
5.7. Can you make donations to charity? 16
5.8. Can you pay someone else to do the work? 17
5.9. Taxation 17
6. PERSONAL POSSESSIONS 18
7. INCOME 19
7.1. Centrelink 19
8. INVESTING FUNDS 20
8.1. Where can you invest the protected person’s money? 20
9. WORKING WITH LEGAL ISSUES 22

9.1. What if the protected person was running a business? 22
9.2. What if the person has jointly owned property 22
9.3. Can you conduct court cases for the protected person? 23
9.4. Are there legal proceedings where you cannot represent the protected person? 23
9.5. How do you sign documents? 23
9.6. Can the protected person’s Will be changed? 24
9.7. What is testamentary capacity? 24
9.8. What happens when the protected person dies? 24
9.9. What if the protected person signs a contract to sell or give away property? 25
9.10. What if the protected person is a trustee? 25
10. ACCOMMODATION OPTIONS 26
10.1. Living in Own Home 26
10.2. Public Housing 26
10.3. Boarding Houses 27
10.4. Community Housing 27
10.5. Supported Residential Facilities 27
10.6. Retirement Villages 27
10.7. Residential Aged Care 28
10.8. What should you do with the protected person’s house? 29
10.9. Selling Real Estate 29
10.10. Purchase of Real Estate 30
10.11. Discharge of mortgage 32
11. THE IMPORTANCE OF BEING AN ADMINISTRATOR 33
11.1. Are administrators paid? 33
11.2. What are conflicts of interest? 33
11.3. Can an administration order be revoked? 33
11.4. Does the administration apply outside South Australia? 34
11.5. Changing administrators 34
12. FINANCIAL RECORDING AND REPORTING 36
12.1. Does an administrator have to provide an annual statement of accounts? 36
12.2. What is the Public Trustee’s responsibility to SACAT? 36
12.3. What reports and documents do I need to provide? 37
12.4. Where do I get the templates for the reports? 37
12.5. How do I complete the templates? 37
12.6. Statement of receipts and payments 38
12.7. Statutory Declaration 39
12.8. Assets and Liabilities 39
12.9. How should documents be lodged? 41
1. INTRODUCTION
The role of administrator is a very important responsibility.
As an administrator you are required to take care of the financial matters of the protected person in a way that is consistent with and promotes their proper care and protection. It can be difficult and confronting for a person when the control over their financial affairs is removed from them. They must be able to have faith in you, as the administrator of their financial matters, that you will be conscientious in your role and that you will maintain their best interests.
This guide has been developed to assist you as the administrator. It provides important information about your role and responsibilities, and the resources available to assist you.