Information for private financial managers
As a private financial manager, you are responsible for managing the financial and legal affairs of someone who is not able to make decisions on their own. This is a position of great trust and responsibility.
How do I get started in my role as a private financial manager?
There are six key steps to getting started in your role.
You can also download the Private Financial Manager handbook for more information.
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STEP 1
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Receive the financial management order The court or tribunal will provide you with a formal financial management order to legally appoint you as the person’s private financial manager. |
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STEP 2
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Receive the Directions and Authorities document We issue you a document called ‘Directions and Authorities’ that:
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STEP 3
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Complete the private financial manager’s plan You will be sent a private financial manager’s plan form. This is to be completed once. Please outline a summary of the person’s finances including a forecast of their income and expenses for the year. |
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STEP 4
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Inform relevant people To provide you with access to the person’s accounts, organisations require a copy of the financial management order and Directions and Authorities. These organisations may include:
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| STEP 5 |
Complete yearly accounts You will be sent a private manager accounts form. This is to be completed yearly. Please outline the managed person’s finances for the past year and provide any supporting documentation. |
| STEP 6 |
Fees Fees are charged once annual accounts have been reviewed. You will be sent an invoice. More information about the fees we charge can be found in the Private Financial Manager handbook. |
Who do I report into as a private financial manager?
You will be directed and supported by NSW Trustee & Guardian. We provide the authorisations that you need to manage the person’s financial affairs. We may also appoint an independent visitor to visit them and report on their needs, abilities and circumstances.
Who can become a private financial manager?
A private financial manager is usually a family member or friend, other individual (for example, solicitor or accountant), or a trustee company.
You do not need any formal qualifications or experience to become someone’s private financial manager, however, you must be:
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at least 18 years of age
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prepared to always act in the best interests of the person with the financial management order
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prepared to make decisions to meet their needs
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prepared to consider their views and chosen lifestyle prior to their loss of capacity
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prepared to declare any possible conflict of interest
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able to avoid making decisions that could compromise your ability to plan in the person’s best interests
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prepared to keep close contact with the person and consult them, where possible, about decisions
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willing and able to keep records of all income and expenditure for the person and provide annual accounts to NSW Trustee & Guardian.
How is a private financial manager appointed?
A private financial manager is appointed through a financial management order by:
You will not be appointed as a private financial manager if you do not want to take on the role.
Frequently asked questions
What happens when the person with a financial management order passes away?
Your role as private financial manager ends when the person passes away.
Your final duties are to:
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advise the Executor of their Will (if they have one) or next-of-kin (if they don’t) that the person has passed away
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provide all financial documents to the person’s Executor or administrator
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provide the Executor or administrator with a record of the person’s financial accounts, including assets, income, expenditure and bills incurred
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send details to us of the Executor, administrator or solicitor applying for probate or administration
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advise the Executor or administrator that NSW Trustee & Guardian will be making a claim from the person's estate for any outstanding fees.
After payment of any outstanding fees, we release any funds or documents to the Executor or administrator.
The Australian Death Notification Service allows you to notify multiple organisations online that someone has died so their accounts can be closed or transferred.
What happens if the person with a financial management order has a Will?
Please review the person’s Will as it may outline wishes that affect decisions you will make.
For example, if the Will leaves a gift of real estate, you would only sell the property if the proceeds were essential to their ongoing care.
Please remember that a Will is confidential and should not be disclosed to other people, except NSW Trustee & Guardian as we require a copy to review financial proposals you make.
Am I allowed to make gifts or donations on behalf of the person with a financial management order?
NSW Trustee & Guardian must give prior approval for all gifts or donations that you make on the person’s behalf.
If they previously made small gifts, such as for birthdays, approval is usually given.
For larger gifts, you will need to provide us with the following information:
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a reason for the gift
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the impact on the person’s finances
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the views (if possible) of the person and their immediate family members
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other information that we may request.
Am I allowed to lend money on behalf of the person with a financial management order?
No, you do not have authority to lend their money to any person or organisation.
Can the Directions and Authorities be changed?
Yes. Directions and Authorities can be changed. If you require authorisation to do something that is not detailed in the Directions and Authorities document, please contact your Client Service Team for advice and approval.
What happens if the financial management order has a review or expiry date?
If the financial management order has a review or expiry date, the Directions and Authorities document will include this date and the order may need to be renewed. If this happens, you will receive new Directions and Authorities.
What happens if a joint private financial manager passes away?
If there is more than one private financial manager appointed and they pass away or cease their role for any reason, you as the remaining manager generally take on full responsibility for managing the person’s finances.
What happens if I am unable to pay fees?
If a private manager is unable to pay fees, a request for fees to be waived can be made in writing. You will need to demonstrate financial hardship.