Guide for private financial managers

As a private financial manager, you're responsible for managing the financial and legal affairs of someone who is not able to make decisions on their own. Use our guide to get started.

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About private financial managers

A financial management order is issued by a The Supreme Court of NSW or The Guardianship Division of the NSW Civil and Administrative Tribunal (NCAT) to appoint someone to make financial and legal decisions on behalf of a person who lacks decision-making capacity. This could be a:

Private financial manager – a family member, friend or Trustee company (more than one person can be appointed to make decisions together) or

NSW Trustee and Guardian –if no family member or friend is willing or able to take on the role of private financial manager, then the court or tribunal will appoint us to manage all, or part, of the person’s financial and legal affairs.

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 don't need any formal qualifications or experience to become someone’s private financial manager, however, you must be:

at least 18 years of age
prepared to always act in the best interests of the person with the financial management order
prepared to make decisions to meet their needs
prepared to consider their views and chosen lifestyle prior to their loss of capacity
prepared to declare any possible conflict of interest
able to avoid making decisions that could compromise your ability to plan in the person’s best interests
prepared to keep close contact with the person and consult them, where possible, about decisions
willing and able to keep records of all income and expenditure for the person and provide annual accounts to NSW Trustee and Guardian.

You will not be appointed as a private financial manager if you do not want to take on the role.

How to get started

If you've been appointed by a court or tribunal to be a private financial manager, you can use our step-by-step guide to help you get started in your role.

Receive the Directions and Authorities document

We issue you with a document called ‘Directions and Authorities’ that:

proves your authority to access the person’s financial details and records
proves your authority to make financial decisions on behalf of the person
outlines your powers such as receiving their income and paying their day-to-day expenses
details specific financial actions you will manage, such as:
- living costs like food, clothing, housing and medicine
- property costs such as rates, taxes, repairs, maintenance and insurance
- items enhancing the person's lifestyle, such as holidays, regular outings, books
- fees for professional services, such as accountants and solicitors
outlines the details of reporting you need to provide to us each year.

Complete the private financial manager’s plan

You will need to complete the private financial manager’s plan form. This is to be completed once and you'll need to outline a summary of the person’s finances including a forecast of their income and expenses for the year.

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:

banks, insurance companies, super funds and other financial institutions
government departments such as Centrelink, Department of Veterans’ Affairs, Australian Taxation Office (if tax returns are to be lodged) and Revenue NSW (if land tax is applicable)
professional advisers such as solicitors and accountants
organised accommodations if applicable, for example a nursing home
debtors and creditors, for example, local council, utility providers, Roads and Maritime Services
investment companies (including share registries).

Complete yearly accounts

You will need to complete the private manager accounts form. This is to be completed yearly and you'll need to outline the managed person’s finances for the past year and provide any supporting documentation.

Manage fees

Fees are charged once annual accounts have been reviewed. You will be sent an invoice. Find out more about the fees we charge for private financial management.

Complete your forms

While acting as a private financial manager you may need to complete certain forms, these may include:

private manager's plan form - complete this form when you are first appointed
change in estate form - complete this form when something changes
private manager remuneration form - complete this form so you can be paid
private manager account form - complete this form yearly.

Support for private financial managers

You will be directed and supported by NSW Trustee and 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.

We’re here to help you support the person whose financial affairs you are managing. When you're appointed as a private financial manager, we will send you a welcome pack, which includes the following induction information, documents and resources:

Induction – we will have a phone or video call with you to take you through the first steps
Private Financial Manager Handbook – a guide to your role and what is expected of you
Directions and Authorities – the legal document that outlines your decision-making powers, including your authority to manage the person’s income and pay day-to-day expenses, plus a list of directions from us
Private Financial Manager Plan form – a form for you to complete with the person’s finances, including forecast income and expenditure.

What NSW Trustee and Guardian is responsible for

We cannot make financial decisions for you, but we are responsible for:

issuing the Directions and Authorities to give you authority to manage the person’s financial affairs.
helping you in your role and ensuring you perform your duties as required
authorising implementation of the Private Financial Manager’s Plan
reviewing and checking the person’s financial accounts
seeking reports from an independent professional about the person’s needs, where required
approving the release of funds to meet the person’s needs
authorising the sale or purchase of property, and decisions about major assets that you make for the person.

Common questions

What happens when the person with a financial management order dies?

Your role as private financial manager ends when the person passes away.

Your final duties are to:

advise the Executor of their Will (if they have one) or next-of-kin (if they don’t) that the person has passed away
provide all financial documents to the person’s Executor or administrator
provide the Executor or administrator with a record of the person’s financial accounts, including assets, income, expenditure and bills incurred
send details to us of the Executor, administrator or solicitor applying for probate or administration
advise the Executor or administrator that NSW Trustee and 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.

If they have a Will

You'll need to review the person’s Will as it may include 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.

Remember that a Will is confidential and should not be disclosed to other people, except NSW Trustee and Guardian, as we require a copy to review financial proposals you make.

Can I make gifts or donations on behalf of a person with a financial management order?

NSW Trustee and 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:

a reason for the gift
the impact on the person’s finances
the views (if possible) of the person and their immediate family members
other information that we may request.

Can I lend money on behalf of a 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, 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 dies?

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'm 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.