Plaintiffs who are receiving a personal injury settlement and do not have financial capacity to manage the money are not required to have their funds managed by the state government public trustee.
Your client, or their litigation guardian, should be made aware that alternatives such as a private trustee company exist, and might better suit for a range of reasons.
There are three main private trustee companies who specialise in providing a service as the substitute decision-maker (the financial manager), being Equity Trustees (who recently acquired AET), Australian Unity and Perpetual.
It’s very much a personal preference as to who your client and their family feel most comfortable with when selecting a financial manager. Some things for your client and their family to consider:
How can the financial manager enhance my wellbeing and lifestyle?
Will I have easy/direct access to my representative?
Will I have, and how often will I have, in-person meetings?
Do I have the option of receiving independent financial advice?
Can the financial manager support me in other related areas, such as Centrelink and the NDIS?
Private trustee companies don’t necessarily cost more, but even when they do, the plaintiff may validly consider them in the mix. The law does not oblige them to select the cheapest provider, however the court will require reasons from the litigation guardian as to why the private manager has been selected. Plaintiffs need only prove that their choice is reasonable. This can be detailed in the appointing affidavits.
In preparation for selecting a trustee and finalising the claim, Aeran can prepare a cost of funds management report. Aeran does not charge a fee for funds management reports, and can usually turn them around in less than 24 hours. We can also talk to families to explain the options.
Contact Aeran to discuss your client’s needs and the type of report required for a settlement conference or court.
Aeran advisers have completed the UNSW Expert Witness Course.