Estate Planning- How to help your client Presented by Michael Perkins TEP

1. Estate Planning- How to help your client Presented by Michael Perkins TEP

2. Disclaimer The information contained in this presentation is intended as general information only and has been prepared without taking into account the needs, objectives or financial information of any particular person. Prior to making any decision, you should assess whether the information is appropriate to your client’s particular needs, objectives and financial circumstances. While reasonable care has been taken in the preparation of this information, subsequent changes in circumstances (including legislative change) may occur at any time and may impact the accuracy of this information.

3. Understanding the Importance of Estate Planning • Estate planning is more than having a Will and an enduring power of attorney • Estate planning is an essential component of a financial plan

4. Understanding the Importance of Estate Planning(contd) Wealth Accumulation Asset Protection Risk Management Retirement Planning Estate Planning Investments Tax Planning Cash Flow Management Lifestyle Planning

5. Understanding the Importance of Estate Planning Historical definition: • Dealing with the consequences of death and planning for the impact of death duties and other taxes. Definition in 21st Century • The strategies, processes and actions to preserve capital, income and values for the individual, their family and future generations. • More than just a Will & an EPA. • Needs to deal with estate & non-estate assets.

6. Do you have your own Estate Planning in order? • Do you have an enduring power of attorney? • If no, why not? • It’s only for the elderly • Everything is in joint names with your partner • You don’t trust anything • You don’t trust anyone • If yes, then • Is the attorney still suitable? • Do you have a back-up in place? • Will it work seamlessly?

7. Do you have your own Estate Planning in order? (contd) • Do you have an enduring guardianship? • If no, why not? • It’s only for the elderly. • You’ll leave it to your partner to decide. • If yes, then • Is the guardian still appropriate? • Do you have a back-up in place? • Have you given thought as to how you can make it easier for your loved ones if you are incapacitated?

8. Do you have your own Estate Planning in order? (contd) • Do you understand the ownership structure of your assets? • Do you own assets solely? • Do you have asset protection issues? • Are any joint assets owned as joint tenants or tenants in common? • Do you have any trust structures? • Who controls the trust? • Can control be passed on in the event of incapacity or death? • Have loan accounts built up?

9. Do you have your own Estate Planning in order? (contd) • Do you understand the ownership structure of your assets? • Do you have any superannuation? • Is it in an SMSF? • Have you considered control if you become incapacitated or die? • Do you have a death nomination – binding or non-binding? • Are there other fund members who can exercise control? • If not – what type of fund is it? • Does the fund allow binding nominations? • If not binding, what can you do if you want certainty?

10. Do you have your own Estate Planning in order? (contd) • Do you have any life insurance? • Is it adequate? • Is the structure appropriate to the circumstances? • Is it within a super fund? Will this create a tax issue? • Will it pass to the person of your choice? • Will it pass in a tax-effective way? • Do you have asset protection strategies in place? • How will the structuring of debt affect your estate?

11. Do you have your own Estate Planning in order? (contd) • Does your Will reflect your current wishes or personal situation? • Do you have a sophisticated Will which considers: • Both estate and non-estate assets. • Possible tax consequences of superannuation forming part of your estate. • Future tax treatment of your beneficiaries. • Possible liabilities of your beneficiaries to creditors or former spouses. • Possibility of claims being made after your death.

12. What is your role as the adviser? This is a matter for you! Reactive adviser or proactive adviser? Transactional adviser or lead adviser?

13. How to be a lead adviser Professional advisers – accounts, lawyers, doctors, financial, architect, risk, finance broker, superannuation. Specialisation – in all spheres. Jack of all trades, master of none. Jack of all trades, master of one and manager of the others. Management – Macquarie dictionary defines it as ‘the act or manner of managing; handling direction or control’

14. How to be a lead adviser(contd) • Majority of working clients who are business operators, company executives and professionals require a lead adviser. • The lead adviser is the one: • They turn to first. • They trust. • That knows them best. • Who can make life easier for them. • Who can guide them through a myriad of issues. • Who can project manage their life. • Estate planning is one area which draws together so many other areas of planning: every investment decision has an estate planning consequence.

15. How to be a lead adviser (contd) Be the centre of the Client’s universe!

16. How to be a lead Adviser (contd) Wealth Accumulation Asset Protection Risk Management Retirement Planning Estate Planning Investments Tax Planning Cash Flow Management Lifestyle Planning

17. How to be a lead adviser (contd) • The lead adviser helps their client to brief the estate planning lawyers and: • Understands their investment structures. • Works through their family and personal objectives. • Works through the issues surrounding decision making in the event of incapacity or death. • Understands any possible estate planning issues, such as funding shortfalls, asset protection, loan structuring, superannuation income streams, business succession and then collaborate with specialists in those areas to project manage appropriate estate planning outcome for the client.

18. How to be a lead adviser (contd) • The ‘to-do list’ • Start with estate planning – it is central to everything. • Obtain a good understanding of the other areas of specialty and in relation to estate planning: • Go through the process yourself. • Learn from the estate planning lawyer. • Sit in on meetings. • Make estate planning part of your CPD objectives.

19. How to be a lead adviser(contd) • Remember – you are entitled to be paid for your services to the client: • Identify what role you can play in each of the areas of project management, and charge an appropriate disclosed fee. • Estate planning: • General retainer fee. • Fixed fee or hourly rate for participation.

20. How to identify clients estate planning needs ALL clients have estate planning needs. • Suggested checklist • Do they: • Have substitute decision making appointments in place? (PoA and guardianship) • Can you see deficiencies? • Have a Will? • Is it current? Can you see deficiencies? • Have a superannuation death benefit nomination? • Is it current? Can you see deficiencies? SIS dependent? Tax dependent? • Do they fall into a ‘specific circumstances’ category?

21. How to identify clients estate planning needs (contd) • Specific circumstances which highlight the need for estate planning advice. • Do your clients have:

22. How to identify clients estate planning needs(contd) • Specific circumstances which highlight the need (contd) • Client ‘owns’ very little due to personal liability concerns. • Client has had multiple relationships. • Client is concerned about the possibility of a child or beneficiary going through a relationship breakdown. • Client is concerned about the possibility of a child or beneficiary going through financial difficulty. • Client is likely to receive an inheritance. • Client is concerned about the ability of a child or beneficiary to manage an inheritance.

23. Any Questions?