ADVISER FACILITATED ESTATE PLANNING EVERYTHING YOU NEED TO KNOW TO DELIVER EXCEPTIONAL VALUE

Transcription

1 ADVISER FACILITATED ESTATE PLANNING EVERYTHING YOU NEED TO KNOW TO DELIVER EXCEPTIONAL VALUE Matthew Burgess and Tara Lucke View Legal Images used under license from Shutterstock.com

2 IT S NOT MEANT TO BE HARD

3 Overview 1 Latest developments 2 Three key strategies to be aware of 3 Interactive case study examples 4 One tool to grow your business

4 Strategy 1: Testamentary Trusts

5 3 Things No estate plan = estate plan Estate planning is more than just a will Don t become a war story

6 Risks 1 Litigation against a beneficiary 2 Personal relationship breakdown of a beneficiary 3 Challenge against the estate 4 Protecting wealth from spendthrift beneficiaries 5 Didn t take opportunity to use testamentary trusts for tax planning

7 Right People Beneficiary s creditors Tax office Former spouses Lawyers Spouse (current!) Children Grandchildren Trust

8 TT overview 1 Established under will effective on death 2 Asset protection 3 Tax planning opportunities (CGT and income) 4 Succession and control

9 I Love You Approach Assets Estate Debts Beneficiaries

10 TT Approach Assets Trustee Estate TT Beneficiaries

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13 Strategy 2: Superannuation

14 Succession Strategies 1 Control of trusteeship who are your executors? 2 Death benefit nominations Binding or non-binding Lapsing (every 3 years) Non-lapsing (set and forget) 3 Reversionary pensions vs BDBNs 4 Superannuation will

15 Superannuation Cases 1 Katz v Grossman Original 2 Ioppolo v Conti (WA) 3 Wooster v Morris (Victoria) 4 McIntosh v McIntosh (Queensland) 5 Brine v Carter (South Australia)

16 Ioppolo v Conti Husband and wife co-trustees and members of SMSF Wife died with no nomination in place Wife s will purported to distribute super to children Husband appointed new corporate trustee of which he was the sole director and shareholder Paid proceeds to himself Challenge by executors of wife s will unsuccessful

17 Wooster v Morris 1 Husband and wife co-trustees and members of SMSF 2 Husband had BDBN in favour of daughters (from previous marriage) Wife attempted to ignore BDBN, as sole trustee Husband s daughters successfully challenged wife s exercise of discretion as trustee Wife ordered to pay costs of litigation out of personal SMSF entitlements

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19 Strategy 3: Assets Outside The Estate

20 Assets which do not form part of Estate 1 Estate assets 2 Non-estate assets 3 Asset type 4 Control 5 Regulating documents

21 Assets which do not form part of Estate (Cont d) Asset Type Control Documents Regulating Joint tenancy (as opposed to tenants in common) Superannuation (binding nomination) Superannuation (no binding nomination) Discretionary trust (individual trustee) Survivor Member within three years of death Fund trustee post death Appointor/principal, or in the absence of both, surviving trustee. If no surviving trustee, then legal personal representative of estate Position at law Valid binding nomination Trust deed or terms of pension Trust deed or trusts Act Discretionary trustee (corporate trustee) Appointor/principal, or in the absence of both, remaining directors of corporate trustee, subject to the shareholder s power to remove Trust deed or constitution for corporate trustee

22 Assets which do not form part of Estate (Cont d) Asset Type Control Documents Regulating Unit trust As above for discretionary trusts Ultimate benefit in trust regulated by trust deed and unitholdings Private company Loan to company or trust Business interests Director subject to appointment by shareholders Lender or legal personal representative of lender Remaining business owners/trustee of will Constitution or shareholders agreement. Transfer of shares may be pursuant to will depending on other documentation Loan agreement may override will Business succession agreement/partnership Act Life insurance Policy owner or nominated beneficiary Insurance policy

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24 One Tool To Deliver Exceptional Value

25 View Legal Adviser Solution Platforms

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27 Why Are We So Passionate? 1 Start with WHY 2 Use estate planning to position wealth advice 3 Increased revenue from risk and other advice 4 Intergenerational advice opportunities 5 Solutions focused, not product focused

28 Adviser Facilitated Estate Planning Solutions

29 Adviser Facilitated Estate Planning Solutions (Cont d)

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32 YOUR ROLE IN THE ADMINISTRATION PROCESS Adviser Lawyer Death certificate issued, current will obtained and instructions submitted to View Legal with an asset schedule Advertisement/notice of application for grant Preparation of the application for grant and submission with the court Grant issued and supplied to adviser Distribution of assets (if needed)

33 Calls to action Have the conversations now Audit even if they appear 2016 compliant Level of specialisation unique in the market Truly leverage being the trusted adviser War stories Immediate opportunities even if an estate plan is 2016 compliant and health excellent

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37 Matthew Burgess Director THANK YOU Mobile: Website: Blog: Twitter: Linked in: The material contained in this presentation is based either on information derived from our proprietary business diagnostics (including research) or from other sources within the market, which we believe to be reliable and accurate. It is general in nature and does not constitute specific advice. Business Health makes no representation or warranty as to the validity, relevance or accuracy of this information as it pertains to any specific practice or business. Proprietary & Confidential

38 Tara Lucke Director of Adviser Solutions THANK YOU Mobile: Website: Blog: Twitter: Linked in: The material contained in this presentation is based either on information derived from our proprietary business diagnostics (including research) or from other sources within the market, which we believe to be reliable and accurate. It is general in nature and does not constitute specific advice. Business Health makes no representation or warranty as to the validity, relevance or accuracy of this information as it pertains to any specific practice or business. Proprietary & Confidential