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
IT’S NOT MEANT TO BE HARD
Overview Latest developments 1 Three key strategies to be aware of 2 Interactive case study examples 3 One tool to grow your business 4
Strategy 1: Testamentary Trusts
3 Things Estate planning No estate plan = Don’t become is more than estate plan a war story just a will
Risks Litigation against a beneficiary 1 Personal relationship breakdown of a beneficiary 2 Challenge against the estate 3 Protecting wealth from spendthrift beneficiaries 4 Didn’t take opportunity to use testamentary trusts for tax planning 5
Right People ✗ ✓ Spouse (current!) Beneficiary’s creditors Children Tax office Grandchildren Former spouses Trust Lawyers
TT overview Established under will – effective on death 1 Asset protection 2 Tax planning opportunities (CGT and income) 3 Succession and control 4
I Love You Approach Assets Estate Debts Beneficiaries
TT Approach Assets Trustee Estate TT Beneficiaries
Strategy 2: Superannuation
Succession Strategies Control of trusteeship – who are your executors? 1 Death benefit nominations 2 – Binding or non-binding – Lapsing (every 3 years) – Non-lapsing (set and forget) Reversionary pensions vs BDBNs 3 Superannuation will 4
Superannuation Cases Katz v Grossman – Original 1 Ioppolo v Conti (WA) 2 Wooster v Morris (Victoria) 3 McIntosh v McIntosh (Queensland) 4 Brine v Carter (South Australia) 5
Ioppolo v Conti Husband and wife co-trustees and members of SMSF 1 Wife died with no nomination in place 2 Wife’s will purported to distribute super to children 3 Husband appointed new corporate trustee of which he was the sole 4 director and shareholder Paid proceeds to himself 5 Challenge by executors of wife’s will unsuccessful 6
Wooster v Morris Husband and wife co-trustees and members of SMSF 1 Husband had BDBN in favour of daughters (from previous marriage) 2 Wife attempted to ignore BDBN, as sole trustee 3 Husband’s daughters successfully challenged wife’s exercise of 4 discretion as trustee Wife ordered to pay costs of litigation out of personal SMSF 5 entitlements
Strategy 3: Assets Outside The Estate
Assets which do not form part of Estate Estate assets 1 Non-estate assets 2 Asset type 3 Control 4 Regulating documents 5
Assets which do not form part of Estate (Cont’d) Asset Type Control Documents Regulating Joint tenancy (as opposed Survivor Position at law to tenants in common) Superannuation Member within three years of death Valid binding (binding nomination) nomination Superannuation Fund trustee post death Trust deed or terms of (no binding nomination) pension Discretionary trust Appointor/principal, or in the absence Trust deed or trusts Act (individual trustee) of both, surviving trustee. If no surviving trustee, then legal personal representative of estate Discretionary trustee Appointor/principal, or in the absence Trust deed or (corporate trustee) of both, remaining directors of constitution for corporate trustee, subject to the corporate trustee shareholder’s power to remove
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 Director subject to appointment by Constitution or shareholders shareholders agreement. Transfer of shares may be pursuant to will depending on other documentation Loan to company or trust Lender or legal personal Loan agreement may representative of lender override will Business interests Remaining business owners/trustee Business succession of will agreement/partnership Act Life insurance Policy owner or nominated beneficiary Insurance policy
One Tool To Deliver Exceptional Value
View Legal Adviser Solution Platforms
Why Are We So Passionate? Start with WHY 1 Use estate planning to position wealth advice 2 Increased revenue from risk and other advice 3 Intergenerational advice opportunities 4 Solutions focused, not product focused 5
Adviser Facilitated Estate Planning Solutions
Adviser Facilitated Estate Planning Solutions (Cont’d)
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)
Calls to action Have the conversations now 1 Audit even if they appear 2016 compliant 2 Level of specialisation unique in the market 3 Truly leverage being the trusted adviser 4 War stories 5 Immediate opportunities even if an estate plan is 2016 compliant 6 and health excellent
THANK YOU Matthew Burgess Director Mobile: 0403 209 977 Email: matthew.burgess@viewlegal.com.au Website: http://www.viewlegal.com.au/ Blog: http://www.blog.viewlegal.com.au/ Twitter: https://twitter.com/matthewwburgess Linked in: http://au.linkedin.com/pub/matthew-burgess/1a/170/675 Instagram: @matthewwburgess 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
THANK YOU Tara Lucke Director of Adviser Solutions Mobile: 0417 578 150 Email: tara.lucke@viewlegal.com.au Website: http://www.viewlegal.com.au/ Blog: http://www.blog.viewlegal.com.au/ Twitter: https://twitter.com/tlucke1 Linked in: https://au.linkedin.com/pub/tara-lucke/60/1bb/532 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
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