ESTATE PLANNING EVERYTHING YOU NEED TO KNOW TO DELIVER - - PowerPoint PPT Presentation

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

Don’t become a war story Estate planning is more than just a will No estate plan = estate plan

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!)  Children  Grandchildren  Trust

✗

 Beneficiary’s creditors  Tax office  Former spouses  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

Debts Assets Beneficiaries Estate

TT Approach

Assets Estate Trustee 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 Superannuation will

3 4

Superannuation Cases

Katz v Grossman – Original Ioppolo v Conti (WA) Wooster v Morris (Victoria) McIntosh v McIntosh (Queensland)

1 2 3 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 director and shareholder

4

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 discretion as trustee

4

Wife ordered to pay costs of litigation out of personal SMSF entitlements

5

Strategy 3: Assets Outside The Estate

Assets which do not form part of Estate

Estate assets Non-estate assets Asset type Control

1 2 3 4

Regulating documents

5

Assets which do not form part of Estate (Cont’d)

Asset Type Control Documents Regulating Joint tenancy (as opposed to tenants in common) Survivor Position at law Superannuation (binding nomination) Member within three years of death Valid binding nomination Superannuation (no binding nomination) Fund trustee post death Trust deed or terms of pension Discretionary trust (individual trustee) Appointor/principal, or in the absence

• f both, surviving trustee. If no

surviving trustee, then legal personal representative of estate Trust deed or trusts Act Discretionary trustee (corporate trustee) Appointor/principal, or in the absence

• f both, remaining directors of

corporate trustee, subject to the shareholder’s power to remove Trust deed or constitution for corporate trustee

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 shareholders Constitution or shareholders

• agreement. Transfer of

shares may be pursuant to will depending on

• ther documentation

Loan to company or trust Lender or legal personal representative of lender Loan agreement may

• verride will

Business interests Remaining business owners/trustee

• f will

Business succession 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 and health excellent

6

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

• ther 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

• ther 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