ADVISER FACILITATED ESTATE PLANNING –EVERYTHING YOU NEED TO KNOW TO DELIVER EXCEPTIONAL VALUE
Matthew Burgess and Tara LuckeView Legal
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IT’S NOT MEANT TO BE HARD
Overview
Latest developments1
Three key strategies to be aware of2
Interactive case study examples3
One tool to grow your business 4
Strategy 1: Testamentary Trusts
3 Things
Don’t becomea war story
Estate planningis 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 nominations2
– 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 SMSF1
Wife died with no nomination in place2
Wife’s will purported to distribute super to children3
Husband appointed new corporate trustee of which he was the sole director and shareholder
4
Paid proceeds to himself5
Challenge by executors of wife’s will unsuccessful6
Wooster v Morris
Husband and wife co-trustees and members of SMSF1
Husband had BDBN in favour of daughters (from previous marriage)2
Wife attempted to ignore BDBN, as sole trustee3
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 documents5
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 of 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 of 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 other documentation
Loan to company or trust Lender or legal personal representative of lender
Loan agreement may override will
Business interests Remaining business owners/trusteeof 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 WHY1
Use estate planning to position wealth advice2
Increased revenue from risk and other advice3
Intergenerational advice opportunities4
Solutions focused, not product focused5
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 now1
Audit even if they appear 2016 compliant2
Level of specialisation unique in the market3
Truly leverage being the trusted adviser4
War stories5
Immediate opportunities even if an estate plan is 2016 compliantand health excellent
6
THANK YOUMatthew BurgessDirector
Mobile: 0403 209 977
Email: [email protected]
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 fromother sources within the market, which we believe to be reliable and accurate. It is general in nature and does not constitute specific advice. BusinessHealth 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 YOUTara LuckeDirector of Adviser Solutions
Mobile: 0417 578 150
Email: [email protected]
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 fromother sources within the market, which we believe to be reliable and accurate. It is general in nature and does not constitute specific advice. BusinessHealth 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