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: 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 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: 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 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