Estate planning 5 ways to engage with your clients

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<ul><li><p>Estate Planning:</p><p>5 Ways </p><p>To </p><p>Engage With Your Clients</p><p>Gil Gordon CFPestateplanningforlife.com.au</p></li><li><p>Important Notice</p><p>Who is Gil Gordon?</p><p> Joined profession in 1994</p><p> CFP</p><p> Principal RI Lower Hunter a traditional, mid sized </p><p>planning business in the Hunter Valley of NSW</p><p> Author: The bugger went and died on meAND I </p><p>DONT KNOW WHAT TO DO!</p><p> Passionate about Estate Planning, Cashflow and </p><p>business innovation</p><p> Married, 4 kids, lives and plays on a 10 acre horsey, </p><p>hobby farm in Maitland</p></li><li><p>Important NoticeGil Gordon is a director of Systems For Professionals Pty Ltd and</p><p>employed by Gordon Financial Services a licenced Financial Adviser</p><p>with RI Advice Group.</p><p>RI Advice Group Pty Ltd, ABN 23 001 774 125, holds Australian</p><p>Financial Services Licence Number 238429 and is licensed to provide</p><p>financial product advice and deal in financial products such as: deposit</p><p>and payment products, derivatives, life products, managed investment</p><p>schemes including investor directed portfolio services, securities,</p><p>superannuation, Retirement Savings Accounts.</p><p>The information presented in this seminar is of a general nature only and</p><p>neither represents nor is intended to be specific financial or legal advice</p><p>on any particular matter. Gil Gordon, Systems For Professionals &amp; RI</p><p>Advice Group strongly suggests that no person should act specifically on</p><p>the basis of the information contained herein but should obtain</p><p>appropriate professional advice based on their own circumstances.</p><p>The Mandatory Disclaimer!</p></li><li><p>Todays Agenda</p><p>1. Family Tree: good advice puts people first!</p><p>2. Story Telling</p><p>3. Common Problems and their solutions</p><p>4. Deliverables the clients actually care about</p><p>5. Pricing &amp; Positioning</p><p>Mum &amp; Dad not HNW value proposition. </p><p>Important Note: there is no difference in the approach to HNW clients.</p></li><li><p>1 up, 1 across </p><p>&amp; 2 down</p><p>How To:</p></li><li><p>1 generation up Parents </p><p> Elderly dependant relatives/friends</p><p>1 generation across Siblings</p><p> Business partners</p><p> Close friends/dependants</p><p>2 generations down Children, step children &amp; child type dependants</p><p> Grandchildren</p><p>People First</p></li><li><p>People First: 1 up, 1 across, 2 down</p></li><li><p>Ask about:1. Physical &amp; Emotional Dependency</p><p>2. Health</p><p>3. Behaviour and skill with money</p><p>4. Influence of spouses, in-laws &amp; associates</p><p>5. Divorce risk</p><p>6. Financial situation</p><p>7. Debt burden</p><p>8. Substance abuse and behavioural issues</p><p>9. Business risks</p><p>10. Domicility</p><p>People First: Questions</p></li><li><p>Quick how to for advisers: 1 up, 1 across, 2 downWidowed, frail , </p><p>physically dependantDisabled</p><p>Financially dependant</p><p>No financial complexity (NFC)</p><p>NFC</p><p>NFC</p><p>Family Tree: 1 up, 1 across, 2 down</p><p>Step father Healthy </p><p>Divorce &amp; </p><p>Inheritance Risk</p></li><li><p>Ask about:1. Physical &amp; Emotional Dependency</p><p>2. Health</p><p>3. Behaviour and skill with money</p><p>4. Influence of spouses, in-laws &amp; associates</p><p>5. Divorce risk</p><p>6. Financial situation</p><p>7. Debt burden</p><p>8. Substance abuse and behavioural issues</p><p>9. Business risks</p><p>10. Domicility</p><p>People First: Questions</p></li><li><p>Quick how to for advisers: 1 up, 1 across, 2 downWidowed, frail , </p><p>physically dependantDisabled</p><p>Financially dependant</p><p>No financial complexity (NFC)</p><p>NFC</p><p>NFC</p><p>Acrimonious Ex </p><p>PAYG</p><p>Blended family </p><p>Strong marriage</p><p>$ pressure</p><p>Marriage strained</p><p>Self employed</p><p>Debt pressure</p><p>No substance abuse</p><p>One child with Aspergers</p><p>Good marriage</p><p>No substance abuse</p><p>Strong with $</p><p>PAYG</p><p>Step child</p><p>Financially</p><p>dependant</p><p>Family Tree: 1 up, 1 across, 2 down</p><p>Step father Healthy </p><p>Watch out for the Love Child!</p><p>Divorce &amp; </p><p>Inheritance Risk</p></li><li><p>Ask about:1. Physical &amp; Emotional Dependency</p><p>2. Health</p><p>3. Behaviour and skill with money</p><p>4. Influence of spouses, in-laws &amp; associates</p><p>5. Divorce risk</p><p>6. Financial situation</p><p>7. Debt burden</p><p>8. Substance abuse and behavioural issues</p><p>9. Business risks</p><p>10. Domicility</p><p>People First: Questions</p></li><li><p>StorytellingHow To:</p></li><li><p>Ask about:Storytelling</p><p>Setup &amp; </p><p>Engagement</p><p>Dramatic</p><p>Event</p><p>Relax &amp; </p><p>Reflect</p><p>Storytelling </p><p>Journey</p><p>Emotional</p></li><li><p>Ask about:Storytelling</p><p>Facts </p><p>make us </p><p>thinkEmotions </p><p>make us act</p></li><li><p>Ask about:Storytelling</p><p>Stories told by a professional :</p><p>1. Interesting &amp; relatable</p><p>2. Suspend the rational mind (for a period)</p><p>3. Create emotion</p><p>4. Drive engagement </p><p>5. Create a call for action</p><p>www.estateplanningforlife.com.au</p></li><li><p>Ask about:Storytelling</p><p>https://vimeo.com/85493206</p><p>One of the most popular Superbowl</p><p>commercials of all time</p></li><li><p>Common Problems </p><p>and solutions</p><p>How To:</p></li><li><p>What follows is not legal advice </p><p>you can rely upon!</p><p>Cultivate a relationship with a competent estate </p><p>planning legal service provider! </p><p>In my experience they are hard to find!</p><p>Yet Another Disclaimer!</p></li><li><p>4 Reasons to review the Will</p><p>1. Tax</p><p>2. Divorce</p><p>3. Death</p><p>4. Asset Protection</p><p>The Right Legal Documents</p></li><li><p>A Testamentary Trust</p><p>$</p><p> Like a will trust for a young child, but it applies for adults and lasts up to 80 years</p><p> $ dont pass directly to beneficiaries</p><p> $ pass to a trust controlled by a trustee (normally child) for your bloodlines benefit</p><p>Not like this</p><p>$</p><p>Like this</p><p>The Right Legal Documents</p></li><li><p>$18,200 $37,000 $80,000 $180,000</p><p>0% 21%</p><p>34.5%</p><p>39%</p><p>49%</p><p>Effective 2013 Income Tax Scales(Including 2% Medicare)</p><p>Example: Inheritance Invested</p><p>Estate of $1,200,000 with 2 beneficiaries</p><p>Inheritance amount: $600,000 each</p><p>Investment yield: 6% (say )</p><p>Interest earned: $36,000 pa</p><p>34.5% income tax: $12,420 pa tax </p><p>2 Families: $24,840 pa tax</p><p>Reason 1: Tax</p></li><li><p>A Better Solution: 2 Testamentary Trusts</p><p> Same Income ($36,000 to each family)</p><p> Income allocated to grandchildren (not adult children)</p><p> $18,000 income to each grandchild</p><p> $0 tax!</p><p> Annual tax saving across 2 families up to $24,840</p><p>$</p><p>$1,200,000 estate</p><p>Reason1: Tax</p></li><li><p>DivorceWhat parents want</p><p>$</p><p>$0</p><p>$</p><p>$</p><p>$0</p><p>What parents are afraid of</p><p>$</p><p>Reason 2: Divorce</p></li><li><p>Divorce: a better way</p><p>$</p><p>Trust</p><p>Bloodline Beneficiaries</p><p>Trustee</p><p>Reason 2: Divorce</p></li><li><p>Death &amp; RepartneringWhat </p><p>parents </p><p>want</p><p>What theyre afraid of$</p><p>$</p><p>$ $</p><p>$</p><p>$0</p><p>$</p><p>Reason 3: Death</p></li><li><p>Death &amp; Repartnering: a better way</p><p>Trust</p><p>Bloodline </p><p>Beneficiaries</p><p>Family appoints </p><p>the next trustee</p><p>$</p><p>$</p><p>Reason 3: Death</p></li><li><p>Bankruptcy &amp; Legal ThreatRemember 1x 2x 22 x</p><p>Top 5 reasons for personal bankruptcy:</p><p>Job Loss</p><p>Divorce/separation</p><p>Debts and credit cards</p><p>Poor health</p><p>Adverse litigation</p><p>Reason 4: Asset Protection</p><p>(Financial Stress)</p><p>(Fire) (Health)</p></li><li><p>Protecting The Family Home</p><p>Repay </p><p>Bank</p><p>$</p><p>Trust</p><p>Inheritance$</p><p>Family Home Unprotected!</p><p>Risk</p><p>Risk</p><p>Loan</p><p>Registered </p><p>Mortgage</p><p>Protected by loan to Trust</p><p>Reason 4: Asset Protection</p></li><li><p>Ask about:What is the state of implementation of an Estate Planning Service in your practice: </p><p>1. Implemented</p><p>2. Currently under development</p><p>3. We see the need and want to develop a service</p><p>4. Currently researching and considering it</p><p>5. Not on our radar but interested</p><p>Survey your practice</p><p>Our practice focuses on:</p><p>1. Retirees and pre-retiree investment services</p><p>2. Specialist risk practice</p><p>3. Holistic investment &amp; risk, broad age profile</p><p>4. Niche market specialist</p><p>5. Other</p></li><li><p>Partnering with</p><p>The Lawyers!</p><p>How To:</p></li><li><p>Partnering With Legal ProfessionalsReferral Options Issues</p><p>Cold Go and see your solicitor Not a value proposition of your firm Lawyer may undermine you High risk lawyer lacks relevant skills Very hard for you to charge fees </p><p>Warm Advisers briefs lawyer Good if client complexity exists or if relationship is reciprocal Not a value proposition of your firm Lawyer positioned as a alpha adviser not you Risk lawyer may undermine your advice or lack skills Difficulty charging fees: Why do I have to pay you and the lawyer?</p><p>In House Position lawyer part of your value proposition Lawyer validates and supports your firm and skills Specialist online estate planning lawyers are set up this way Very easy to charge facilitation fees Generally lower overall cost for client Lawyers accept liability in writing for legal advice</p></li><li><p>33</p></li><li><p>1. The Right Legal Documents to protect your family</p><p>2. The Information That Matters</p><p>3. A Crisis Management Plan</p><p>4. Engage with the next generation</p><p>5. Ongoing Review</p><p>Key Deliverables</p></li><li><p>What is EPFL?</p><p>1. WITYEP</p><p>Survey</p><p>2. The Information That Matters </p><p>(ITM)</p><p>3. Estate Planning Record</p><p>4. Crisis Mgmnt Plan</p><p>(CMP)</p><p>5. Review</p><p> WITYEP Whats Important To You Estate Planning</p><p> Online gap analysis tool that helps you identify and </p><p>prioritise your estate planning concerns</p><p> Estate Priorities Report of issues to be resolved</p><p> Register of information that family </p><p>and professionals need to assist </p><p>with estate matters</p><p> People, Structures, Documents, </p><p>Assets, Debts, Insurances, Legal </p><p>Responsibilities</p><p> What do I need to know? </p><p> Who do I call? </p><p> What do I ask them? </p><p> What is important?</p><p>What can wait?</p><p> Regular review of your legal docs, </p><p>ITM &amp; CMP</p><p> CMP is an action plan for family to </p><p>follow during a crisis Automated extract of key issues </p><p>identified from the EPFL system</p><p> Creates a briefing note for other </p><p>professionals (e.g. solicitor)</p></li><li><p>36</p><p>Dads had a strokeI have Power of Attorney</p><p>Now what do I do..?</p></li><li><p>1. People</p><p>5. Debts</p><p>6.Insurances</p><p>7. Responsibilities</p><p>THE INFORMATIONTHAT MATTERS</p><p>4. Assets</p><p>2. Documents &amp; </p><p>Information9. Medical</p><p>8. Bills</p><p>10. www...</p><p>3. Structures &amp; Business</p><p>The Information That Matters</p></li><li><p>The Information That Matters</p></li><li><p>The Information That Matters</p></li><li><p>The Information That Matters</p></li><li><p>The Information That Matters</p></li><li><p>Plus:</p><p> Assets </p><p> Liabilities</p><p> Structures</p><p> Insurances</p><p> Legal Responsibilities</p><p> Online identity</p><p> Medical history </p><p> etc</p><p>The Information That Matters</p></li><li><p>1. The Right Legal Documents to protect your family</p><p>2. The Information That Matters</p><p>3. A Crisis Management Plan</p><p>4. Engage with the next generation </p><p>5. Ongoing Review</p><p>Key Deliverables</p></li><li><p>If the worst happens dont expect me </p><p>to think clearly or know what to do. </p><p>I will put one foot in front of the other </p><p>until I recover.</p><p>But in the meantime I need you to </p><p>give me a simple guide, step by step, </p><p>day by day.....</p><p>......... Angie W.</p><p>Crisis Management Plan</p></li><li><p>1. What documents do I need?</p><p>2. Who do I need to call?</p><p>3. What to I ask them?</p><p>4. Whats important?</p><p>5. What can wait?</p><p>Crisis Management Plan</p></li><li><p>Crisis Management Plan</p></li><li><p>Crisis Management Plan</p></li><li><p>Crisis Management Plan</p></li><li><p>Crisis Management Plan</p></li><li><p>1. The right legal documents to protect your family</p><p>2. The Information That Matters</p><p>3. A Crisis Management Plan</p><p>4. Engage with the next generation</p><p>5. Ongoing Review</p><p>Key Deliverables</p></li><li><p>1. They care about their parents </p><p>2. They have children too.</p><p>3. They are curious</p><p>The Next Generation</p></li><li><p>1. Legal documents every 5 years or so</p><p>2. Information That Matters every 12-24 months</p><p>3. Crisis Management Plan every 12 -24 months</p><p>Ongoing Review</p></li><li><p>1. The Right Legal Documents to protect your family </p><p>2. The Information That Matters</p><p>3. A Crisis Management Plan</p><p>4. Engage With Next Generation</p><p>5. Ongoing Review of your estate planning needs</p><p>6. No SoA and associated complexity</p><p>Client Value Proposition</p></li><li><p>Ask about:Rank out of 5 (1 = lowest, 5 = highest) the extent to which you </p><p>could implement profitably the models for engagement:</p><p>1. Family Tree</p><p>2. Storytelling (e.g. the eBook)</p><p>3. 4 Reasons to Review Your Will</p><p>4. Partnering With Lawyers</p><p>5. Demonstrating tools like Estate Planning For Life</p><p>6. Engaging with the next generation</p><p>Survey</p></li><li><p>PricingHow To:</p></li><li><p>1. Transactional vs ongoing charging model</p><p>2. Legal documents</p><p>i. Solicitors typically charge $3,300 to $11,000 for this work</p><p>ii. Online $1,000 to $2,000 + your fees</p><p>3. Our fees for Estate Planning For Life service to clients</p><p>i. Lowest $550 pa</p><p>ii. Normal $1,320 pa</p><p>iii. Highest $9,900 pa</p><p>4. Platinums first, after 6 you will be using EPFL to win new business</p><p>5. Be wary of undercharging for this work, very little price resistance</p><p>Pricing &amp; Positioning</p></li><li><p>If I had asked my customers what they wanted, they would have said </p><p>...a faster horse....</p><p>Henry Ford </p><p>Leadership</p><p>You need to lead the change... </p></li><li><p>linkedin.com/in/gordongil</p><p>gil.gordon@estateplanningforlife.com.au</p><p>@gordongil</p><p>02 49330100</p><p>eBook: www.estateplanningforlife.com.au</p><p>Contact</p></li><li><p>Thankyou, questions?</p></li></ul>