estate planning 5 ways to engage with your clients

Estate Planning:

5 Ways

To

Engage With Your Clients

Gil Gordon CFPestateplanningforlife.com.au

Important Notice

Who is Gil Gordon?

• Joined profession in 1994

• CFP

• Principal – RI Lower Hunter a traditional, mid sized

planning business in the Hunter Valley of NSW

• Author: “The bugger went and died on me…AND I

DON’T KNOW WHAT TO DO!”

• Passionate about Estate Planning, Cashflow and

business innovation

• Married, 4 kids, lives and plays on a 10 acre horsey,

hobby farm in Maitland

Important NoticeGil Gordon is a director of Systems For Professionals Pty Ltd and

employed by Gordon Financial Services a licenced Financial Adviser

with RI Advice Group.

RI Advice Group Pty Ltd, ABN 23 001 774 125, holds Australian

Financial Services Licence Number 238429 and is licensed to provide

financial product advice and deal in financial products such as: deposit

and payment products, derivatives, life products, managed investment

schemes including investor directed portfolio services, securities,

superannuation, Retirement Savings Accounts.

The information presented in this seminar is of a general nature only and

neither represents nor is intended to be specific financial or legal advice

on any particular matter. Gil Gordon, Systems For Professionals & RI

Advice Group strongly suggests that no person should act specifically on

the basis of the information contained herein but should obtain

appropriate professional advice based on their own circumstances.

The Mandatory Disclaimer!

Today’s Agenda

1. Family Tree: good advice puts people first!

2. Story Telling

3. Common Problems and their solutions

4. Deliverables the clients actually care about

5. Pricing & Positioning

“Mum & Dad” not “HNW” value proposition.

Important Note: there is no difference in the approach to HNW clients.

1 up, 1 across

& 2 down

How To:

1 generation up• Parents

• Elderly dependant relatives/friends

1 generation across • Siblings

• Business partners

• Close friends/dependants

2 generations down• Children, step children & “child type” dependants

• Grandchildren

People First

People First: 1 up, 1 across, 2 down

Ask about:1. Physical & Emotional Dependency

2. Health

3. Behaviour and skill with money

4. Influence of spouses, in-laws & associates

5. Divorce risk

6. Financial situation

7. Debt burden

8. Substance abuse and behavioural issues

9. Business risks

10. Domicility

People First: Questions

Quick ‘how to’ for advisers: 1 up, 1 across, 2 downWidowed, frail ,

physically dependantDisabled

Financially dependant

No financial complexity (NFC)

NFC

NFC

Family Tree: 1 up, 1 across, 2 down

Step father Healthy

Divorce &

Inheritance Risk


2. Health



5. Divorce risk


7. Debt burden


9. Business risks

10. Domicility


Quick ‘how to’ for advisers: 1 up, 1 across, 2 downWidowed, frail ,

physically dependantDisabled

Financially dependant

No financial complexity (NFC)

NFC

NFC

Acrimonious Ex

PAYG

Blended family

Strong marriage

$ pressure

Marriage strained

Self employed

Debt pressure

No substance abuse

One child with Aspergers

Good marriage

No substance abuse

Strong with $

PAYG

Step child

Financially

dependant

Family Tree: 1 up, 1 across, 2 down

Step father Healthy

Watch out for the Love Child!

Divorce &

Inheritance Risk


2. Health



5. Divorce risk


7. Debt burden


9. Business risks

10. Domicility


StorytellingHow To:

Ask about:Storytelling

Setup &

Engagement

Dramatic

Event

Relax &

Reflect

Storytelling

Journey

Emotional


Facts

make us

thinkEmotions

make us act


Stories told by a professional :

1. Interesting & relatable

2. Suspend the rational mind (for a period)

3. Create emotion

4. Drive engagement

5. Create a call for action

www.estateplanningforlife.com.au


https://vimeo.com/85493206

One of the most popular Superbowl

commercials of all time

Common Problems

and solutions

How To:

What follows is not legal advice

you can rely upon!

Cultivate a relationship with a competent estate

planning legal service provider!

In my experience they are hard to find!

Yet Another Disclaimer!

4 Reasons to review the Will

1. Tax

2. Divorce

3. Death

4. Asset Protection

The Right Legal Documents

A Testamentary Trust

$

• Like a “will trust” for a young child, but it applies for adults and lasts up to 80 years

• $ don’t pass directly to beneficiaries

• $ pass to a trust controlled by a trustee (normally child) for your bloodline’s benefit

Not like this

$

Like this

The Right Legal Documents

$18,200 $37,000 $80,000 $180,000

0% 21%

34.5%

39%

49%

Effective 2013 Income Tax Scales(Including 2% Medicare)

Example: Inheritance Invested

Estate of $1,200,000 with 2 beneficiaries

Inheritance amount: $600,000 each

Investment yield: 6% (say )

Interest earned: $36,000 pa

34.5% income tax: $12,420 pa tax

2 Families: $24,840 pa tax

Reason 1: Tax

A Better Solution: 2 Testamentary Trusts

Same Income ($36,000 to each family)

Income allocated to grandchildren (not adult children)

$18,000 income to each grandchild

$0 tax!

Annual tax saving across 2 families up to $24,840

$

$1,200,000 estate

Reason1: Tax

DivorceWhat parents want

$

$0

$

$

$0

What parents are afraid of

$

Reason 2: Divorce

Divorce: a better way

$

Trust

Bloodline Beneficiaries

Trustee

Reason 2: Divorce

Death & RepartneringWhat

parents

want

What they’re afraid of$

$

$ $

$

$0

$

Reason 3: Death

Death & Repartnering: a better way

Trust

Bloodline

Beneficiaries

Family appoints

the next trustee

$

$

Reason 3: Death

Bankruptcy & Legal ThreatRemember 1x 2½x 22½ x

Top 5 reasons for personal bankruptcy:

Job Loss

Divorce/separation

Debts and credit cards

Poor health

Adverse litigation

Reason 4: Asset Protection

(Financial Stress)

(Fire) (Health)

Protecting The Family Home

Repay

Bank

$

Trust

Inheritance$

Family Home Unprotected!

Risk

Risk

Loan

Registered

Mortgage

Protected by loan to Trust

Reason 4: Asset Protection

Ask about:What is the state of implementation of an Estate Planning Service in your practice:

1. Implemented

2. Currently under development

3. We see the need and want to develop a service

4. Currently researching and considering it

5. Not on our radar but interested

Survey – your practice

Our practice focuses on:

1. Retirees and pre-retiree investment services

2. Specialist risk practice

3. Holistic – investment & risk, broad age profile

4. Niche market specialist

5. Other

Partnering with…

The Lawyers!

How To:

Partnering With Legal ProfessionalsReferral Options Issues

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

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?”

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

1. The Right Legal Documents to protect your family

2. The Information That Matters

3. A Crisis Management Plan

4. Engage with the next generation

5. Ongoing Review

Key Deliverables

What is EPFL?

1. WITYEP

Survey


(ITM)

3. Estate Planning Record

4. Crisis Mgmnt Plan

(CMP)

5. Review

• WITYEP – What’s Important To You – Estate Planning

• Online gap analysis tool that helps you identify and

prioritise your estate planning concerns

• Estate Priorities Report of issues to be resolved

• Register of information that family

and professionals need to assist

with estate matters

• People, Structures, Documents,

Assets, Debts, Insurances, Legal

Responsibilities

• What do I need to know?

• Who do I call?

• What do I ask them?

• What is important?

What can wait?

• Regular review of your legal docs,

ITM & CMP

• CMP is an action plan for family to

follow during a crisis • Automated extract of key issues

identified from the EPFL system

• Creates a briefing note for other

professionals (e.g. solicitor)

36

Dad’s had a stroke……I have Power of Attorney……

Now what do I do..?

1. People

5. Debts

6.Insurances

7. Responsibilities

THE INFORMATION

THAT MATTERS

4. Assets

2. Documents &

Information9. Medical

8. Bills

10. www...

3. Structures & Business

The Information That Matters

Plus:

Assets

Liabilities

Structures

Insurances

Legal Responsibilities

Online identity

Medical history

etc






5. Ongoing Review

Key Deliverables

If the worst happens don’t expect me

to think clearly or know what to do.

I will put one foot in front of the other

until I recover.

But in the meantime I need you to

give me a simple guide, step by step,

day by day.....

......... Angie W.

Crisis Management Plan

1. What documents do I need?

2. Who do I need to call?

3. What to I ask them?

4. What’s important?

5. What can wait?


1. The right legal documents to protect your family




5. Ongoing Review

Key Deliverables

1. They care about their parents

2. They have children too….

3. They are curious

The Next Generation

1. Legal documents – every 5 years or so

2. Information That Matters – every 12-24 months

3. Crisis Management Plan – every 12 -24 months

Ongoing Review




4. Engage With Next Generation

5. Ongoing Review of your estate planning needs

6. No SoA and associated complexity

Client Value Proposition

Ask about:Rank out of 5 (1 = lowest, 5 = highest) the extent to which you

could implement profitably the models for engagement:

1. Family Tree

2. Storytelling (e.g. the eBook)

3. 4 Reasons to Review Your Will

4. Partnering With Lawyers

5. Demonstrating tools like Estate Planning For Life

6. Engaging with the next generation

Survey

PricingHow To:

1. Transactional vs ongoing charging model

2. Legal documents

i. Solicitors typically charge $3,300 to $11,000 for this work

ii. Online $1,000 to $2,000 + your fees

3. Our fees for Estate Planning For Life service to clients

i. Lowest $550 pa

ii. Normal $1,320 pa

iii. Highest $9,900 pa

4. Platinums first, after 6 you will be using EPFL to win new business

5. Be wary of undercharging for this work, very little price resistance

Pricing & Positioning

If I had asked my customers what they wanted, they would have said

“...a faster horse....”

Henry Ford

Leadership

You need to lead the change...

linkedin.com/in/gordongil

[email protected]

@gordongil

02 49330100

eBook: www.estateplanningforlife.com.au

Contact

Thankyou, questions?

estate planning 5 ways to engage with your clients

Economy & Finance