This document provides guidance for financial advisors on engaging with clients about estate planning. It recommends focusing on clients' families by mapping out relationships across one generation up, one across, and two down. It suggests asking questions to understand clients' family situations and dependencies. The document also provides tips on using storytelling to engage clients emotionally. It discusses common estate planning problems like taxes, divorce, death, and asset protection that legal documents can address. It recommends partnering with lawyers and providing clients with key deliverables like a crisis management plan and ongoing review of their estate planning needs.

1. Estate Planning:
5 Ways
To
Engage With Your Clients
Gil Gordon CFP
estateplanningforlife.com.au

2. 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

3. 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!

4. 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.

5. 1 up, 1 across
& 2 down
How To:

6. 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

7. People First: 1 up, 1 across, 2 down

8. 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

9. Quick ‘how to’ for advisers: 1 up, 1 across, 2 down
Widowed, frail ,
physically dependant
Disabled
Financially dependant
No financial complexity (NFC)
NFC
NFC
Family Tree: 1 up, 1 across, 2 down
Step father Healthy
Divorce &
Inheritance Risk

10. 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

11. Quick ‘how to’ for advisers: 1 up, 1 across, 2 down
Widowed, frail ,
physically dependant
Disabled
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

12. 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

13. StorytellingHow To:

14. Ask about:
Storytelling
Setup &
Engagement
Dramatic
Event
Relax &
Reflect
Storytelling
Journey
Emotional

15. Ask about:
Storytelling
Facts
make us
think
Emotions
make us act

16. Ask about:
Storytelling
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

17. Ask about:
Storytelling
https://vimeo.com/85493206
One of the most popular Superbowl
commercials of all time

18. Common Problems
and solutions
How To:

19. 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!

20. 4 Reasons to review the Will
1. Tax
2. Divorce
3. Death
4. Asset Protection
The Right Legal Documents

21. 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

22. $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

23. 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

24. Divorce
What parents want
$
$0
$
$
$0
What parents are afraid of
$
Reason 2: Divorce

25. Divorce: a better way
$
Trust
Bloodline Beneficiaries
Trustee
Reason 2: Divorce

26. Death & Repartnering
What
parents
want
What they’re afraid of$
$
$ $
$
$0
$
Reason 3: Death

27. Death & Repartnering: a better way
Trust
Bloodline
Beneficiaries
Family appoints
the next trustee
$
$
Reason 3: Death

28. Bankruptcy & Legal Threat
Remember 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)

29. 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

30. 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

31. Partnering with…
The Lawyers!
How To:

32. Partnering With Legal Professionals
Referral 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

33. 33

34. 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

35. What is EPFL?
1. WITYEP
Survey
2. The
Information
That Matters
(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. 36
Dad’s had a stroke……
I have Power of Attorney……
Now what do I do..?

37. 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

38. The Information That Matters

39. The Information That Matters

40. The Information That Matters

41. The Information That Matters

42. Plus:
 Assets
 Liabilities
 Structures
 Insurances
 Legal Responsibilities
 Online identity
 Medical history
 etc
The Information That Matters

43. 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

44. 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

45. 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?
Crisis Management Plan

46. Crisis Management Plan

47. Crisis Management Plan

48. Crisis Management Plan

49. Crisis Management Plan

50. 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

51. 1. They care about their parents
2. They have children too….
3. They are curious
The Next Generation

52. 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

53. 1. The Right Legal Documents to protect your family
2. The Information That Matters
3. A Crisis Management Plan
4. Engage With Next Generation
5. Ongoing Review of your estate planning needs
6. No SoA and associated complexity
Client Value Proposition

54. 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

55. PricingHow To:

56. 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

57. 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...

58. linkedin.com/in/gordongil
gil.gordon@estateplanningforlife.com.au
@gordongil
02 49330100
eBook: www.estateplanningforlife.com.au
Contact

59. Thankyou, questions?