The document discusses estate planning and provides information about death statistics in Australia. It notes that the leading causes of death vary by age, with heart disease, dementia, and Alzheimer's being top causes for those over age 75. Estate planning is important given projections that the number of Australians over age 65 will double by 2055 and 40% of Australians do not have a will. The document uses a fictional "Stark Family" as an example to illustrate different estate planning structures like trusts, superannuation, and testamentary trusts. It emphasizes that financial advisers have an obligation to consider clients' best interests, which may include providing estate planning advice or referring to an estate planning lawyer. The last pages demonstrate an estate planning software system advisers

1. Wednesdays With Redchip
WELCOMETO

2. Estate Planning for
Advisers
PLAYNA HO
PlaynaH@redchip.com.au

3. Are you ready for the Endgame?

4. Death
160,909people
died in Australia (2017)
52%
Male
48%
Female
Heart
Disease
Dementia
Cerebrovascular
Disease
(inc. Stroke)
Respiratory
Disease (inc.
Lung Cancer)
Leading causesof
death (2017) are:

5. Leading
causesof
death by age:
Ages 75 and older:
heart disease, dementia, Alzheimer’s disease
Ages 65-74:
lung cancer, heart disease
Ages 45-64:
heart disease, lung cancer
Ages 25-44:
suicide, accidental poisoning
Ages 15-24:
suicide, land transport accidents
Ages 1-14:
land transport accidents
Infants:
perinatal and congenital conditions

6. Why?
$2.4
trillion
3.3 million
Australians aged 65
and over in 2013
and that will
double by 2055
40%
of Australians do
not have a Will
1. Zurich 2015 Intergenerational Report
2. ING DIRECT The Truth About Gen X and Gen Y 2016
3. Money Management, Laying Estate Planning Fears to Rest 2017

7. Avoid Civil War:
• Dying intestate:
• Costs
• Delays
• Disappointed
beneficiaries
• Estate litigation

8. The Stark Family
Tony Pepper

9. Penthouse
Shares
Life Insurance Policy
Shares
Tony Pepper
Stark
Family
Super
Fund
Trustees: Tony
& Pepper
Members:Tony & Pepper
Structures
Stark
Family
Trust
Stark Enterprise
Pty Ltd
Director:Tony
Shareholders: Tony
Primary Beneficiaries:Tony, Pepper
Principal:Tony
Stark Industries
Pty Ltd
Director:Tony
Shareholders: Stark
Enterprise Pty Ltd
50%
Tony50%

10. Personal Assets
Slide 10
Penthouse
Shares
Life Insurance Policy
Shares
Tony Pepper

11. Companies
Slide 11
Stark
Family
Trust
Stark Enterprise
Pty Ltd
Director:Tony
Shareholders: Tony
Primary Beneficiaries:Tony, Pepper
Principal:Tony
Stark Industries
Pty Ltd
Director:Tony
Shareholders: Stark
Enterprise Pty Ltd
50%
Tony50%

12. Trusts
Slide 12
• Read theTrust Deed
• Passing on control
• Powers of theTrustee and
Principal/ Appointor
Stark
Family
Trust
Stark Enterprise
Pty Ltd
Director:Tony
Shareholders: Tony
Primary Beneficiaries:Tony, Pepper
Principal:Tony

13. Superannuation
Slide 13
• Read the Super Deed
• Binding Death Benefit Nomination
• Who are Super Dependents
• Passing control
Stark
Family
Super
Fund
Trustees: Tony
& Pepper
Members:Tony & Pepper

14. TestamentaryTrusts
Tony Pepper
Morgan
5 years old
Morgan Stark
Testamentary
Trust
Trustee: Happy Hogan
Principal: James Rhodes
Primary Beneficiary: Morgan Stark
• Protect inheritance for
“at risk” beneficiaries
• Children
• Creditors/bankruptcy
• Mismanagement
• Family court proceedings
• Tax savings

15. Best Interests Duty
“The provider must act in the best
interests of the client in relation to
the advice.”
Section 961B (1) Corporations Act

16. Sec 961B (2): Safe Harbour provisions
ASIC Regulatory Guide 175
RG 175.333
Recommendations about a financial product may not fully meet the
client’s relevant circumstances in all cases. In some cases, complying
with the best interests duty will require an advice provider to give the
client advice that is not product specific—for example, advice on debt
levels, Estate Planning or Centrelink benefits.
RG 175.382
The conflicts priority rule means that:…
(d) an advice provider must recommend non-financial product
solutions relevant to the client’s situation, where appropriate, even if
this means the client is less likely to need financial advice in the future
(e.g. advice on debt reduction, Estate Planning and/or Centrelink
benefits).
Best Interests Duty

17. From ASIC’s perspective:
1. Your obligations extend beyond just giving
financial advice and advice about financial
products
2. Your obligations may include giving Estate
Planning advice
Slide 17

19. Estate Planning for
Your Business
IANTINDALE
IanT@redchip.com.au

20. What’s in it for you?
• Enhance client relationships
• Introduce new revenue stream – you
can charge your clients to assist them
through the process
• Meet the next generation

21. The Estate Planning Process
Slide 21
Step 1
Data Collection
Step 2
Collate Data
Step 3
Devise Strategy
Step 4
Prepare and finalise
Estate documents

22. You are the client’s best option
• Already familiar with clients’ personal
circumstances as the trusted adviser
• They don’t like talking to lawyers
• No regulation prohibiting you from talking
about Estate Planning
• But don’t give legal advice
Slide 22

23. What is legal advice?
Slide 23
Step Action
Is it legal
advice?
Step 1
Data Collection
Collecting client information is not legal advice – advisers
do this every day.
No
Step 2
Collate Data
Collating information and preparing a report to be used by a
lawyer is not the provision of legal advice.
No
Step 3
Devise Strategy
Making recommendations about legal documents the client
may require is legal advice.
Discussing what aTestamentaryTrustWill is and how it
works is not legal advice, however telling your clients they
need one is legal advice.
Referring clients to a lawyer and supplying an Estate Plan
draft is not giving legal advice.
Maybe
Step 4
Finalise
Documentation
PreparingWills and other Estate Planning documents is
giving legal advice
Yes

24. Approaching Estate Planning
• Complex issues and technical solutions but a simple process
• Build process inside your practice
• Have a dedicated client meeting to discuss Estate Planning
issues
• Have checklists and a template Estate Planning document
• Build a relationship with a lawyer & get them involved early
• Understand the value you bring and know how you can
explain it to your client
• Decide your financial model and how you can recover costs
Slide 24

25. To do’s
• Choose a lawyer that specialises in Estate Planning.
➢ Ability to prepareWills does not mean they specialise in
Estate Planning.
• Before providing information to the lawyer, get an authority
from client to share their personal information.
• Get a client authority directing lawyer to copy you in on
relevant correspondence and provide copies of draft and
final Estate Planning documents.
• Arrange initial meeting between client, lawyer and yourself.
• Project manage the process until completion.
Slide 25

26. Estate Planning software
• Your Estate Planning practice needs to be process
driven to be cost-effective.
• Have systems in place to make this as easy for you
and your staff as possible.
• Some advisers have built their own processes and
templates for the plans they prepare.
• The smart advisers subscribe to
Slide 26

27. Estate Planning with Yodal
Step 1
Complete the
Needs Assessment
Step 2
Quote &
Payment
Step 3
Collect Data in
the Questionnaire
Step 4
Send to Lawyer

28. Step 1
Complete the
Needs Assessment
Estate Planning with Yodal

30. Step 1
Complete the
Needs Assessment
Step 2
Quote &
Payment
Step 3
Collect Data in
the Questionnaire
Step 4
Send to Lawyer
Estate Planning with Yodal

31. Step 2
Quote &
Payment
Estate Planning with Yodal

33. Step 1
Complete the
Needs Assessment
Step 2
Quote &
Payment
Step 3
Collect Data in
the Questionnaire
Step 4
Send to Lawyer
Estate Planning with Yodal

34. Step 3
Collect Data in
the Questionnaire
Estate Planning with Yodal

36. Step 1
Complete the
Needs Assessment
Step 2
Quote &
Payment
Step 3
Collect Data in
the Questionnaire
Step 4
Send to Lawyer
Estate Planning with Yodal

37. Step 4
Send to Lawyer
Estate Planning with Yodal

38. Once sent to the
lawyer they can log
in and generate
draft documents

39. Once sent to the
lawyer they can log
in and generate
draft documents

40. Because
everyone
needs a plan.

41. Questions?
Slide 41

42. 17 July:
Property & BusinessTransactions
NEXT EVENTS

43. Wednesdays With Redchip
THANKS FOR ATTENDING