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Similar to Sanlam - Senate Group Nov 2015
Sanlam - Senate Group Nov 2015
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- 2. agenda agenda The future of yourbusiness Costs involved Glacier Liquidity tool Techniques Soft issues Estate administration Wealth transition Continuity, hello new clients!
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- 4. agenda whenclientsfeel neglected Advisers spend aboutfive times as much effort to bring on a new client as they do to keep an existing one, creating a huge incentive to keep clients “sticky”
- 5. agenda “these boots are madefor walking…” Failure to understand goals and objectives – 51% 44% leave because of communication skills of advisor 25% leave because they feel taken for granted whenclientsfeel neglected
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- 7. agenda Liabilities Accrual claimsIncome Tax CGT Executor fees Estate Duty Provision Wishes Wealth creation/preservation taxes&coststhat takethecake
- 8. agenda ignorethis Liabilities • Bonds • Loan Accounts– NB Accrual • Claim against estate • Maintenance claim Income Tax • Audit by SARS at death • Make provision for “final audit” Increase time to administer the estate of the client don’t
- 9. agenda CGT • Death isa “trigger” event for CGT • Pegging of estate for growth assets Executor fees • Only levied on assets the executor “ • Ask for discount Estate duty • Sec 3(3)(a) of the Estate duty act • Possible change in 4A stoprepeatingthe samecosts
- 10. agenda Provision • Income provision for spouse– sec 4(q)(ii) • Children’s education • Maintenance from previous divorce? Wishes • Are you talking to your client about philanthropic actions in their communities? • Donations to Trusts – R200,000 p.a. Wealth preservation • Business insurance • Possible change in 4A it’srightinfrontof youreyes
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- 12. agenda Assist you todetermine if your client has enough cash in his estate to wind up the estate and to ensure that all heirs inherit what your client want them to inherit. Marital Regime •In community of property •Out of community of property (with accrual) •Out of community of property (without the accrual) Policy Schedule •Beneficiary nomination •No beneficiary nomination •Fund policies •3rd party owned policies Assets & Liabilities •Primary residence •Bequeaths to spouse •CGT calculation Will •What is bequeath to spouse •4Q deduction Liquidity Tool straightandhonest answer
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- 16. agenda • Sec 4(q) •CGT and Estate duty benefits Everything to spouse • Minor beneficiaries • Testamentary trusts • Guardians Children • One-year wonder • Massing Being fancy techniquesin planning
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- 18. agenda Digital executorship Choosing the executor The first3 months Guardians Fund smallchoice massiveimpact
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- 20. ⧁ On averageeach estate has 2.5 beneficiaries ⧁ …and you have 350 clients ⧁ Average age of clients at 65 and average estate size is R7.5m ⧁ Your potential executor fees are R25,6m ⧁ The value of your will book is R6,609m ⧁ AND you get access to an additional 875 new clients with an asset value of R6,5bn !!! Quick calculation Value of a Signed Will Calculator Estate Value R 7,500,000 Executor fee (3.5% + VAT) R 299,250 Discount from Executor R 0 False 0% Share to Intermediary R 73,263 Age 65 Number of reviews ( 3 = more than 2) 3 Discount from Intermediary 0% False False Net Present value of the signed will for intermediary R 18,884 Value of a Signed Will Calculator Estate Value R 7,500,000 Executor fee (3.5% + VAT) R 299,250 Discount from Executor R 0 False 0% Share to Intermediary R 73,263 Age 65 Number of reviews ( 3 = more than 2) 1 Discount from Intermediary 0% False False Net Present value of the signed will for intermediary R 2,937
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