Estate planning is the ‘new black' for many advisers. Indeed, adviser facilitated estate planning is one of the very few areas of the law where advisers and clients can work collaboratively and constructively. View’s web-based estate planning platform is widely recognised as the solution of choice by leading advisers. This session will explore the key ways financial advisers, accountants, risk advisers and other lawyers you can leverage View’s platform to radically improve their estate planning offerings – and in turn deliver client solutions that simultaneously create immediately profitable income streams for referrers. This webinar will build on and explore in detail some of the estate planning strategies mentioned briefly in our 2016 adviser facilitation webinars. There is no need for you to have attended the previous webinars to get value from this webinar. For those who did attend the 2016 webinars, the vast majority of content in this webinar will be new. The webinar recording is uploaded to our website - https://viewlegal.com.au/recorded-webinars/ under the heading ‘Free recorded webinars

1. Patrick Ellwood, Director
Tara Lucke, Director of Adviser Solutions
22 March 2017
ADVISER FACILITATED
ESTATE PLANNING –
EVERYTHING YOU NEED
TO KNOW TO DELIVER
EXCEPTIONAL VALUE

2. Overview
Estate planning toolkit1
Adding value as a facilitator2
Interactive case study examples3
Tips for young players4

3. How Are We Different?
Relationship driven
Wholesale – not retail1
Compliance focus2
Technology3
Quality4
Upfront service guaranteed pricing5
6

4. View Legal Adviser Solution Platforms

6. IT’S NOT MEANT
TO BE HARD

7. Start with WHY1
Use estate planning to position wealth advice2
Increased revenue from risk and other advice3
Intergenerational advice opportunities4
Solutions focused, not product focused5
Why are we so Passionate?

31. TIPS FOR FACILITATING

32. Estate Planning Documents
After you have passed away1
While you are alive but if you have lost capacity or are out
of the State/Country: Powers of attorney
2
Don’t forget superannuation and life insurance nominations3
– Will
– Memo of directions – optional, morally binding, update yourself
– Financial matters
– Medical and lifestyle matters

33. I Love You Approach
Debts
Assets
Beneficiaries
Estate

34. No Testamentary Trust
Bankruptcy
Estate Challenge
Spendthrift
Divorce
Tax on income




Simplicity
Cost



✓✗

35. Testamentary Trust Approach
Assets
Estate
Trustee
TT
Beneficiaries

36. Testamentary Trust
Estate Challenge Bankruptcy
Spendthrift
Divorce
Tax on income




✓✗

37. A TT will be appropriate where:
Children1
Asset protection important2
Tax flexibility important3
Assets in estate sufficient to justify extra administration to
access tax and asset protection advantages (don’t forget life
insurance and super!)
4
No children but contemplating children in future5
When in doubt, use a TT!

38. How many Testamentary Trusts?
Single TT Multiple TTs
Some or all the children are minors All the children are adults or close to being adults
Asset protection is critical
Asset protection is important but autonomy for each
child is more important
Children are intended to be the custodians of wealth
for next generation
Children should have autonomy over their
inheritance
Assets are difficult to divide between multiple trusts Assets can easily be divided between multiple trusts
The relationship between children is good, and it is
practical for them to jointly manage the trust
Poor relationhip between some or all children means
it would be difficult to manage a single trust
Children in same life cycle with their own families
Children are in different life cycles with their own
families
Same control mechanism is appropriate for all
children
Different children should have different control
mechanisms over their inheritance
Children are in the same country and can easily
manage the trust together
Children are living in different countries
Risk profiles of children are similar Children have vastly different risk profiles

39. If a couple, when should TT start?
Option Use if:
Only after both clients
have died
• Older couple with grown up children
• Majority of assets are held as joint tenants, superannuation or in a
trust
• No grandchildren
• Spouse is not in a high-risk occupation
• No need for surviving spouse’s control over assets to be limited
• Establishing multiple TTs after both passed
On death of the first
spouse
• If a young couple with minor children
• If an older couple with adult children, TT should come into operation
in first instance if:
– Significant assets can pass into the TT on death of first spouse
– Asset protection is important to surviving spouse
– There are grandchildren where it would be useful to stream
income to them from the TT
– Surviving spouse is in a high-risk occupation
– Don’t want assets to pass under surviving spouse’s will

40. Estate
Trustee
TT
Beneficiaries
Assets
Receives assets personally e.g.
• Assets held as joint tenants
• Superannuation
• Joint bank accounts
Receives assets as trustee for TT e.g.
• Life insurance
• Assets owned 100% by will maker

41. Assets
Estate
TT
Beneficiaries
Trustee
Surviving spouse
receives all assets
personally
All assets held via TT after
both spouses have passed

42. Estate
Trustee
TT #1
Beneficiaries
Assets
Receives assets personally e.g.
• Assets held as joint tenants
• Superannuation
• Joint bank accounts
Estate
TT #2
Beneficiaries
Estate
TT #3
Beneficiaries
TrusteeTrustee

43. Assets
Estate
Surviving spouse
receives all assets
personally
Estate
Trustee
TT #1
Beneficiaries
Estate
TT #2
Beneficiaries
Estate
TT #3
Beneficiaries
TrusteeTrustee

44. Independent Trustee for single TT
Trust Beneficiaries
Testamentary
Trust
Trustee
Primary beneficiaries
Children, grandchildren and sometimes
willmakers’ spouse
1
Secondary beneficiaries
Siblings, parents, nieces and nephews,
aunts and uncles
2
Tertiary beneficiaries
Trusts, companies, nominated charities
3

45. Independent back up Trustee
Where:
– Back up trustee is also a secondary beneficiary and manages TT for benefit
of primary beneficiaries
– If several children are trustees and beneficiaries of the TT, and one child
dies, leaving children of their own
Tara and Jayne are trustees of the Lucke TT. If Jayne dies, Tara should
manage the TT equally for herself and Jayne’s children. However, there is
nothing preventing Tara from distributing the TT assets to herself solely,
excluding her nieces and nephews if Tara is the sole trustee.


46. Mirror image for couples
Couples with children should have the
same financial controllers and guardians
for minors
Executors, trustees and financial attorneys
should be the same so there is consistent
management of finances for children
regardless of how assets are held
1
2
$
Be careful when nominating couples –
what happens if they divorce or one dies?
3

47. Robust Succession for Executors and Trustees
For couples with children, consider having at least two
financial controllers
1
Shares responsibility2
Keeps trustees accountable3
Back up plan if someone is acting out of character or has unexpected
life event
4
Each side of the family has a seat at the table5
Consider second level successors to fill vacancy and maintain two
controllers at all times
6

48. How do children obtain control of TT?
Memo of directions versus hardwire into the will1
Balance flexibility versus certainty2
Memo of directions:3
– Morally binding only
– Give guidance on value based decisions
– Empower people will maker trusts to assess appropriate
circumstances at the relevant time
– Will maker can amend themselves over time

49. Do you need a principal?
Principal is also known as an appointor or guardian1
Principal is the ultimate controller of the trust, as they can unilaterally
change the trustee
2
Option Use if:
Use a principal
• There will be independent trustees managing the trust for minor
children
• A change of control is anticipated in the future
• A staged succession plan would be useful, e.g current controllers
can retire as trustees but retain their role as principal, to
supervise management of the trust
• Want someone to have a supervisory role without involvement in
day to day management of the trust
No principal
• Simplicity is preferred e.g. all control is centralised with the
trustee
• Trustees and principal would be the same people for foreseeable
future

50. Use full names and complete addresses
Don’t forget back ups
Triple check spelling
Don’t use CAPS
Include AKA names
Some common issues
1
2
3
4
5

51. Calls to action
Have the conversations now1
Audit even if they appear 2017 compliant2
Level of specialisation unique in the market3
Truly leverage being the trusted adviser4
War stories5
Immediate opportunities even if an estate plan is 2017 compliant
and health excellent
6

53. THANK YOU
Patrick Ellwood
Director
Mobile: 0400 503 111
Email: patrick.ellwood@viewlegal.com.au
Website: http://www.viewlegal.com.au/
Blog: http://www.blog.viewlegal.com.au/
Linked in: https://au.linkedin.com/pub/patrick-ellwood/96/625/348
The material contained in this presentation is based either on information derived from our proprietary business diagnostics (including research) or from
other sources within the market, which we believe to be reliable and accurate. It is general in nature and does not constitute specific advice. Business
Health makes no representation or warranty as to the validity, relevance or accuracy of this information as it pertains to any specific practice or business.
Proprietary & Confidential

54. THANK YOU
Tara Lucke
Director of Adviser Solutions
Mobile: 0417 578 150
Email: tara.lucke@viewlegal.com.au
Website: http://www.viewlegal.com.au/
Blog: http://www.blog.viewlegal.com.au/
Twitter: https://twitter.com/tlucke1
Linked in: https://au.linkedin.com/pub/tara-lucke/60/1bb/532
The material contained in this presentation is based either on information derived from our proprietary business diagnostics (including research) or from
other sources within the market, which we believe to be reliable and accurate. It is general in nature and does not constitute specific advice. Business
Health makes no representation or warranty as to the validity, relevance or accuracy of this information as it pertains to any specific practice or business.
Proprietary & Confidential