Are your clients protected when the inevitable happens?

October 19, 2021by Jack Elcombe0

Ok, we all know what the “inevitable” means…
You know – when their Enduring Power of Attorney is no longer the valid Estate Planning document, and the Will takes over…
Yes – sadly, they are deceased.

With the wealth accumulated by the baby boomers, there is approximately $2 trillion in assets that is about to pass down the branches of our nation’s collective family tree.

Your clients’ millions are part of this number.

It is essential that the wealth you have amassed for your clients are correctly protected.

What are the four essential steps that your clients need to have in place to avoid having their estate contested, the value reduced, and being tied up for lengthy periods in probate?

  1. A current and valid Will
  2. The Executor knows they are the executor
  3. The Executor has access to the Will
  4. The Executor knows the testator’s (the person that has deceased) assets and understands what is required to protect them.

A well planned and executed Will have instructions on:

  1. What actually needs protecting?
  • Ensure you have a current list of all your client’s assets
  1. Who is entitled to the estate?

Be prepared (and have listed) for those business partners and/or eligible persons who feel they may be entitled to a share in the estate.

When it comes to challenging an estate, those who qualify are:

  • The spouse or de facto of the deceased
  • Former spouses
  • Children (biological or adopted)
  • Any person who was wholly or partly dependent on the deceased
  • Any person who was living in a close personal relationship with the deceased
  1. Why (for what reason) do they feel the right to challenge the current Will?

When Wills are challenged, the Family Provisions hearings typically take 10% of the value of the Estate in fees – creating unnecessary erosion of the estate.

So it is important to understand all reasons why the estate may be contested.

  1. How to mitigate the reason, risk or challenge?

It is the responses to this question that should be NOW be addressed within the Estate Plan.

At LGen, we have a common saying:
“There are three guarantees in life…

  1. Death
  2. Taxes, and
  3. Ex partners”

A well planned and executed Will is created with the worst-case scenario in mind… That the Will may ultimately be contested, and how to best protect the estate from those who feel entitled to it.

When LGen does a FREE assessment of your clients Will and Estate Plan, we find that 95% of people have massive gaps in protecting their estate.

Why?

Because the Will and Estate Planning process

  • is typically a transactional one (prescribed documents provided without the personal approach, evaluation, consideration or intense analysis required)
  • does not have a regular review process in place
  • lacks a comprehensive and current list of all assets
  • is deficient with informative instructions to the executors
  • has not considered those who may feel entitled to challenge the intentions and how to manage that

We all know that most Australians do not have a current and up to date Will or Estate Plan.

These Aussies ARE YOUR CLIENTS!

As their Adviser, YOU are in the best seat to change this.

Find out about how YOU can help YOUR CLIENTS with the LGen in house Estate Planning system.
We would love to chat about this with you.

We would love to chat about this with you.

Feel free to join us in our next conversation on

‘How to add an Estate Planning arm to your business.

REGISTER NOW

We look forward to seeing you online or chatting with you anytime.

With your clients best intentions in mind…

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