Estate planning cuts through the cycles

Recent share market falls underscore the need for financial planners to include estate planning in their portfolio of services, says lawyer Michael Fitzpatrick.

“Too many financial planners neglect estate planning when it should be at the heart of client service,” he says.

“Without an estate planning service, financial planners aren’t doing the whole job for their clients, and have no real strategy to navigate through good times and bad.”

Mr Fitzpatrick says that with superannuation funds preparing to post their worst returns in 20 years, having had $20 billion wiped off their value, planners can expect a grilling by their pre and post retiree clients.

“One question they can almost certainly expect to be asked is, ‘why am I paying fees when my returns are negative’.

“Add to this the fact that many clients have a propensity to generosity in good times, gifting money to their families and leaving very little for themselves when the inevitable cyclical downturn occurs.

“An estate plan structures clients’ affairs during their lifetime to take account of events like share market falls. It also takes account of a host of other issues like physical incapacity, taxation and how to ensure wealth passes smoothly on death to intended beneficiaries.

“An holistic service that includes these important elements and does not depend on the performance of funds will demonstrate value and better secure client loyalty.”

Michael Fitzpatrick, principal of Clarendene Estate Planning, will conduct a workshop at the Kaplan FAR08 Financial Adviser Roadshow, to be held on 19-20 August at the Harbours Edge Event Centre, Darling Harbour, Sydney. The event will focus on pre and post retiree and estate planning solutions.

Website: www.iir.com.au/far

Financial advisers to benefit from new conference format

The Kaplan Professional Series of conferences for financial advisers and accountants have been overhauled to make them more relevant and practical.

A major change is more time allocated to speaker presentations and workshops for more thorough treatment of topics.

There will also be more emphasis on hands-on learning sessions such as workshops, panel discussions and case studies.

And anything remotely resembling a sales pitch will be outlawed.

The conferences will commence with a workshop at Sydney’s Harbour’s Edge Events Centre on 19-20 August. Money Management will be the official publication.

Michael Fitzpatrick, one of the key Kaplan Professional speakers said: “I’m excited about the new format.

“Having attended and given countless seminars over the years I’ve often felt frustrated by having to fit in a 40-minute time slot.

“For a lot of the areas and issues, you just can’t get into the meat of a subject in less than an hour and a half.

“It’s important to do justice to important issues, to give time where it really is deserved, especially when you’ve got a good speaker.”

There will be national conferences on self managed superannuation funds (SMSFs), Tax Planning Strategies and Advising on Risk and Insurance.

There will also be the Kaplan Professional Financial Adviser’s Roadshow, workshops that will address estate planning and pre- and post-retirement planning.

The aim is to hold them in various states for the convenience of financial planners. The first, at Sydney’s Harbour’s Edge Events Centre on 19-20 August, is to be chaired by Mike Taylor, the Managing Editor of Money Management.

Mr Fitzpatrick said: “The workshop on death and taxes will be an exciting opportunity for financial advisers or those responsible for providing financial advice to the modern family.

“It will enable them to come to grips with the way in which modern death duties, and back door taxes like capital gains tax, can intrude significantly into the wealth of widows and children of deceased clients.

“The workshop will allow a close hands-on approach to how to identify these taxes, how they may apply in individual cases, and what strategies are available to the adviser to help deal with and minimize these taxes.

“It’s a crucial role for advisers. Unless they know what they’re doing, they won’t be able to do their job properly.”

More information: www.iir.com.au/far

Nigel Dique, Media Officer
Telephone: 02 9080 4108
nigel.dique@informa.com.au