Advisers need to focus clients on estate planning
Financial advisers are being urged to educate their clients about the importance of estate planning.
Speaking at the Association of Financial Advisers' National Road Show in Sydney yesterday, AMP head of risk technical strategies, Chris Kirby, warned advisers that sis dependents "come out of the woodwork" when clients pass away.
"As an industry we don't do this well," he said.
"One-in-four complaints made to the Super Complaints Tribunal each and every year is related to the distribution of death benefits through superannuation.
"We do not educate our clients on the distribution of the wealth we help to create. Good estate planning starts with unearthing and understanding your complex client relationships."
Kirby told delegates that it was important that advisers identify who the client wants to receive benefits, and who they do not want benefits to go to. He said it was important to identify who was sis dependent and who was likely to cause mischief.
"You've got to ask these questions, because if you don't the trustee of a retail super fund will," he said.
