Estate planning just another insurance policy
People need to treat estate planning like any other insurance policy, according to Equity Trustees senior manager for estate planning Anna Hacker.
“The will is an insurance of sorts, it covers you just in case,” she said.
An estate plan would also insure against any damaging fight with non-relatives over the assets of the deceased, according to Hacker.
Hacker said she had seen many scenarios of potential or informal partners causing problems by trying to claim part of the deceased’s assets.
Additionally, younger people especially may have several superannuation accounts that add up to a bigger estate than they think they have, she said.
Hacker warned that advisers needed to take a more proactive role to ensure their clients have an estate plan in place as well as making sure they have a will.
Advisers often ‘tick the box’ on whether clients have a will, but the question should really include whether they have a proper estate plan, Hacker said.
“Someone could have a will that is written on the back of cereal box, and it’s not really enough to ask,” she said.
Planners could use methods such as superannuation advice to gain the face-to-face time with younger people that other professions involved in estate planning – like lawyers – didn’t have the ability to do, she said.
Recommended for you
Two law firms have highlighted licensees’ responsibility to ensure they have sufficient cyber security measures in light of the enforcement action against Fortnum Private Wealth.
A former director has pleaded guilty to providing financial product advice without holding an AFSL which saw almost $2 million transferred to him.
Commonwealth Private Limited, a subsidiary of Commonwealth Bank of Australia, has launched a wholesale offering with the help of JPMAM.
Shaw and Partners’ new national head of private wealth believes the biggest challenge for financial advisers right now is being able to deliver efficient advice delivery amid a complex regulatory environment and growing investment universe.
