25/02/2014

“Alice came to a fork in the road. 'Which road do I take?' she asked.
'Where do you want to go?' responded the Cheshire Cat.
'I don't know,' Alice answered.
'Then,' said the Cat, 'it doesn't matter.”

― Lewis Carroll, Alice in Wonderland

Whether you’re an adviser wanting to help your client with their estate planning or a person keen to get some good estate planning advice for yourself, it is crucial that you start with clear and informed instructions.

And, just as Alice found out, you won’t be able to work out which estate planning pathway to take until you have worked out which way you want to go.

The key to both is good ‘fact finding’: the efficient gathering of all the relevant details the client needs to provide in order that they can then be informed of the best estate planning choices.

What constitutes good fact finding?  At least the following:

Advice

The client doesn’t know what they don’t know so in order for them to provide informed instructions they need some advice about the choices and where they lead.

• Why are Wills urgent?
• Who could challenge my Will?
• Who should be my Executor?
• What’s a testamentary discretionary trust?
• What do I do about my super?
• Who will run my business?
• What if my spouse re-marries?

These are just a few of the many issues that a person needs to understand in order to make decisions about their estate planning and give good instructions to their adviser.

Structure

Gathering information from a client about their estate planning needs to be done methodically to ensure nothing is missed.

• Have you ever lived with someone who was financially dependent on you?
• Do you have a family trust or just a discretionary trust and what’s the difference?
• Should you consider an anti-detriment payment?
• Would a gift through the Will upset someone’s social security entitlements?
• How will your Executor protect your online identity and access tools?

Unusual questions like these should be prompted by a structured instruction form that ensures no part of the estate planning is overlooked.

Detail

The courts have held that “it is universally good practice to ask the testator for a list of his assets and liabilities” to confirm how they will be dealt with, how the Will should be prepared and whether the person is competent to make their Will in the first place.

Structured fact finding allows the adviser to ask the right questions and the client to provide all the right instructions.  And like their client, the adviser doesn’t know what they don’t know and can’t provide good estate planning without all the facts.

Later this month Townsends will commence beta-testing our latest online estate planning fact finder.  Eighty seven (87) pages of hard copy fact finder have been converted into an online version that makes the process quicker and more directed.  Almost 50 Advice Notes inform both the adviser and their client about the important things that need to be considered in respect of each of the important topic areas.

The result will be a document that the adviser can use to prepare the estate plan and that will constitute an important record of the process.  Estate planning documents can be prepared by Townsends or a lawyer of the client’s choice.

Access to this comprehensive online fact finder that provides the advice, structure and detail so necessary as the basis for good estate planning will only be available to selected advisers.  To register your interest, including if you are prepared to assist in beta-testing the online fact finder, please email info@townsendslaw.com.au with the subject line ‘Fact Finder Registration’.