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The vast wealth transfer
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Estate planning, philanthropy and the impending vast wealth transfer: What financial advisers need to know, writes Patrick Gamble, CEO, Perpetual Guardian Group.
lot has changed in the legislative landscape of trusts in recent months, and many of the changes directly affect those providing financial advice and their clients. Here we present the mustknow information for financial advisers navigating the altered terrain:
Do financial advisers have an obligation to introduce estate planning in discussions with clients? Legally, no – but there is a strong case that any substantial conversation about long-term financial planning should include estate planning. This goes to people’s objectives for their retirement, how they want their loved ones to be cared for, and whether they want to 24 | ASSET 04 | 2021
leave a legacy beyond their family, such as through a charitable trust. Certainly, anyone who is seeking the services of a financial adviser will likely be in a position to need a Will (if they don’t already have one); whether they are buying a risk insurance policy such as life insurance, taking out a home loan, or simply have $15,000 or more in assets, including KiwiSaver, a Will is an essential document to spell out their wishes and spare their loved ones the trauma and expense of going through the courts in the event of intestacy. It is also crucial for those with children, addressing issues of guardianship. If someone dies intestate, the law determines who will inherit their property and possessions, and the size of the estate will need to be determined, an administrator chosen, and court
‘Given the cost of indemnity insurance, along with the other risks arising in the new legislative environment, is it worth continuing as trustee?’ authority for administration obtained before the estate can be administered and distributed. This can be a timeconsuming and costly process which is avoidable if a Will is in place.
