by cr

eatin

g luc

rativ

e opp

ortu

nities

Can you really theway?

agenda

agen

da

The future of your business

Costs involved

Glacier Liquidity tool Techniques

Soft issues

Estate administration

Wealth transition

Continuity, hello new clients!

why evenbother

doing this?

agenda

when

clien

ts fee

lne

glec

ted

Advisers spend about five times as much effort to bring on a new client as they do to keep an existing one, creating a huge incentive to keep clients “sticky”

agenda

“these boots are made for walking…”

Failure to understand goals and objectives – 51%

44% leave because of communication skills of advisor

25% leave because they feel taken for granted

when

clien

ts fee

lne

glec

ted

the wolvesare out

agendaLiabilities Accrual

claimsIncome

Tax

CGT Executor fees

Estate Duty

Provision WishesWealth

creation/preservation

taxes

& co

sts th

at ta

ke th

e ca

ke

agenda

igno

re th

is

Liabilities

•Bonds•Loan Accounts – NB

Accrual•Claim against estate•Maintenance claim

Income Tax

•Audit by SARS at death•Make provision for “final audit”

Increase time to administer the estate of the client

don’t

agendaCGT

• Death is a “trigger” event for CGT

• Pegging of estate for growth assets

Executor fees

• Only levied on assets the executor “

• Ask for discount

Estate duty

• Sec 3(3)(a) of the Estate duty act

• Possible change in 4A

stop r

epea

ting t

hesa

me

cost

s

agendaProvision

• Income provision for spouse – sec 4(q)(ii)

• Children’s education

• Maintenance from previous divorce?

Wishes

• Are you talking to your client about philanthropic actions in their communities?

• Donations to Trusts – R200,000 p.a.

Wealth preservation

• Business insurance

• Possible change in 4A

it’s rig

ht in

front

ofyo

ur e

yes

!we have

somethingfor you

agendaAssist you to determine if your client has enough cash in his estate to wind up the estate and to ensure that all heirs inherit what your client want them to inherit.

Marital Regime

•In community of property•Out of community of property (with accrual)•Out of community of property (without the accrual)

Policy Schedule

•Beneficiary nomination•No beneficiary nomination•Fund policies•3rd party owned policies

Assets & Liabilities

•Primary residence•Bequeaths to spouse•CGT calculation

Will

•What is bequeath to spouse•4Q deduction

Liquidity Tool

straig

ht an

d hon

est

answ

er

agenda

calcu

lating

esta

te d

uty

agenda

now

you c

an se

llth

e co

ver

techniques andother common

mistakes

agenda•Sec 4(q)•CGT and Estate duty benefits

Everything to spouse

•Minor beneficiaries•Testamentary trusts•Guardians

Children

•One-year wonder•MassingBeing fancy

techn

iques

inpl

anni

ng

soft issuesbig consequences

agendaDigital

executorship

Choosing the

executor

The first 3 months

Guardians Fund

small

choic

e m

assi

ve im

pact

creatingcontinuity

⧁ On average each estate has 2.5 beneficiaries

⧁ …and you have 350 clients⧁ Average age of clients at 65 and

average estate size is R7.5m⧁ Your potential executor fees are

R25,6m⧁ The value of your will book is R6,609m⧁ AND you get access to an additional

875 new clients with an asset value of R6,5bn !!!

Quick calculation 

 

   

  Value of a Signed Will

  Calculator       

  Estate Value R 7,500,000

  Executor fee (3.5% + VAT)   R 299,250

  Discount from Executor   R 0

  False 0%

  Share to Intermediary R 73,263

  Age 65

  Number of reviews ( 3 = more than 2) 3  Discount from Intermediary

0% False False  

 Net Present value of the signed will for intermediary R 18,884

 

   

Value of a Signed Will

Calculator     

Estate Value R 7,500,000

Executor fee (3.5% + VAT)   R 299,250

Discount from Executor   R 0False  

  0%

Share to Intermediary R 73,263

Age 65

Number of reviews ( 3 = more than 2) 1

Discount from Intermediary

0%False False  

Net Present value of the signed will for intermediary R 2,937

questions