ch.18 - 1 Solutions by Michael Perkins and Robert Monahan...

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Unformatted text preview: 1 Solutions by Michael Perkins and Robert Monahan CHAPTER 18 ESTATE PLANNING — CORE PRINCIPLES AND PRACTICE Solutions to Questions Question 1: What are the initial nine practices the estate planner needs to follow to deliver the estate planning engagement? The nine practices in delivering the estate planning engagement: 1 Identify the client’s objectives, needs and values that have estate planning implications. 2 Identify information required for the estate plan. 3 Identifies the client’s legal issues and any other issues outside the core competence of the financial planner that affect the estate plan and creates sub-plans to address those issues. 4 Determines the client’s attributes and level of financial, social and business sophistication. 5 Identifies material changes in the client’s personal and financial situation of concern to the client. 6 Prepares information to enable analysis. 7 Conducts analysis and synthesises solutions. 8 Presents solutions and assists clients to evaluate choices, assisted by other professionals as needed. 9 Once the client decides on the estate administration plan, the adviser supports the implementation and review of the plan or as appropriate to the case. Question 2: How can individuals control their wealth? Individuals control their wealth either directly through their direct, personal ownership or through intermediate structures or arrangements such as companies, trusts, partnerships, joint ventures or other comparable enterprises. Estate Asset Likely Decision-maker Likely Governing Document Testamentary Asset, eg solely owned asset Willmaker Will Non Testamentary Asset Legal owner of property, eg company or trustee Governing document of estate structure © 2011 Reed International Books Australia Pty Limited trading as LexisNexis. Permission to download and make copies for classroom use is granted. Reproducing or distributing any material from this website for any other purpose requires written permission from the Publisher. © 2010 Reed International Books Australia Pty Limited trading as LexisNexis. Ancillary for Financial Planning in Sustralia 4ed - Taylor, Juchau, Houterman 2 Surviving joint owner Surviving joint owner’s Will Life, ‘TPD’, Trauma or other Insurance Policy owner or nominated beneficiary Insurance Policy Superannuation/Allocated Pension/ Self-managed Superannuation Fund (binding nomination) Fund member Nomination Superannuation/Allocated Pension (no binding nomination) Fund trustee Trust Deed or Terms of Annuity Self-managed Superannuation Fund (no binding nomination) Surviving member(s), in conjunction with Executor Trust Deed Family Trust Trustee or Directors of Trustee company Trust Deed Question 3: One of the prime objectives of the client is to protect assets. Why do assets require protection?...
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ch.18 - 1 Solutions by Michael Perkins and Robert Monahan...

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