sanlam - senate group nov 2015
TRANSCRIPT
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