Estate planning not to be overlooked
Estate planning is one of the most important areas of a financial plan but is often overlooked by advisers, according to AXA national development manager Steve Currie.
“Estate planning is the cornerstone of financial planning as it underpins everything you need,” Currie explained.
“[Without it,] if some form of tragedy happened [to an adviser’s client,] a lot of the plan that had been set in place wouldn’t come to fruition.”
Speaking at Professional Investment Services’ 11th annual conference, Currie said every client should at least have a valid will, reviewed every three years for major changes such as marriage, divorce, birth of a child or grandchild and on buying or selling business assets.
However, he said income insurance, asset protection and business succession issues were also important components of estate planning, making it necessary for advisers to work closely with lawyers and accountants in this area of advice.
“No matter what your personal circumstances are, estate planning aims to place your financial affairs on the strongest possible foundation, maximising effectiveness in the transfer of wealth to your beneficiaries,” Currie said.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.