Philanthropy discussion builds adviser trust

philanthropy

6 January 2016
| By Malavika |
image
image
expand image

Talking about philanthropy when constructing or reviewing a financial plan for clients can help advisers build trust and aid them in the regulator-required ‘know your client' process, according to Equity Trustees.

General manager, philanthropy, Tabitha Lovett, said advisers who had detailed discussions with clients about their philanthropic goals had a greater understanding of "what makes their clients tick", hence fulfilling the ‘know your client' requirement.

Advising clients on how to give in structured, tax effective ways, and discussing philanthropy with estate planning clients saw an increase in the amount of money directed towards charitable organisations, Lovett said.

"Our experience has been that one in five of all new wills written has contained a philanthropic intent, either a portion of an estate into an existing foundation or the creation of a new charitable trust or a charitable bequest," she said.

This was in line with research carried out in the UK, which showed that discussing philanthropy with estate planning clients increased giving by around 20 per cent.

There were three types of charity tools: private ancillary funds (PAFs), sub-funds with public ancillary funds (PUFs), which have lower start-up costs than a private one, or testamentary charitable trusts.

"Establishing a PUF provides all the benefits of a PAF but simplifies the administration and reduces costs as the expense of audits, tax reporting and administration are spread across the foundation as a whole, rather than by the individual sub-funds," Lovett said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 2 weeks ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

4 days 12 hours ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

3 weeks 4 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

4 weeks ago