• Matt Brannelly

  • HONEY I LOST THE $5 M  TRUST .. and BY THE WAY OUR WILLS AREN’T VALID

     

    Trust you survived the big wet. On Thursday I ventured out to meet a new EP client referred from one of the firms I work with. I always impress upon clients the urgency involved , and a storm wasn’t going to delay me and here’s what I found.

     

    Both spouses are highly trained business and advisory  professionals.

    They have been very successful and thought most things were in order. I met them when dealing with their parents and they decided they should have a review done.

     

    What I found was 2 TIMEBOMBS waiting to go off and they would not have seen either coming. Fortunately, with my role in the accounting firm , they were provided the opportunity  for this review and the ability to get things rectified quickly. Otherwise they would have been none the wiser. Here’s is what I found:

     

     

    1. Wills

    • Made wills prior to marriage
    • Lived together for 10 years
    • wills  made invalid on marriage
    • Have 2  kids under  7

     

    2. Assets

     

     Family Trust

     

    Owns 3 properties value      $7 m        Debts $ 2.2 m .

     

    Husband

     

    House                                   $1.8 m    Debt $980 k

     

    Shares                                  $2.5 m

    Super                                    $200 k

     

    Total                                     $11 m     

     

    3. Family Trust : 2  Issues to consider

     

    Appointor is an ex lawyer .

     

    Need to replace Appointor as clients have no control currently.  Alternatives:

     

     

    4. Conclusion

     

    Current risks:

     

    • No  valid wills
    • Do not control trust with $7M of assets

     

    This is a great example of how providing an EP solution provides a very tangible client care outcome.  However the challenge for accounting firms is how to deliver it across their entire client base.  Continuing delays simply expose clients longer.

     

    The EP model I have developed delivers:

     

    • Certainty to the firm that this service is available
    • Fee recovery of $500 p hour
    • No impact on partner time

     

    As  a result, having met the client only yesterday , we have already sent our recommendations   and will be implementing next week.

     

    Should you like to discuss Copy_of_lady_planning.jpg