THE HOME OF THE PROFESSIONAL ADVISER Trusts me It’s straightforward Gerard Dodgson TEP, ACII, ASFA

transcript

THE HOME OF THE

PROFESSIONAL ADVISER

Trusts me It’s straightforward

Gerard Dodgson TEP, ACII, ASFA

Learning Outcomes

How can we motivate trust planning?

Why a trust?

How to choose which trust is best for your client?

Who should be the Trustees?

Who should be the Guardian?

‘In this world nothing can be said to be certain, except death and taxes.’

Benjamin Franklin (1706-90)

‘In this world nothing can be said to be certain, except death and taxes.’

Benjamin Franklin (1706-90)

Principles for Business

Principle 6: A firm must pay due regard to the interests of its customers and treat them fairly

Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly

What is good practice?

By following good practice you can uphold industry standards, enhance your own reputation and ensure customers get a fair deal.

Here are some examples of good practice:

•treat customers fairly•explain your products and services clearly so customers understand what is available and the charges they might need to pay•ensure your advertising is clear and not misleading•respond to complaints appropriately

Provides:-

Control

Protection

Flexibility

Behavioural science

People are generally more motivated to take an action to avoid a loss than to take the same action that will result in a gain

Broadly trusts can fall into two main types:-

Interest in possession – Bare, Vulnerable & IPDI;

Discretionary – DGT, Survivor

Why a trust? Why a will?

29.3 million of the UK adult population (58%) currently have no will

More than two thirds (69%) of UK adults in their 40s haven’t written a

will, rising from 60% in 2009

Source: Unbiased.co.uk and Certainty.co.uk 07/10/2013

Why a trust? Why a will?

Source: Unbiased.co.uk and Certainty.co.uk 07/10/2013

Life Assurance

£650,000 £300,000

Life Assurance in trust?

£300,000

Life Assurance

Did we get it right?

Life Assurance

How to choose which trust is best foryour client?

Life Assurance in Trust?

Which Trust?

Life Assurance

What do you want the trust to do?£

If the surviving partner dies with 31 days, the trustees will hold the proceeds for the beneficiaries,the capital does not form part of the deceased’s estate

Life Assurance

What do you want the trust to do?

Life Assurance

What do you want the trust to do?

Estate

Life Assurance

Who should be the Trustees?

Life Assurance

Who should be the Guardian?

Guardian’s Allowance is paid at the rate of £15.90 each week for each qualifying child

Life Assurance

Which life policies should be in trust?

Life Assurance

Which life policies should be in trust?

Life Assurance

Using life policies held under trust

Where a client has had children from a previous marriage, they may wish to provide for the needs of their current spouse, whilst also protecting the interest of those children.

Life Assurance

To alleviate concerns over the marriage or divorce of a beneficiary.

Life Assurance

Where intended beneficiaries are too young to receive a lump sum.

Life Assurance

To protect the interest of a vulnerable beneficiary, or one who is mentally incapable or has special need.

Life Assurance

To protect against the future bankruptcy of a beneficiary.

Life Assurance

Handset Questions1.Given all you have seen today on behavioural science, what if any further action will you take?

1 Visit A4A New Thinking Site

2 Visit A4A brilliant business ideas

3 Speak to my consultant

4 All of the above

5 None

Handset Questions

2. What percentage of your business is currently written under trust?

2. 1-30%

3. 31-60%

4. 60% +

Handset Questions

3. What if any impact do CI claims figures have on your recommendation?

1.None

2. Some

3. Always

4. It is just one factor which I take into account

This information has not been approved for use with customers and is based on Aviva’s interpretation of current law and legislation, and our understanding of HM Revenue & Customs (HMRC) practice as at May 2014. It is provided for general information purposes only and should not be relied upon in place of legal or other professional advice. Both the law and HMRC practice will change from time to time and our interpretation may be subject to challenge by HMRC or other regulatory body. Aviva cannot act as legal adviser for you or your clients. You should always seek appropriate legal or other professional advice.

Aviva Life and Pensions UK Limited. Registered in England No 3253947. 2 Rougier Street York, YO90 1UU.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authorityand the Prudential Regulation Authority Firm Reference Number 185896.www.aviva.co.uk

THE HOME OF THE PROFESSIONAL ADVISER Trusts me It’s straightforward Gerard Dodgson TEP, ACII, ASFA

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