MDRT annual meeting update: Roadblocks to family wealth planning and their solutions

Roadblocks to family wealth planning and their solutions What’s on the mind of one of Canada’s most experienced insurance advisors? (June 24, 2003) In a packed estate planning seminar at the 2003 Million Dollar Round Table meeting in Las Vegas, a show of hands revealed that more than half of the 800 or so attendees […]

By Sheila Avari | June 24, 2003 | Last updated on June 24, 2003
3 min read
  • Roadblocks to family wealth planning and their solutions
  • Canadian advisors find value in conference’s non-financial elements
  • And the survey says… income affects attitude
  • Best practices attract the masses
  • BONUS TOOL: Advisor.ca time management worksheet Back to MDRT Annual meeting coverage main page

    To overcome estate planning obstacles, the Gallos’ reommended that advisors let the personal issues outweigh the technical ones, come across in a non-threatening way, have more in-person contact and master active and patient listening.

    In addition, knowing your clients’ money personality can help you create a plan for tackling sensitive estate planning issues. Jon explained that people have multifaceted relationships with money and that each person develops a unique relationship with money in three separate dimensions: acquisition, use and management.

    Acquisition deals with how your client gets money. For example, if your client is a successful entrepreneur whose life goal is creating and selling new business, acquisition is likely more important. Encourage such clients to think in terms of the family’s consolidated financial statement, Jon suggested. Is it important that increases in net worth from newly acquired business be reflected on their balance sheet or a consolidated financial statement? This question can lead to techniques to divert future wealth to younger generations through partnerships.

    Use describes how your client saves or spends. At one end is the spendthrift and at the other is the compulsive over-spender. This type of client is likely to respond positively to savings plan ideas such as a grantor retained income trust [Editor note: U.S. example, may not be exact Canadian equivalent].

    Management is simply how your client manages money. Is your client a micromanager when it comes to his portfolio’s performance? Or does he miss bill payments because he is so disorganized? These clients are likely to be interested in retained management ideas like family limited partnerships [Editor note: U.S. example, may not be exact Canadian equivalent].

    • • •

    Filed by Sheila Avari, Advisor’s Edge, savari@rmpublishing.com.

    (06/24/03)

    Sheila Avari

  • What’s on the mind of one of Canada’s most experienced insurance advisors?
  • Roadblocks to family wealth planning and their solutions
  • Canadian advisors find value in conference’s non-financial elements
  • And the survey says… income affects attitude
  • Best practices attract the masses
  • BONUS TOOL: Advisor.ca time management worksheet Back to MDRT Annual meeting coverage main page

    To overcome estate planning obstacles, the Gallos’ reommended that advisors let the personal issues outweigh the technical ones, come across in a non-threatening way, have more in-person contact and master active and patient listening.

    In addition, knowing your clients’ money personality can help you create a plan for tackling sensitive estate planning issues. Jon explained that people have multifaceted relationships with money and that each person develops a unique relationship with money in three separate dimensions: acquisition, use and management.

    Acquisition deals with how your client gets money. For example, if your client is a successful entrepreneur whose life goal is creating and selling new business, acquisition is likely more important. Encourage such clients to think in terms of the family’s consolidated financial statement, Jon suggested. Is it important that increases in net worth from newly acquired business be reflected on their balance sheet or a consolidated financial statement? This question can lead to techniques to divert future wealth to younger generations through partnerships.

    Use describes how your client saves or spends. At one end is the spendthrift and at the other is the compulsive over-spender. This type of client is likely to respond positively to savings plan ideas such as a grantor retained income trust [Editor note: U.S. example, may not be exact Canadian equivalent].

    Management is simply how your client manages money. Is your client a micromanager when it comes to his portfolio’s performance? Or does he miss bill payments because he is so disorganized? These clients are likely to be interested in retained management ideas like family limited partnerships [Editor note: U.S. example, may not be exact Canadian equivalent].

    • • •

    Filed by Sheila Avari, Advisor’s Edge, savari@rmpublishing.com.

    (06/24/03)