Advice from the Experts
by Milan Topolovec (The TK Group)
Often the only thought that is associated with Estate Planning is death, your own or a loved one. However, Estate Planning should be something we all think about, and it should be completed to create solutions which should simplify your life, and even take care of your heirs at your passing.
One of the first questions people often ask about the process is who- exactly- should perform an Estate Plan for you?
Your Accountant?
Your Insurance Advisor?
Your Lawyer?
Your Investment Advisor?
Your Banker or Financier?
The fact of the matter is that all these people have a role in completing an Estate Plan.
In order to get the best results, a team approach is least costly and most efficient. We, at TK, often bring our clients into a boardroom with their lawyer and accountant to begin the planning process. This method ensures that all of the participants are on the same page and working with clearly defined objectives which are carefully discussed.
When there is a need, it is sometimes desirable to bring in other professionals who will provide value to the process. This has to be done carefully to protect existing relationships. The client may have a lawyer with whom they have had a long term relationship, however his/her specialty may not be reorganizations, shareholder agreements, employee contracts or numerous other aspects that may arise during discussions.
With Estate Planning, the questions posed throughout the process are extremely important, as they will dictate the proper course of action the team should take.
Working exclusively in the corporate/professional market enables us to be a valuable resource to clients, lawyers and accountants.
Completing an audit of current Wills, Structures, Insurance, Power of Attorney and Investments provide the team with the starting of current situation.
All the professionals should be team players and should check their egos at the boardroom door - the client is the star and we are there to take care of their needs.
Family business provides excellent opportunities to provide Estate Planning, and it can be a complex process. Effective communication is crucial to being able to capture the desires of the client to meet short and long term objectives.
We need to uncover any conflicts which may arise, and when they do, find effective solutions. Sometimes people get fixated on saving taxes, they forget that this is only one objective of a well executed Estate Plan. Business owners rarely have an audit completed on their insurance coverage to ensure that if something goes wrong, they, their family, and their businesses are protected.
It is unfortunate, but what you have t ask yourself is: What would happen today to you if you became disabled, critically ill, or died?
Creating a proper insurance solution is crucial in Estate Planning but must be done in conjunction with the “Big Picture.”
Over the years we have worked with hundreds of clients to bring them a piece of mind and sound solutions. Here are some of the situations we have uncovered while simply going in to “complete an insurance audit”.
“Client paying over $20,000 yearly premium for policies to cover business transaction that had stopped 10 years prior.”
“Client insured for $10 Million with company owning policy, paying premiums, but individual shareholders being named beneficiaries.”
Most often we find that there are better ways to integrate existing policies into a corporate structure.
• A Corporation with five shareholders and only two named in the shareholder’s agreement.
• Client not having a will or the will is outdated.
• Clients have no contracts or ideas what exactly they own.
• Often risk assessment not dealt with or completed on a piece meal basis with no coordination.
• Structured deficiencies eg. Operating company owning Real Estate and assets of corporation instead of creating a Real Estate company.
• No employment contract for shareholders.
• Shareholder agreements not covering the needs of clients.
• Shareholders with no agreement.
These are only a few instances that we have uncovered, but situations like these are a a real problem.
Sometimes I hear how people say that getting advice is expensive. While this is furthest from the truth, getting bad advice from incompetent advisors is worse than getting no advice.
It is important that you build a strong team of advisors who will provide you with unbiased advice with absolute focus on your needs. When required, search out other advisors who are “specialists” in their chosen area of expertise.
Once the Estate Plan has been created, complete regular reviews to ensure that it is still current and meets your long term goals.
For more information visit The TK Group