Wills and trusts will open doors to clients

JEFF SMITH, COMMERCIAL DIRECTOR, THE ASSET PROTECTION STRATEGY
JEFF SMITH, COMMERCIAL DIRECTOR, THE ASSET PROTECTION STRATEGY

We’ve looked at how wills and trusts, or asset protection, can be a lucrative revenue channel for brokers, and one they can introduce to clients during the fact-find or remortgage review.

Brokers don’t need to be experts in this area and are not expected to become will writers – the creation of the wills and trusts is done by an expert third party, that protects any advice given through its own professional indemnity cover.

Neither do brokers need formal qualifications, as wills and trusts aren’t regulated. The broker’s role is to introduce the concept of asset protection to clients, which, with some training, is easily done.

Once you have explained to clients in simple terms how they may be exposed through an absence of straightforward estate planning, many will take immediate steps to put the correct cover in place.

Around two-thirds of the population don’t have a will, and most life insurance policies are not written in trust. This means that many family assets are not only being left open to unnecessary taxation but may also fall into the wrong hands.

A benefit of introducing asset protection to clients is the in-built referral mechanism it offers. Anyone creating wills and trusts must appoint guardians, executors and trustees, who are usually wealthier family and friends.

You will need to speak to all of them to ensure they understand their responsibilities. When you do, you will find most of them have no arrangements in place. So another new client is only an asset protection presentation away.