2 questions to ask clients about estate planning

By Russell Collins, Dip LI

The following questions have little to do with the sale of insurance but everything to do with the sale of you. People buy people!

These questions are a classic example of my belief that the No. 1 purpose of the fact-finding meeting is to establish a relationship and the No. 2 purpose is to gather information.

Do you have an estate equalization plan for your children?

It’s amazing how this one particular question could turn the meeting into a separate 45-minute conversation, especially if I had been able to ascertain before or during the meeting that there were children from both an existing and previous marriage.

For example, when speaking to fathers who had actually become more financially prosperous in the second marriage, their dilemma arose from the obligation they felt toward the children of the first marriage versus their obligation toward their children from the second marriage.

As an aside, in such situations, after due discussion, I would suggest a simple solution: that they consider creating another asset called life insurance which could be left to the children of the first marriage upon the death of the insured. Thus, their feeling of obligation toward their children from the second marriage could remain undisturbed.

If you and your spouse had died yesterday, do you have any concern about accumulated wealth falling into the wrong hands?

Here is the opportunity to raise the very delicate subject of financially irresponsible children and current or future in-law situations. Again, this is one of those questions that could segue into a separate 45-minute discussion. While the ensuing discussion is of an obviously sensitive nature, it also means that you, as the advisor, have been taken into confidence and should be aware that a trust relationship is being forged.

Hear two more important questions from Collins’ 2016 Annual Meeting presentation “Skills that succeed in the untapped business market” in the September episode of MDRT Presents:

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Collins is a 45-year MDRT member from Elanora Heights, New South Wales, Australia.

 

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