Scott Fitzpatrick:
An important piece of collateral is our annual review meeting document because when clients engage with us, it’s a leap of faith. Here’s all the list of things that we need to help them with, whether it’s the estate planning or asset protection, setting up family boards, constitution, et cetera, it’s still a leap of faith. And so we like to show them, here’s what we think the first 12 months will look like and at the end of 12 months I want to be able to bring you back a review document that looks something like this.
Scott Fitzpatrick:
And what we’re trying to do is we’re trying to make the intangible tangible for a client. And so really important piece of collateral for clients to have that sense of, “Ah, someone’s got their arms around our affairs. They understand where we’re going to, and from a risk management point of view, they understand all the issues we face, and over 12 months, I can see that we’re making progress around this.” Which gives the family some confidence around their affairs.
Scott Fitzpatrick:
So let’s have a look at this document in brief, and there are many, many variations of this document, but this is not a bad starting point. So, when we look through this. Where we’re up to “Now”. What does the next 10 years look like? What are their goals and objectives? What is their net worth? Their risk management considerations around human capital, investment risk, taxation, estate, litigation, business, and others? Their cash flows? Their capital allocation plan; a capital allocation is talking about, the concept of total household income. What does it cost us from a tax point of view, living, what’s left over? How do we allocate their capital over the year and a bit of a progress chart. And then we go into how we kept you organized from an investment point of view, from a net worth, your debt to equity, to keeping an idea on that. Your liquidity program, understanding your readily realizable assets. And then look at all the key strategies and considerations that we thought about for you throughout the year.
Scott Fitzpatrick:
And this brings us to your wealth position: lifestyle assets, active assets, passive assets, and your group structure. It then leads us to your appointed attorneys, how we’d have your will set up now, and your estate planning flow chart. And then lastly, it’ll lead to your deeds and documents register, which has all your structures, leases, entity charts, et cetera. It’ll also talk about the family constitutions, any family meetings we’ve had, who’s been involved in that and an update of the minutes. And then lastly, possibly, we include a family tree in there. So it’s a really great document to make the intangible tangible for people.
