If you are not doing Bloodline Planning for your client, you are dealing with a terminal SMSF – one that has been set up to wither and die. What use is that?
Now Bloodline SMSFs are not for every adviser but here’s the deal, they are for most SMSF Trustees. Work that one out.
You see, at all of my SMSF Trustee seminars these days I ask the following question:
Put your hand up if it is important to you that your money and assets stay within your bloodline?
And the results? 99% of the attendees put their hand up and the 1% who don’t – don’t have bloodline or don’t understand the question. Try this yourself. The next ten clients you talk to, whether on the phone or in person ask them whether it is important for their money and assets to stay within their bloodline. You will get the same results as me.
All well and good but what is the next step. Well this is what a good Bloodline Planning would do.
- Step One: Find out who the Leading Member of the Bloodline SMSF is going to be. In our NEW Bloodline SMSF to be released in December the Leading Member is the member who has the power to hire and fire the Trustee and also appoint and remove members in the Fund. Of course, there are certain processes, terms and conditions around that but in essence, like the Queen, the Fund is set up for bloodline only and Leading Membership passes down on death, bankruptcy or dementia to the next in line.
- Step Two: Discuss the importance of passing superannuation benefits directly from the Fund to the member’s bloodline, passing through an estate into a Bloodline Will and testamentary trust or passing directly into a Bloodline Family Trust.
- Step Three: Upgrade your client’s SMSF deed to a Bloodline SMSF deed.
- Step Four: While you are at it, if the client is a small or medium business owner, then the Family Trust needs upgrading to a comparable Bloodline Family Trust. This can be achieved easily without a resettlement or CGT and stamp duty impact (provided you know what you are doing).
- Step Five: Once the Bloodline SMSF is set up, the next step is Bloodline SMSF Estate Planning, but that is the subject of a whole new blog and training. If you haven’t heard my Bloodline training video, contact email@example.com and we will email you a link.
The big opportunity is that 90% of SMSFs have been built for two members only with the Fund to be wound up with the last surviving member. This means the advising time line is terminally short and lacks substance and finesse. It is no wonder that many SMSF Trustees do not see any real strategic value in their SMSFs apart from being able to control their investments.
In contrast, Bloodline SMSF planning and advising takes into account a much wider set of standards and requires more specialist competencies. Not only must the Bloodline SMSF adviser be able to provide advice on SMSFs but also keep in mind the Bloodline mission to protect and grow the bloodline’s superannuation wealth for generations to come. It requires strategic and thoughtful planning to cater for future generations.
It is not for all but for those that succeed, the mantle of “Trusted Bloodline Adviser” is theirs.
P.S. If you would like to upgrade your client SMSF Deeds to a Bloodline SMSF deed, please contact us for a quote. If you have 50 of more to upgrade our legal firm will do them individually for only $199 per deed which includes all the relevant minutes, deed of variation and Vault to store the deed in for future reference. We can also handle lost deeds. To get more information contact us at firstname.lastname@example.org for more information or a client email “The Ten Reasons why you need to upgrade to a Bloodline SMSF.”