Retirement Advisor | April 2016 | LifeHealthPro.com 10
the news 04.16
How to prepare for the DOL fiduciary rule in 3 steps
As Advisors prepAre for regulatory changes that could be coming
this month, the top worry is how
the proposed department of Labor
fiduciary rule will affect their busi-nesses. John Anderson, head of
practice management solutions at sei
Advisor Network, explains how fear
has taken over advisors’ thoughts.
“it’s fear of the unknown,” Anderson
says. “it’s ‘ What is the [fiduciary] rule
going to do to my business?’ ”
Anderson and his co-worker raef
Lee, managing director and head of
new services and strategic partner-
ships, have put together three pieces
of advice for advisors to use as they
prepare for the proposed rule.
1Start the conversation with clients now. Lee points out that the general public has limited knowledge of the rule and what it means for the industry.
Anderson and Lee both suggest having active conversations now with
clients to explain what could happen in the near future, to dispel any fears
they may have.
2Start segmenting clients. Anderson suggests pinpointing which clients have commissionable products in their accounts. From there, clients should
be separated into three areas: clients you want to move to fee based, set-aside
clients (those folks who have a variable annuity with surrender charges you
don’t want to move) and clients that may be better served somewhere else.
3 Start a technology workflow. Another issue that comes into a fiduciary practice is the use of more technology as a way to become more compliant.
For advisors who adopt an integrated CrM and technology workflow system
within their office, the fiduciary change could be a lot easier than for those who
have it all in their head.
SOURCE: EMILY ZULZ, THINKADVISOR.COM
But advisors can run into a problem along the way that can cause many other
problems: inheritance disputes. As an elder law attorney with 30 years of
experience, i know the ins and outs of inheritance and the signs to look for.
There is no single silver bullet that will prevent inheritance disputes. instead,
prevention requires a multifaceted approach that combines psychology, good
lawyering, a lot of self awareness and a good dose of common sense. Here are 10
tips aimed at avoiding, minimizing and resolving inheritance conflict.
is one of the many
important aspects of
1)Include an “in terrorem” clause to prevent will
contests. in terrorem means
“in order to frighten” in Latin.
Although disinheritance clauses
may appear to be a simple
solution, in terrorem clauses
have fewer limitations.
2)Be aware of long-established sibling roles. Children should
be named based on traditional
family leadership roles to avoid
insulting the oldest child.
3)Balance the needs of second
spouses and children.
second marriages are
the leading cause of
Consider an outright
transfer to natural
children at the death
of the first spouse at
an amount that won’t
jeopardize the well-being of the surviving
spouse. This helps
avoid a potential
4)Disinherit only as a last resort.
leaves a lasting
legacy of hurt and
rejection. if it does
need to happen,
from a legal standpoint, it’s better
not to explain why.
5)Ethical wills. Create an ethical
will to express the
and feelings on
such as family unity,
child rearing and love.
BY P. MARK ACCETTURA