MAA319 Estate Planning and Insurance: Limited Statement of Advice

This document presents a limited statement of advice addressing the estate planning concerns of David and Eloise Cooper's extended family. It outlines their current financial positions, objectives, assets, and liabilities. The report details specific issues such as wealth management for retirement, assisting grandchildren's education, asset distribution, and concerns about dementia and potential inheritance disputes. It covers the financial situations of Bill and Gertrude Cooper, Carmel Hudson Cooper, Hamish Cooper, and Peter and Sophie Hudson, and their respective objectives, including providing for Penny's healthcare, planning for retirement, funding education, and securing financial support for Sophie and her children. The report concludes with recommended asset allocations and risk profiles tailored to each family member's circumstances. Desklib provides a platform for students to access similar solved assignments and past papers.

Running head: LIMITED STATEMENT OF ADVICE
Limited Statement of Advice
Name of the Student:
Name of the University:
Author’s Note:

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LIMITED STATEMENT OF ADVICE
Executive Summary
This section of the paper would be giving out to the client an overview of their present
situation, the objectives they want to attain, the strategies that would be recommended to them in
order to attain their goals and objectives and the end result the clients may be anticipating after
the incorporation of these strategies.
It is essential for the client to understand the executive summary and thereby understand
the recommendations that are being given along with the justified reasons with the help of which
they would be able to understand whether the objectives can be attained with the help of these
strategies. There needs to adequate information in order to permit the client to make a decision
with respect to the risk that are available and the fees that are related to the advice. All the
headings will be written in ambiguous and clear language and would be ideal with respect to the
financial understanding of the clients.
Current position
The present scenario of the clients require extensive understanding because of the fact
that there are several individuals who are related to this financial advice and accordingly specific
advises would be given to every member of David and Eloise’s family.
David and Eloise
They have been married six years after the demise of their respective spouses and
currently have four children two from the side of David and his first wife and two from the side
of Eloise and her first husband. Eloise’s mother and aunt has two properties each received from
their side of the father and the mother and it is seen that after the death of Eloise’s aunt, her son

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LIMITED STATEMENT OF ADVICE
want to sell off the house in which Eloise’s aunt used to live in order to relieve his part of the
share of the properties. The problem is sorted when the both the properties are divided equally
and the share of money received by Eloise’s mother on the equal distribution of the properties
would be given to Eloise as she is her only child. The couple is even concerned about the bad
relationships Bill and Hamish have and the bad relationship that is present between Bill and one
of his sons Barney. The couple even wants to ensure that they are able to sponsor the education
of their grandchildren even after they retire and therefore require additional money for the same.
The couple even wants to make sure that they have adequate money with the help of which they
can spend their retired in the way they have been living in the current time period. David’s
family has a history of having dementia and therefore prior steps are required by the couple as
well. On the other hand, Eloise is worried that after her death someone else may come to David’s
life and they take up all the inheritance of their children.
Bill and Gertrude Cooper
They are a married happy couple and have three children. They are facing the issue that
Penny their daughter has a twin and the twins have serious issues regarding their health as they
have been going through a brain damage. The couple wants to give most of their properties to
Penny as she has issues with her brothers Maddie and Barney. Barney has joined a religious
group and the couple are concerned that he may have joined a terrorist group and therefore does
not wish to give him anything out of their property. Maddie does not keep in touch with Bill and
Gertrude and sends cards over during the time of Christmas and birthdays. Bill is concerned that
he may be sued as he is a partner of the accounting firm if the employees are negligent. Hence,
all the assets are named under Gertrude and the family trust of Bill.

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LIMITED STATEMENT OF ADVICE
Carmel Hudson Cooper
Carmel is a 19 year old girl, who going through her university days. She has a future plan
of doing her master’s degree and thereafter go ahead with PhD. She is dependent on David and
Eloise and does not have any assets of her own. She is not ready to get married recently.
Hamish Cooper
He has been married twice and in the current time period is separated from his second
wife. He has six children from the two wives. The issues that he faces is that he is in the idea of
getting married again however, he has to pay for the educational expenses of his youngest
children and needs to pay a part of his asset to Amee if he is to get a divorce from her in order to
get remarried.
Peter and Sophie Hudson
The house where they reside has been purchased from the insurance proceeds that is
received by Sophie after the death of her previous husband. She wants the benefits she has
received to be transferred to her elder son Patrick. Peter on the other hand wants to ensure that
Sophie and his children would have adequate money to meet their future expenses if he expires
suddenly as he has been diagnosed with Parkinson’s disease. Sophie is even entitled to receive
the Centrelink Pension benefits from her aunt Maude who does not have children and Sophie is
her favourite niece. Sophie would also be receiving a large terrace in Paddington that is owned
by Aunt Maude.

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LIMITED STATEMENT OF ADVICE
Objectives
David and Eloise
Their objectives include:
 Create sufficient wealthy in order to maintain their retired daily life similar to the current
lifestyle they are living.
 Make effective investments of the money that is received from Eloise’s mother
 Assist in the education of their grandchildren
 Divide their assets within their children according to the pre-determined percentages
 Maintain the money in such manner so that it does not go into wrong hands except for
their children
Bill and Gertrude
Their objectives are:
 Provide assistance to Penny
 Generate adequate money for the post retirement lifestyle and planning
 Payoff their existing mortgages and debts before they retire
Carmel Hudson Cooper
Her objectives are:
 Study master
 Complete her PhD

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LIMITED STATEMENT OF ADVICE
Hamish Cooper
The objectives of Hamish are;
 Getting remarried
 Paying for the educational purposes for his youngest children
 Attain adequate money for the post retirement lifestyle
 Maintain money for his future family
Peter and Sophie Hudson
Their objectives are:
 Pay off the existing mortgages
 Purchase insurances in order to cover for the Parkinson’s disease, which has been
diagnosed for Peter
 Generate sufficient money in order to support Sophie and her children after Peter’s death.
Assets and Liabilities
David and Eloise
Assets Value
Home owned as joint tenants $1,329,000
Holiday home as joint tenants (purchased 1980 for $160,500) $987,000
Share portfolio (joint names); all purchased after 1985; cost
base $362,467
$2,334,567
Superannuation investments (David); taxable component 60% $629,234
Superannuation investments (Eloise); taxable component 40% $355,333
Investment unit as joint tenants (purchase after 1985); cost base
$269,300
$865,000

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LIMITED STATEMENT OF ADVICE
Bill and Gertrude

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LIMITED STATEMENT OF ADVICE
Carmel Hudson Cooper
No assets and liabilities as she is dependent on her parents
Hamish Cooper
Assets Value
Home owned by Gertrude $1,350,000
Bill’s business (interest acquired 1986 for $100,000 owned within
Bill’s family trust - The William Cooper Family Trust)
$3,950,000
Share portfolio (Gertrude) (acquired 1999 for $5,000) $126,344
Superannuation investments (Bill); taxable component 45% $692,994
Superannuation investments (Gertrude); taxable component 59% $143,311
Investment property owned by The William Cooper Family Trust
(acquired 2001 for $312,000)
$620,000
UK Investment property (in London) owned by Gertrude (acquired 1
July 2017 for the UK Sterling equivalent of $962,000)
$962,000
Life insurance (Bill) $2,000,000
Life insurance (Gertrude) $2,000,000
Liabilities Amount
Mortgage on home $679,342
Mortgage on investment property (The William Cooper Family Trust) $302,893
Mortgage on UK investment property (Gertrude) $1,005,234

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LIMITED STATEMENT OF ADVICE
Peter and Sophie Hudson
Risk
Profile
Assets Value
Home owned with Amee (Amee & Hamish) $1,490,000
Superannuation investments via The Hamish & Amee
Cooper Family Self-Managed Superannuation Fund
(Hamish)
$814,332
Motor vehicle – Landcruiser $52,000
Life insurance (Hamish) $200,000
Assets Value
Home owned by Sophie $730,000
Investment property owned by Peter (purchased October 1999
for $434,500)
$850,000
Superannuation investments via The Peter & Sophie Hudson
Family Self-Managed Superannuation Fund (Peter)
$794,565
Superannuation investments via The Peter & Sophie Hudson
Family Self-Managed Superannuation Fund (Sophie)
$521,118
Life insurance (Peter) $1,000,000
Liabilities Amount
Mortgage on Sophie’s home $214,799
Mortgage on Peter’s investment property $141,667

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LIMITED STATEMENT OF ADVICE
The risk profile of each one of the member have been created on the basis of their age,
risk taking capability and objectives that have been set forth earlier.
David and Eloise
Asset Class Allocation Percentage
International Equities 10%
Australian Equities 11%
Australian Bonds 30%
Property 10%
Fixed Income 20%
Cash 19%
Total 100%
Bill and Gertrude
Asset Class Allocation Percentage
International Equities 25%
Australian Equities 20%
Australian Bonds 22%

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LIMITED STATEMENT OF ADVICE
Property 2%
Fixed Income 30%
Cash 1%
Total 100%
Carmel Hudson Cooper
No risk profile required as she is dependent and does not have any investment purpose
Hamish Cooper
Asset Class Allocation Percentage
International Equities 17%
Australian Equities 23%
Australian Bonds 26%
Property 6%
Fixed Income 16%
Cash 12%
Total 100%

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LIMITED STATEMENT OF ADVICE
Peter and Sophie Hudson
Asset Class Allocation Percentage
International Equities 16%
Australian Equities 14%
Australian Bonds 34%
Property 6%
Fixed Income 24%
Cash 6%
Total 100%