Transcript Exit Planning

ASSEMBLING YOUR
ADVISORY TEAM
Yes
No
Wealth Transition Checklist
Our family has a mission statement that spells out the overall purpose of our
wealth
The entire family participates in most important decisions, such as defining a
mission for our wealth
All family heirs have the option of participating in the management of the
family’s assets
Heirs understand their future roles, have “bought into” those roles, and look
forward to performing in those roles
Heirs have actually reviewed the family’s estate plans and documents
Our current wills, trusts, and other documents make most asset distributions
based on heir readiness, not heir age
Our family mission includes creating incentives and opportunities for our
heirs
Our younger children are encouraged to participate in our family’s
philanthropic grant making decisions
Our family considers family unity to be just as important as family financial
strength
We communicate well throughout our family and regularly meet as a family
to discuss issues and changes
Assembling Your Advisory Team
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WHO
WHAT
WHY
WHERE
HOW
Why do you need a team of
specialists?
• This is a unique and complex set of issues
• Most advisors don’t deal with these issues on
a regular basis
– They don’t have a shared process
– They don’t operate as a team
– Good team communication is critical
• Most advisors don’t meet as a team
Values-Based Planning
Financial
Independence
Planning
Family Wealth
Planning
Business Exit
Planning
Assembling Your Advisory Team
(Why)
• Competent
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Skills
Training
Practice
Experience
• Beginner
– If you have not
done this before
you are, by
definition, a
BEGINNER!
Assembling Your Advisory Team
(Who)
• Accountant (CPA)
• Lawyer
• Financial Advisor
– Investment
– Business Insurance
• Valuation Expert (Appraiser)
Assembling Your Advisory Team
(Who)
• CPA’s Expertise / Skill Set:
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Tax PLANNER (v. Tax Preparer)
Valuation Techniques
NQDC Experience/Knowledge
Work jointly with Financial Advisor (communicate)
Business Structures (evaluate for tax and liability)
Audit Experience
Assembling Your Advisory Team
(Who)
• Lawyer’s Expertise / Skill Set:
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Variety of Compensation Plans
Buy/Sell Agreements
Estate Planning
Wills & Trusts
The Tax Code
Assembling Your Advisory Team
(Who)
• Financial Advisor’s Expertise / Skill Set:
– Investment
• General Securities Lic. (Series 7)
– Business Insurance
• Life & Disability
• Property & Liability (risk transfer)
• Understands Risk
– General Business Savvy
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Has met a payroll (…still does)
Real Estate
Capital Markets
Banks and Lending
Assembling Your Advisory Team
(What)
What will they do for you?
• #1 – They will ask the right Questions!
• Guide a process that will aid you in:
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Clarity
Balance
Focus
Confidence
• Help you:
– Gain Ownership Perspective
– Identify Ownership Objectives
– Achieve your objectives through Ownership Planning
Assembling Your Advisory Team
(Where)
Where do you find your advisors?
• Who do you trust?
– People similar to you (friends, neighbors, associates)
• References from existing advisors (CPA, Attorney)
– Beware the Generalist (aka “Beginner”)
• Specialist advisors devoted to this type planning
– Interview them; check references and credentials
Assembling Your Advisory Team
(How)
How do YOU make this team work?
• Bring them together for a team meeting
• Observe the chemistry
• Are they good listeners?
– They should arrive with more questions than answers
– They should be looking for your “big picture”; your
goals and objectives
What to Look For; Critical Attributes
of a Family Coach or Advisor
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Not judgmental or critical
Will have a consistent process (simple, understandable)
They build skills with family members
They have a “track record” of successful families
(references)
• The family feels personally comfortable and confident when
talking with them.
• The coach is part of a larger team with multiple resources.
What are the Signs of a WellCoached Family?
• No “taboo” topics. (No “elephants in the living room”) Can
talk about everything.
• Able to talk, then take action, even on emotional topics.
• High degree of trust and personal care among family
members.
• No “pretending” on level-of-competence scale.
• If breakdowns, then mature dialogue occurs in family
• Clear mission for wealth; all could state it accurately
• Family members active in family philanthropy;
philanthropy is integral part of planning strategy
What are the Signs of a WellCoached Family? (cont’d)
• Heirs had a long-range vision of where they fit in the
family mission and knew what was expected of them to
qualify for any role they chose, as well as meaning of
commitment
• There was minimal gossip within the family. Most
conversations, including criticisms, were open and
above board.
• They all understood the tools available, and practiced the
skills of communication. They fully appreciated the
impact of a promise, and how quickly trust can be
betrayed by a broken promise.
Thank you!