Posted on February 27, 2012 by thecomplexestate
During last week’s HNW marketing series, we ran several polls to get a read on the market in comparison to the Wealthcounsel and Trust and Estates Annual Trends Survey.
In the Trends survey, it was noted that 57% percent of the respondents stated that clients were not planning for tax reasons. During our live webinar we polled our audience and it appears the over 67% stated the same. Planning for estate taxes fell to 4th on the list.
This was not surprising given that there are more pressing current issues facing families today such as cash flow, business planning, asset protection and family dynamics.
Given the number of alerts I received on a daily basis from Google in the area of estate planning, I see professionals talking and writing about estate taxes and unfortunately their message is falling on deaf ears. It is important to know your audience. Do you?
Enjoy the recording!
Filed under: Advanced Estate Planning, Business Succession Planning | Tagged: Advanced Estate Planning, advanced tax planning, Business Succession Planning, InKnowVision, Tax Planning, WealthCounsel | Leave a Comment »
Posted on February 21, 2012 by thecomplexestate
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Posted on February 15, 2012 by thecomplexestate
After completing over 900 integrated plans ($10- $100M in net worth) during the past nine years, we can confirm that cash flow and meeting lifestyle needs matter.
There is a gaping hole in integrated planning that exists between the financial and legal world. You can’t have one without the other. Clients fear that you will disrupt their cash flow, impede their lifestyle and make them give up control and that’s just the beginning. These are by far the most common reasons clients do not embrace integrated planning. If I was approached by an advisor whether it be an attorney, financial advisor or CPA, trying to sell me a strategy or plan and charging a large fee without understanding my lifestyle and cash flow needs first, I would run the other way. Wouldn’t you?
Advanced estate planning or business transition planning, for example, can’t be done in a vacuum. Over the years we have seen many plans put in place only to see them fall apart because clients didn’t really know what they had and how it affected their cash flow. Finding out the client’s goal and objectives is the first step. Securing their cash flow and lifestyle needs should be second.
Once you’ve come to terms with knowing their cash flow and having them confirm it with you and the rest of the advising team, then you can move into the planning options that will achieve the greatest results.
Take a lesson from us. Cash is king. That is why we start at the top of the wheel, where the cash is.
Filed under: Advanced Estate Planning, advanced tax planning, Business Succession Planning, Business Transition Planning, Estate Planinng, High Net Worth, high net worth tax planning, Uncategorized | Tagged: Advanced Estate Planning, advanced tax planning, Business Succession Planning, Cash flow, estate planning, high net worth | Leave a Comment »
Posted on February 7, 2012 by thecomplexestate
Advanced estate planning can be complex. It can also fall apart when you least expect it. Here are a few tips to help keep clients in tune with their planning.
- Tell them. Clients will pretty much do what you ask so long as they trust you. If you tell them that their plan will be reviewed at least annually then they will expect it.
- It’s Part of My Service. Make it part of your process and assure clients that this benefit will far out weigh the risk.
- Share a Story. Most planning mistakes are made because plans are not updated, implemented or executed. Sharing a story about anyone of these unfortunate events could help clients see why they should get a periodic review.
- Benefit vs. Cost. The value of keeping on top of one’s plan is priceless. Would any of your clients want an outcome that was different from their stated goals? I know no one who wants to pay more for planning than is necessary. I guess we could say the same about taxes!
- Family Matters. Reminding clients why they choose to plan in the first place assures that their cash flow, lifestyle needs and family protection goals will be met and are often subject to change.
During this tax season, the opportunities to talk with clients and their other trusted advisors are numerous. Be sure that CPAs have copies of your clients most updated plan or at least a summary. Include the financial advisor as well. Plan to meet with all team members face to face to be sure that everyone is on the same page and clients are not at risk and they are not missing opportunities.
Filed under: Advanced Estate Planning, advanced tax planning, Business Succession Planning, Business Transition Planning, Estate Planinng, Legacy Planning | Tagged: Advanced Estate Planning, Cash Flow planning, estate planning, Legacy Planning | Leave a Comment »
Posted on February 3, 2012 by thecomplexestate
Ben and Amanda Morgan are 63 and 60 respectively. Amanda spends the majority of her time involved with the family’s charitable interests and family foundation. Ben is still actively involved in the day to day operations of their corporation but looking for a way to exit the business and transition it over to his management team. They currently spend in excess of $800,000/yr. in living expenses and charitable giving which is covered through his salary with ABC Corp and some small owner distributions of profit to cover the difference.
Although Ben has great confidence in his current management team to operate and continue the business during and after his exit there are concerns surrounding the exit transaction. The Corporation is currently going through a growth stage with various acquisitions being made to strengthen their overall position in the market. As a result, the vast majority of the $6.5M in profits (which will continue to increase significantly through the next 5-10 years as the Corporation grows) are being reinvested back into the company to pay down debts and acquire and build new branches of service within the Corporation.
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