ASSEMBLING ASSEMBLING YOUR ADVISORY YOUR ADVISORY

TEAMTEAM

Yes No Wealth Transition ChecklistOur 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 Assembling Your Advisory TeamTeam

• WHOWHO• WHATWHAT• WHYWHY• WHEREWHERE• HOWHOW

Why do you need a team Why do you need a team of specialists?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

Financial Independence

Planning

Family Wealth Planning

Business Exit Planning

Values-Based PlanningValues-Based Planning

Assembling Your Advisory Team (Why)

• CompetentCompetent– SkillsSkills– TrainingTraining– PracticePractice– Experience Experience

• BeginnerBeginner– If you have not If you have not

done this done this before you are, before you are, by definition, a by definition, a BEGINNER!BEGINNER!

Assembling Your Advisory Assembling Your Advisory TeamTeam (Who)(Who)

• Accountant (CPA)Accountant (CPA)• LawyerLawyer• Financial AdvisorFinancial Advisor

– InvestmentInvestment– Business InsuranceBusiness Insurance

• Valuation Expert (Appraiser)Valuation Expert (Appraiser)

Assembling Your Advisory Assembling Your Advisory TeamTeam (Who)(Who)

• CPA’s Expertise / Skill Set:CPA’s Expertise / Skill Set:– Tax PLANNER (v. Tax Preparer)Tax PLANNER (v. Tax Preparer)– Valuation TechniquesValuation Techniques– NQDC Experience/KnowledgeNQDC Experience/Knowledge– Work jointly with Financial Advisor Work jointly with Financial Advisor

(communicate)(communicate)

– Business Structures Business Structures (evaluate for tax and liability)(evaluate for tax and liability)

– Audit ExperienceAudit Experience

Assembling Your Advisory Assembling Your Advisory TeamTeam (Who)(Who)

• Lawyer’s Expertise / Skill Set:Lawyer’s Expertise / Skill Set:– Variety of Compensation PlansVariety of Compensation Plans– Buy/Sell AgreementsBuy/Sell Agreements– Estate PlanningEstate Planning– Wills & TrustsWills & Trusts– The Tax CodeThe Tax Code

Assembling Your Advisory Assembling Your Advisory TeamTeam (Who)(Who)

• Financial Advisor’s Expertise / Skill Set:Financial Advisor’s Expertise / Skill Set:– InvestmentInvestment

• General Securities Lic. (Series 7)General Securities Lic. (Series 7)– Business InsuranceBusiness Insurance

• Life & Disability Life & Disability • Property & Liability (risk transfer)Property & Liability (risk transfer)• Understands RiskUnderstands Risk

– General Business SavvyGeneral Business Savvy• Has met a payroll (…still does)Has met a payroll (…still does)• Real EstateReal Estate• Capital MarketsCapital Markets• Banks and LendingBanks and Lending

Assembling Your Advisory Assembling Your Advisory TeamTeam (What)(What)What will they do for you?What will they do for you?• #1 – They will ask the right Questions!#1 – They will ask the right Questions!• Guide a process that will aid you in:Guide a process that will aid you in:

– Clarity Clarity – BalanceBalance– FocusFocus– ConfidenceConfidence

• Help you:Help you:– Gain Ownership PerspectiveGain Ownership Perspective– Identify Ownership ObjectivesIdentify Ownership Objectives– Achieve your objectives through Ownership Achieve your objectives through Ownership

PlanningPlanning

Assembling Your Advisory Assembling Your Advisory TeamTeam (Where)(Where)

Where do you find your advisors?Where do you find your advisors?• Who do you trust?Who do you trust?

– People similar to you (friends, neighbors, associates)People similar to you (friends, neighbors, associates)• References from existing advisors References from existing advisors (CPA, (CPA,

Attorney)Attorney)– Beware the Generalist (aka “Beginner”)Beware the Generalist (aka “Beginner”)

• Specialist advisors devoted to this type Specialist advisors devoted to this type planningplanning– Interview them; check references and credentialsInterview them; check references and credentials

Assembling Your Advisory Assembling Your Advisory TeamTeam (How)(How)

How do YOU make this team work?How do YOU make this team work?• Bring them together for a team meetingBring them together for a team meeting• Observe the chemistryObserve the chemistry• Are they good listeners? Are they good listeners?

– They should arrive with more questions They should arrive with more questions than answers than answers

– They should be looking for your “big They should be looking for your “big picture”; your goals and objectivespicture”; your goals and objectives

What to Look For; Critical What to Look For; Critical Attributes of a Family Attributes of a Family Coach or AdvisorCoach or Advisor

• Not judgmentalNot judgmental or critical or critical• Will have Will have a consistent process a consistent process (simple, (simple,

understandable)understandable)• They They build skillsbuild skills with family members with family members• They have a They have a “track record” of successful families“track record” of successful families

(references)(references)• The family feels personally comfortableThe family feels personally comfortable and and

confident when talking with them.confident when talking with them.• The coach is part of a larger teamThe coach is part of a larger team with multiple with multiple

resources.resources.

What are the Signs of a Well-Coached Family?

• No “taboo” topics. (No “elephants in the living No “taboo” topics. (No “elephants in the living room”) Can talk about everything.room”) Can talk about everything.

• Able to talk, then take action, even on emotional Able to talk, then take action, even on emotional topics.topics.

• High degree of trust and personal care among High degree of trust and personal care among family members.family members.

• No “pretending” on level-of-competence scale. No “pretending” on level-of-competence scale. • If breakdowns, then mature dialogue occurs in If breakdowns, then mature dialogue occurs in

familyfamily• Clear mission for wealth; all could state it accuratelyClear mission for wealth; all could state it accurately• Family members active in family philanthropy; Family members active in family philanthropy;

philanthropy is integral part of planning strategyphilanthropy is integral part of planning strategy

What are the Signs of a What are the Signs of a Well-Coached Family? Well-Coached Family? (cont’d)(cont’d)

• Heirs had a long-range vision of where they fit Heirs had a long-range vision of where they fit in the family mission and knew what was in the family mission and knew what was expected of them to qualify for any role they expected of them to qualify for any role they chose, as well as meaning of commitmentchose, as well as meaning of commitment

• There was minimal gossip within the family. There was minimal gossip within the family. Most conversations, including criticisms, were Most conversations, including criticisms, were open and above board.open and above board.

• They all understood the tools available, and They all understood the tools available, and practiced the skills of communication. They practiced the skills of communication. They fully appreciated the impact of a promise, and fully appreciated the impact of a promise, and how quickly trust can be betrayed by a broken how quickly trust can be betrayed by a broken promise.promise.

Thank you!