PLANNING FOR THE BUSINESS OWNER AND COMPLEX CLIENT

MAKING YOURSELF RELAVANT AND UNIQUE Typical Sale Model Transaction Focused Business Single Issue Focused Business Focus on what YOU are getting out of the Client relationship

MAKING YOURSELF RELAVANT AND UNIQUE Advisor Model (Part One) Client Needs Focused Focus: To create a comprehensive plan that protects the client, and the client’s wealth, business and loved ones.

MAKING YOURSELF RELAVANT AND UNIQUE Advisor Model (Part Two) Requires a comprehensive analysis of all issues Business Succession Incapacity and Long Term Care Death Tax Planning Asset Protection Special Needs Planning Elder Care Issues Business Planning

BUSINESS SUCCESSION PLANNING: ISSUES TO CONSIDER Effects of failing to plan for death of an owner or key employee? Decedent's heirs involved in the business Business unable to continue without decedent requiring sale or dissolution Loss of Income to Client’s family Disputes Probate Payment of unnecessary taxes

BUSINESS SUCCESSION PLANNING: ISSUES TO CONSIDER Effects of failing to plan for Retirement and Disability of Partner Disputes regarding continued ownership and involvement of owner Involvement of outsiders in business Conservatorship Loss of income for disabled owner Disruption due to disability or retirement of owner of key employee

BUSINESS SUCCESSION PLANNING: ISSUES TO CONSIDER Effects of Divorce of Owner Disgruntled Wife as Your new partner Valuation

BUSINESS SUCCESSION PLANNING: ISSUES TO CONSIDER Effects of Bankruptcy of Owner Creditor as Your partner Valuation Bankruptcy Court

BUSINESS SUCCESSION PLANNING: DEVISING AN EFFECTIVE PLAN Create Your “Pre-nup or Post-nup”: Partnership, Shareholder, Buy-Sell Agreements Incentives for key employees: (i.e. Employee Stock Purchase Agreement) Establish a saleable business: Have a business plan Establish an agreed upon method of valuation and determine value continued on next slide

BUSINESS SUCCESSION PLANNING: DEVISING AN EFFECTIVE PLAN Incorporate your business succession plan with your estate plan Establish solutions to implement agreed upon business buy-outs Provide liquidity on death of owner/key employee to provide for unforeseen difficulties

BUSINESS SUCCESSION PLANNING: THE TOOLS Creating a comprehensive business plan Creating your estate plan (Trust, Wills, POAs, Tax Planning) Consulting and involving tax professionals in all aspects of planning Life Policies on Owners Life Policies on Employees continued on next slide

BUSINESS SUCCESSION PLANNING: THE TOOLS Self-insuring for the event of death, disability, and bankruptcy Retirement planning Business Sale to third party

INCAPACITY AND LONG TERM CARE: HEALTHY AND WEALTHY IN RETIREMENT Increased Taxes & Medical Care Costs Long Term Care / Nursing Home Costs Longevity: Outliving Our Retirement Savings Avoiding Conservatorship (Disability) Avoiding Probate (Death) Trust Planning (Plan and Control) Remarriage by you or Adult Children Special Needs of Our Family WHAT ARE THE ISSUES WE FACE TODAY? The late Maya Angelou – reminded us “WHEN WE KNOW BETTER WE DO BETTER”….. Taxes- Medical Costs LTC and Nursing Home Costs Longevity- will we have enough and are we prepared…. What

INCAPACITY AND LONG TERM CARE: MEDICAL AND LONG TERM CARE PLANNING Self Insure: Use your Savings Traditional: Long Term Care Insurance Protection Hybrid: Long Term Care Savings Plan Medi-Cal: For Individuals/Couples with Limited Income & Depleting Assets Asset Protection: Don’t Go Broke in a Nursing Home PLANNING FOR LTC HAS CHANGED SIGNIFICANTLY OVER THE LAST 5 YEARS. IF YOU HAVE NOT LOOKED INTO THE POSSIBLITIES AND OPTIONS LATELY…I URGE YOU TO DO SO NOW. (EXPECTED THAT IF WE DON’T EACH HAVE $1m PER PERSON SAVED FOR LTC COSTS THEN WE WILL NEED PUBLIC ASSISTANCE!) Fact: 1 IN 8 AT AGE 65 HAS DEMENTIA AND AT 85 1 IN 2. ILLNESS- 2 TO 20 YEARS! In 2013 Alz care reached $200 B. IT SHOULD BE PART OF EVERYONE’S FINANCIAL AND ESTATE PLAN- IF NOT IT WILL BE THE GOVERNMENT’S PLAN MYTH: I HAVE TO SPEND DOWN ALL MY MONEY IN ORDER TO GET NURSING HOME CARE AND SUPPORT FOR MY SPOUSE OR FAMILY MEMBER NO, THERE ARE LAWS THAT PROTECT THE “WELL-SPOUSE” FROM IMPOVERISHMENT. COACH WOODEN: YOU ARE GOOD STEWARDS OF YOUR WEALTH AND WE HAVE TECHNIQUES TO PRESERVE IT IF THERE IS DISABILITY AND A NEED FOR LTC

CONCLUSION