1. PLANNING FOR
THE BUSINESS OWNER
AND COMPLEX CLIENT

2. 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

3. 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.

4. 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

5. 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

6. 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

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

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

9. 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

10. 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

11. 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

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

13. 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

14. 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

15. CONCLUSION