Where to Begin
Susan D. Marshall, CLU®, ChFC®, RICP®
Sooner or later, all business owners must address legacy and succession planning. As I’ve talked about before, (Your Secret Weapon for Wealth Transfer) with the right strategies in place, you can secure your family’s financial future and make a lasting impact beyond your active years in your business.
What’s the best way to approach this planning exercise? Through a collaborative approach with your trusted advisors, including your financial advisor, CPA and tax attorney. Here are three ways that this type of collaboration can enhance value:
1. Strategic alignment and holistic financial insight
- Added value: Working together, your trusted advisors can help you view your financial picture holistically, thus unifying your personal and business goals. For example, by working together, a financial advisor and a CPA can ensure that each decision reflects your comprehensive financial objectives, from preserving your business’ cash flow to safeguarding your personal retirement goals.
- Why it matters: Without a fully-integrated approach you can miss opportunities in tax savings, investment growth and wealth transfer. Trusted advisors collaborating on a clear, unified plan ensures alignment between business cash flow, retirement funding and estate goals, creating a seamless transition and long-lasting impact.
2. Optimized tax strategies for wealth protection and growth
- Added value: Your accountant and tax attorney can play a critical role in structuring your business and personal assets to maximize tax efficiency, especially around succession and wealth transfer. Their expertise allows for proactive tax planning through techniques like setting up trusts, establishing buy-sell agreements and leveraging family limited partnerships or charitable foundations.
- Why it matters: Without strategic tax planning, you risk higher taxes on business sales, inheritance and income, potentially eroding family wealth. A collaborative team can ensure these risks are managed, preserving and enhancing your legacy by minimizing tax liabilities and protecting assets for future generations.
3. Mitigating legal risks and enhancing asset protection
- Added value: Trusted advisors like tax attorneys bring essential legal insight to protect your wealth from creditors, litigants or unexpected losses. Through careful entity structuring, succession agreements and estate planning, your advisory team can secure personal and business assets.
- Why it matters: As a business owner you may face liability risks that, without adequate protection, could jeopardize your personal assets and wealth legacy. Collaborative advisors can help implement protective measures like liability insurance, asset separation and succession documents that shield wealth from claims, ensuring that your business and personal assets are well-protected.
Consider a team-based approach
As a financial advisor, I’ve seen first-hand what a tremendous difference a team-based, collaborative approach can make. I can bring in a team of trusted advisors to create a “virtual family office” for you, or I can work with the advisors with whom you already have an established relationship. Either way, this team approach provides a holistic, comprehensive service that delivers value far beyond traditional financial advising, supporting a lasting legacy for generations to come.
Curious about how a team-based approach can benefit you in your retirement and succession decisions? Just pick up your phone now and call me or schedule a free, no obligation chat together.