Sellers Need A Phased Approach to Wealth Planning
This week on “In Process: Conversations about Business in the 21st Century,” we continue with the next podcast in our series dedicated to the topic of preparing your business for sale.
Business owners often consider themselves immortal and are among the worst offenders when it comes to wealth management and estate planning. They’re just so focusing on growing their businesses, they make the mistake of not setting the necessary time aside to address these very important aspects of their lives.
In the fifth installment of our six-part podcast series, show hosts Evelyn Ashley and John Monahon (of Trusted Counsel) speak with Wilmington Trust’s Jonathan Fitzgerald, vice president and director of wealth and fiduciary planning in the Southeast, about how busy business owners can take a phased approach to wealth planning. Wilmington Trust is one of the largest personal trust providers in the United States.
“We think about business owners in one of three phases,” said Jonathan. “There's the business-capital phase when people are starting their companies―focusing on growth―and really might not be at a point where they're able to pull a lot of cash out of the business. Then there’s the personal-capital phase when the business is running successfully, and owners can start pulling cash out of the company and thinking about diversifying their overall asset picture. Finally, there’s the legacy-capital phase where the company is so successful that business owners focus on passing the wealth that they've generated onto the next generation.”
Needless to say, each phase requires its own set of wealth-planning strategies and tactics in order to successfully take business owners from start-up to their after-business lives.
During the course of the podcast, entrepreneurs, business owners and C-level executives will learn about the:
- Processes and timelines involved with wealth planning
- Aspects of family succession planning
- Importance of wills and trusts
- The role valuations play in wealth planning
- The impact of insurance on the planning process
- Different ways to transfer value outside of the estate
- Tax changes affecting estate planning
Learn more about the wealth-planning strategies you need before―and after―the sale of a business by streaming the conversation in its entirety in the player below, or download it to your mobile device via iTunes. Don’t miss a single episode, subscribe to our show “In Process Podcast” on iTunes to receive this episode as well as future episodes to your smartphone.