Estate Planning for Family Businesses Our Panel Moderator: Wayne - PowerPoint PPT Presentation

Estate Planning for Family Businesses

Our Panel Moderator: Wayne Madsen, Wealth Management Division Manager Broadway Bank Wealth Management  Bill Bayern, Estate Lawyer Langley & Banack Law Firm  Brian Korb, PhD, CFA, CFP, Portfolio Manager Broadway Bank Investment Management Group  Kevin Rademacher, CFP, Wealth Advisor Broadway Bank Wealth Management

The Doe Family Tree John Doe MPB Chairman (70 yrs) Sally Doe (75 yrs) William Amy Nick MPB Employee MPB CEO (43 yrs) (48 yrs) (45 yrs) Clay Rich Bob Amy’s Spouse MPB Employee MPB Employee (28 yrs) (30 yrs) (30 yrs) Clay’s Spouse Rich’s Spouse Minor Child Minor Child Minor Child Minor Child Minor Child

Question One What are the basic estate planning documents the Doe’s should have and their purposes?

For your Estate Planning Toolbox Fundamental Tools: Other Tools:  Last Will and Testament  Probate and Estate Administration  Durable Power of Attorney  Living Trust  Medical Power of Attorney  Nonprobate Assets  Directive to Physicians  Buy/sell Agreements  Authorization to Release  Life Insurance Planning Medical Information

Question Two What are some ways for a business owner/family to handle distributions for a ‘William’ type beneficiary?

Question Three How would a business owner/family handle distributions to a ‘Nick’ type beneficiary?

Question Four What would happen if John is disabled and unable to manage his affairs? What are the consequences if he dies?

Question Five What are some basic strategies that could be implemented to lower estate taxes and ensure business continuation at John’s death or disability?

Advantages of a Bypass Trust

The Doe’s Homework (aka your homework)  Spend time thinking about and talking through what the family wants (objectives and goals for the business and family)  Research and hire competent advisors (lawyer, accountant, banker, etc.)  Create (or update) the documents you need based on your goals and objectives  Develop a business succession plan that supports the goals and objectives, and the documents you’ve created

In Conclusion You are going to die, planning is critical!

Q&A Questions?