Exit Planning brings together uncoordinated planning

Sitting with a prospective client last client last week discussing some of the things we do in Ext Planning consulting, we mentioned preparing for the "unplanned exit" otherwise known as death.

He said "No problem there, I have a ton of life insurance owned by the corporation.

If I die, my guys can run it for my wife and life goes on."

Sounds like a pretty good answer on the surface right?

Not after digging deeper...

Have you ever asked her if she wants to own a $50 million dollar electrical contractor?

Have you asked your guys how they feel about working for your wife?

Who's going to make the business financial decisions for the company...Who takes on the financial liability"  Your guys?  Your wife?   What kind of built in conflicts are you creating?

Issues like this are always about more than money.

Most of us are guilty of doing our planning in a vacuum.  We choose a wealth manager we like and take his or her advice.  We buy our life insurance from someone else we like.  We choose our CPA and attorneys the same way.  But they do not communicate and coordinate with each other all that often.

In the exit planning process, we aim to tie these loose ends together.

We have known this prospect for about a year and a half and he is a really good man.  He bought the business from his father and turned it into a blockbuster.  He cares deeply about his wife and children.  He cares about his keys employees, who have been with him and have supported his efforts for many years.  But when it comes to dealing with issues deeper than surface level he shuts down.  If he keeps all his advisors in separate boxes, no one really has to know everything that's going on.

This, of course, is an impediment to truly achieving one's goals.

As consultants, we work with the client to open up about the big goals and coordinating plans that are often in conflict when the big picture is in view...