Maximum Wealth Control

StrategiesArthur J. Pauly, Jr.

Law Offices of Arthur J. Pauly, Jr.Roseville, CA

916-207-7526

Law Offices of Arthur J. Pauly, Jr.

• Practice Limited to Estate and Wealth Transfer

Planning.•Member Wealth Counsel, LLC.

CREATIVE PLANNING

Begins With . . .

CREATIVE PLANNING

Begins With . . .

CREATIVE THINKING

And . . .

CREATIVE THINKING

And . . .

CREATIVE THINKING

Begins With . . .

CREATIVE THINKING

Begins With . . .

PROBLEMPROBLEMConnect ALL 9 DotsConnect ALL 9 Dots

Use Only 4 CONTINUOUS Straight LinesUse Only 4 CONTINUOUS Straight Lines

PROBLEMPROBLEMConnect ALL 9 DotsConnect ALL 9 Dots

Use Only 4 CONTINUOUS Straight LinesUse Only 4 CONTINUOUS Straight Lines

Creative PlanningCreative Planning begins withbegins with

THINKING BEYOND . . .THINKING BEYOND . . .

Creative PlanningCreative Planning begins withbegins with

THINKING BEYOND . . .THINKING BEYOND . . .

THE BOXTHE BOX!!THE BOXTHE BOX!!

WHY IS THE WHY IS THE

APPROACH OF APPROACH OF

FAMILY WEALTHFAMILY WEALTH

COUNSELINGCOUNSELING

SO UNIQUE? SO UNIQUE?

WHY IS THE WHY IS THE

APPROACH OF APPROACH OF

FAMILY WEALTHFAMILY WEALTH

COUNSELINGCOUNSELING

SO UNIQUE? SO UNIQUE?

FAMILY WEALTH COUNSELING

is much more than simply looking at a

net worth statement, an estate tax table

and running the numbers.

FAMILY WEALTH COUNSELING

is much more than simply looking at a

net worth statement, an estate tax table

and running the numbers.

FAMILY WEALTH COUNSELINGExplores the . . .

Financialaspect of a family’s wealth.

FAMILY WEALTH COUNSELINGExplores the . . .

Financialaspect of a family’s wealth.Most ShallowMost Shallow

Most ImpersonalMost ImpersonalExtremely Well DefinedExtremely Well Defined

Easiest to DiscussEasiest to DiscussLeast ImportantLeast Important

Most ShallowMost ShallowMost ImpersonalMost Impersonal

Extremely Well DefinedExtremely Well DefinedEasiest to DiscussEasiest to DiscussLeast ImportantLeast Important

90% of All Estate90% of All Estate

Planning CurrentlyPlanning Currently

Being DoneBeing Done

BEGINSBEGINS andand ENDSENDS

at This Financial Level!at This Financial Level!

90% of All Estate90% of All Estate

Planning CurrentlyPlanning Currently

Being DoneBeing Done

BEGINSBEGINS andand ENDSENDS

at This Financial Level!at This Financial Level!

Traditional estate Traditional estate planningplanning

is nothing more than ais nothing more than a

series of unpleasantseries of unpleasant

business decisions thatbusiness decisions that

have to be made in have to be made in order toorder to

Traditional estate Traditional estate planningplanning

is nothing more than ais nothing more than a

series of unpleasantseries of unpleasant

business decisions thatbusiness decisions that

have to be made in have to be made in order toorder toMINIMIZE THE DAMAGEMINIMIZE THE DAMAGEMINIMIZE THE DAMAGEMINIMIZE THE DAMAGE

FAMILY WEALTH COUNSELINGExplores the . . .

Socialaspect of a family’s wealth.

FAMILY WEALTH COUNSELINGExplores the . . .

Socialaspect of a family’s wealth.More Complex

More PersonalNot Well Defined

More Difficult to DiscussVery Important

More ComplexMore Personal

Not Well DefinedMore Difficult to Discuss

Very Important

TraditionalPlanning

IGNORINGSocial Aspect

TraditionalPlanning

IGNORINGSocial Aspect

Family WealthCounselingINCLUDING

Social Aspect

Family WealthCounselingINCLUDING

Social AspectVS.

VS.

Controls Distribution ofFamily Social Capital

Controls Distribution ofFamily Social Capital GOV’TGOV’T FAMILYFAMILY

Efficient Use ofFamily Social Capital

Efficient Use ofFamily Social Capital LOWLOW HIGHHIGH

Personal FulfillmentPersonal Fulfillment LOWLOW HIGHHIGH

Motivation toImplement PlanMotivation to

Implement Plan LOWLOW HIGHHIGH

It’s the introduction of theseIt’s the introduction of these

Social variables into theSocial variables into the

traditional estate planningtraditional estate planning

equation that produces suchequation that produces such

exciting newexciting new

planning options!planning options!

It’s the introduction of theseIt’s the introduction of these

Social variables into theSocial variables into the

traditional estate planningtraditional estate planning

equation that produces suchequation that produces such

exciting newexciting new

planning options!planning options!

““INTEGRATING THE INTEGRATING THE FINANCIALFINANCIAL AND AND NON-FINANCIALNON-FINANCIAL

ISSUES”ISSUES”

““INTEGRATING THE INTEGRATING THE FINANCIALFINANCIAL AND AND NON-FINANCIALNON-FINANCIAL

ISSUES”ISSUES”

WHY IS THISWHY IS THIS IMPORTANTIMPORTANT??WHY IS THISWHY IS THIS IMPORTANTIMPORTANT??

BUSINESS SUCCESSIONBUSINESS SUCCESSIONBUSINESS SUCCESSIONBUSINESS SUCCESSION

70% of family businesses do not survive to the second generation

90% do not make it to the 3rd generation

70% of family businesses do not survive to the second generation

90% do not make it to the 3rd generation

PERSONAL WEALTHPERSONAL WEALTHPERSONAL WEALTHPERSONAL WEALTH

65% of the wealth that passes 65% of the wealth that passes to the 2nd generation is lost by to the 2nd generation is lost by

the end of that generationthe end of that generation

90% of the wealth that is passed is 90% of the wealth that is passed is lost by the end of the 3rd lost by the end of the 3rd

generationgeneration

65% of the wealth that passes 65% of the wealth that passes to the 2nd generation is lost by to the 2nd generation is lost by

the end of that generationthe end of that generation

90% of the wealth that is passed is 90% of the wealth that is passed is lost by the end of the 3rd lost by the end of the 3rd

generationgeneration

Traditional Estate Traditional Estate Planning Does Not Planning Does Not

Achieve A Family’s Most Achieve A Family’s Most Important Goals Important Goals 80%80% Of Of

The Time.The Time.

Traditional Estate Traditional Estate Planning Does Not Planning Does Not

Achieve A Family’s Most Achieve A Family’s Most Important Goals Important Goals 80%80% Of Of

The Time.The Time.

What Is Needed?What Is Needed?

Common MissionCommon Mission

Communication and TrustCommunication and Trust

Prepared HeirsPrepared Heirs

State-Of-The-Art Estate Planning State-Of-The-Art Estate Planning Techniques Techniques

Common MissionCommon Mission

Communication and TrustCommunication and Trust

Prepared HeirsPrepared Heirs

State-Of-The-Art Estate Planning State-Of-The-Art Estate Planning Techniques Techniques

The SolutionThe SolutionThe SolutionThe Solution

““Begin The Process With The Begin The Process With The End In Mind’’End In Mind’’

““Begin The Process With The Begin The Process With The End In Mind’’End In Mind’’

TRUST AND COMMUNICATIONTRUST AND COMMUNICATION

•ACCOUNTS FOR 65% FAILURE RATEACCOUNTS FOR 65% FAILURE RATE•FAMILY MISSIONFAMILY MISSION•FUNDAMENTALS OF COMMUNICATIONFUNDAMENTALS OF COMMUNICATION•THE ART OF LISTENING THE ART OF LISTENING •DISCUSSING MONEY, VALUES , AND FAIRNESSDISCUSSING MONEY, VALUES , AND FAIRNESS•CONFLICT RESOLUTIONCONFLICT RESOLUTION•TRUSTTRUST

•ACCOUNTS FOR 65% FAILURE RATEACCOUNTS FOR 65% FAILURE RATE•FAMILY MISSIONFAMILY MISSION•FUNDAMENTALS OF COMMUNICATIONFUNDAMENTALS OF COMMUNICATION•THE ART OF LISTENING THE ART OF LISTENING •DISCUSSING MONEY, VALUES , AND FAIRNESSDISCUSSING MONEY, VALUES , AND FAIRNESS•CONFLICT RESOLUTIONCONFLICT RESOLUTION•TRUSTTRUST

•ACCOUNTS FOR 25% FAILURE RATEACCOUNTS FOR 25% FAILURE RATE•FAMILY MEETINGSFAMILY MEETINGS•EVALUATE / HIRE ADVISORSEVALUATE / HIRE ADVISORS•MENTOR IN SOCIAL RESPONSIBILITYMENTOR IN SOCIAL RESPONSIBILITY•MENTOR IN FINANCIAL AFFAIRSMENTOR IN FINANCIAL AFFAIRS•INVESTMENT POLICY / STRATEGYINVESTMENT POLICY / STRATEGY•ESTATE PLANNING REVIEWESTATE PLANNING REVIEW

•ACCOUNTS FOR 25% FAILURE RATEACCOUNTS FOR 25% FAILURE RATE•FAMILY MEETINGSFAMILY MEETINGS•EVALUATE / HIRE ADVISORSEVALUATE / HIRE ADVISORS•MENTOR IN SOCIAL RESPONSIBILITYMENTOR IN SOCIAL RESPONSIBILITY•MENTOR IN FINANCIAL AFFAIRSMENTOR IN FINANCIAL AFFAIRS•INVESTMENT POLICY / STRATEGYINVESTMENT POLICY / STRATEGY•ESTATE PLANNING REVIEWESTATE PLANNING REVIEW

•ACCOUNTS FOR 10% FAILURE RATEACCOUNTS FOR 10% FAILURE RATE•BEGIN WITH THE END IN MINDBEGIN WITH THE END IN MIND•STRATEGIES TO FULFILL MISSIONSTRATEGIES TO FULFILL MISSION•ROLES / STANDARDSROLES / STANDARDS•TOOLS & TECHNIQUESTOOLS & TECHNIQUES•STRATEGY DRILLSTRATEGY DRILL

•ACCOUNTS FOR 10% FAILURE RATEACCOUNTS FOR 10% FAILURE RATE•BEGIN WITH THE END IN MINDBEGIN WITH THE END IN MIND•STRATEGIES TO FULFILL MISSIONSTRATEGIES TO FULFILL MISSION•ROLES / STANDARDSROLES / STANDARDS•TOOLS & TECHNIQUESTOOLS & TECHNIQUES•STRATEGY DRILLSTRATEGY DRILL

PREPARED HEIRSPREPARED HEIRS

EFFECTIVE PLANNINGEFFECTIVE PLANNING

The Quest for Personal The Quest for Personal SignificanceSignificance

The Quest for Personal The Quest for Personal SignificanceSignificance

For Most of Us...For Most of Us...For Most of Us...For Most of Us...

The Legacy we leaveThe Legacy we leave

is measured by the is measured by the

Strength of our FamilyStrength of our Family

The Legacy we leaveThe Legacy we leave

is measured by the is measured by the

Strength of our FamilyStrength of our Family

Growing aGrowing aStrongStrong

Family TreeFamily Tree

Growing aGrowing aStrongStrong

Family TreeFamily Tree

Primary VirtuesPrimary Virtues((Who You AreWho You Are))

Primary VirtuesPrimary Virtues((Who You AreWho You Are))

Core Values((What’s Important to YouWhat’s Important to You))

Core Values((What’s Important to YouWhat’s Important to You))

Primary VirtuesPrimary Virtues((Who You AreWho You Are))

Primary VirtuesPrimary Virtues((Who You AreWho You Are))

Core Values((What’s Important to YouWhat’s Important to You))

Core Values((What’s Important to YouWhat’s Important to You))

L i fe-PurposeL i fe-Purpose

(What You're Here to Do)(What You're Here to Do)

Generations from Generations from now parents want now parents want their family tree to their family tree to look like this . . .look like this . . .

Generations from Generations from now parents want now parents want their family tree to their family tree to look like this . . .look like this . . .

not like this . . .not like this . . .not like this . . .not like this . . .

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

…to pass the entire value of my estate on to my children without paying any estate taxes?

Is that really possible?

…to pass the entire value of my estate on to my children without paying any estate taxes?

Is that really possible?

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

…to sell my appreciated assets and not pay a dime in capital gains taxes?

Is that really possible?

…to sell my appreciated assets and not pay a dime in capital gains taxes?

Is that really possible?

…that, after avoiding all these estate and capital gains taxes, the IRS is going to give me an additional current income tax deduction for opting out of paying these taxes?

Is that really possible?

…that, after avoiding all these estate and capital gains taxes, the IRS is going to give me an additional current income tax deduction for opting out of paying these taxes?

Is that really possible?

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

…to become a true philanthropist, supporting numerous charitable and social activities, and actually end up wealthier in the process?

Is that really possible?

…to become a true philanthropist, supporting numerous charitable and social activities, and actually end up wealthier in the process?

Is that really possible?

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

…to include some children in the family business, exclude some, yet have them all agree that the family wealth plan is fair?

Is that really possible?

…to include some children in the family business, exclude some, yet have them all agree that the family wealth plan is fair?

Is that really possible?

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

…to develop a wealth transfer plan that will enable me to maximize my family’s time, talents, and resources?

Is that really possible?

…to develop a wealth transfer plan that will enable me to maximize my family’s time, talents, and resources?

Is that really possible?

THE ANSWER TO ALL THESE THE ANSWER TO ALL THESE QUESTIONS IS AN EMPHATIC. . .QUESTIONS IS AN EMPHATIC. . .

THE ANSWER TO ALL THESE THE ANSWER TO ALL THESE QUESTIONS IS AN EMPHATIC. . .QUESTIONS IS AN EMPHATIC. . .

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

DO YOU MEAN TO TELL ME, IT’S POSSIBLE . . .

YES !YES !

What’s Our Role?What’s Our Role?

Direction Through Leadership

New Opportunities Through Creativity

A Plan and A Clear Path To Reach Desired Destination

Direction Through Leadership

New Opportunities Through Creativity

A Plan and A Clear Path To Reach Desired Destination

We Provide . . .We Provide . . .