DEPC Meeting: Are We Planning for Wealth Sustainability or Wealth Dissipation? Why the Power of Collaboration is Integral to Beating the Shirtsleeves to Shirtsleeves in Three Generations Proverb
In the U.S. we know it as Shirtsleeves to Shirtsleeves in Three Generations. In China it’s called Rice Paddy to Rice Paddy in Three Generations. This proverb centered around the difficulties of successfully transitioning wealth and family enterprise is found all over the world. It’s confirmation of the research and data which show that only a third of family businesses survive into the second generation and only ten percent into the third generation. There is also research showing that 70% of families experience one or more of six failure events in their efforts to transition wealth to the rising generations of their family.
John A. Warnick has spent twenty years studying the non-technical influences which sabotage carefully designed and drafted wealth transfer and business succession plans. He will share an overview of the best practices which anecdotal and empirical research suggests are critical for sustainable technical planning. He will also discuss the importance of a collaborative team in overcoming the non-technical influences which can sabotage technically precise and tax effective planning. Mr. Warnick will address some of the practical challenges that appear to be barriers to collaboration between CFPs and the other members of the client’s advisory team and suggest strategies to prudently overcome those challenges.
John A. Warnick, who family, friends and clients know as “John A”, describes himself as a “recovering tax attorney.” After practicing for thirty years as a tax and legal advisor to wealthy families, he left the large law firm he was a partner in to pursue his passion of assisting clients transition their wealth more purposefully. He works with clients, and their team of advisors, to ensure that the impact of their technical planning will be a positive force in the lives of the rising generations of their family. His blog, Seedlings, provides suggestions on powerful but easy ways in which we can create non-financial legacies for our families and communities. John A has been on what he describes as the path to Purposeful Planning Mastery for almost twenty years. There are many technical and professional mentors he is indebted to. But he is quick to point out “my greatest teachers have been my clients. It is through them I discovered the secrets for producing not just tax-wise plans but plans that promote family harmony, individual growth and long-term preservation of family wealth.”
Mr. Warnick is a Fellow of the American College of Trust and Estate Counsel. He has served as the Philanthropic Editor of the Journal of Practical Estate Planning and serves on the Carter Center Philanthropy Council and the Multidisciplinary Teaming and Professional Collaboration Committee of the National Association of Estate Planners and Councils. His most recent publications include “Generative Trusts & Trustees: A New Paradigm for Design and Administration”, “Innovate or Die”, and "Selecting a Trust Situs in the 21st Century". Mr. Warnick received a BA magna cum laude from Brigham Young University and his JD from George Washington University with honors.
A special thank you to the sponsors of this meeting: