Hults WSG Brochure
- 1. MERRILL LYNCH PRIVATE WEALTHMANAGEMENT 213 S. ARNAZ DR. BEVERLY HILLS, CA 90211 T: (424) 202-0901 F: (424) 288-5567 SCOTT@HULTSWSG.COM WWW.HULTSWSG.COM A VALMARK MEMBER FIRM WEALTH TRANSFER SOLUTIONS FOR FAMILIES & BUSINESSES OF MULTI-GENERATIONAL WEALTH WEALTH PRESERVATION &TRANSFER
- 2. OVERVIEW WEALTH CONSERVATION AND TRANSFER ESTATEPLANNING BUSINESS SUCCESSION BUSINESS INSURANCE STRATEGIES PHILANTHROPIC PLANNING EXECUTIVE COMPENSATION PROGRAMS G L O B A L R E S O U R C E S | C U S T O M S O L U T I O N S | E X P E R I E N C E D A D V I C E At Hults Wealth Structuring Group, we know that families and businesses of multi-generational wealth encounter complex financial situations that require custom solutions and attention to the many different areas affecting their overall financial well being. O U R T E A M To help address these unique requirements, we offer a multi-disciplinary team of senior financial specialists who, together, provide an enhanced level of expertise for clients requiring highly personalized attention in the preservation and transfer of wealth. O U R M I S S I O N As your Wealth Transfer Advisors, our role is to enhance the effectiveness of your asset growth and protection strategy through sound, cost-effective insurance solutions that are integrated with all aspects of your financial affairs. This is accomplished by combining the global resources of the ValMark Companies (one of the nation’s leading, independent wealth transfer broker dealers) and their extensive network of national and regional wealth transfer – with the high level of personal service and experience for which Hults WSG is known. In addition, we work closely with your legal, tax and investment advisors to ensure that you receive professionally orchestrated financial analysis and implementation. O U R C L I E N T S Our clients include highly affluent individuals, families, entrepreneurs and Fortune 1000 executives. We have a distinguished reputation in the field of wealth structuring and, through the ValMark Companies, have an estimated $30 billion of in-force life insurance with a select group of leading life insurance and investment companies specializing in wealth transfer funding. 2
- 3. T H EQ U A L I T I E S T H A T S E T U S A P A R T Hults Wealth Structuring Group provides several distinct qualities that have earned the confidence of our clients and set us apart as leaders in wealth preservation and transfer planning. 1. K N O W L E D G E A N D F O C U S Providing sophisticated insurance solutions for families and businesses of multi-generational wealth is our primary business. Our years of experience providing results for clients have produced carefully developed disciplines for building and preserving wealth, including personal and business strategies for minimizing taxes and maximizing benefits for the client’s family, business and charities. 2. C L I E N T A D V O C A C Y The financial and insurance needs of your family and business are at the center of our philosophy and approach. 3. N E E D S F O C U S Our primary goal is to design the optimum strategy around your needs. Only then do we present alternatives for funding – in a strategic versus product- driven context. 4. C O M P L E T E S C O P E As an independently-owned Member Firm of the ValMark Companies, Hults WSG is able to objectively provide the customized solutions most suitable for your needs through our global network of industry-leading wealth transfer specialists and insurance providers. OVERVIEW 3
- 4. T H EQ U A L I T I E S T H A T S E T U S A P A R T 5. M U L T I - G E N E R A T I O N A L C O N T E X T Our professional discipline not only addresses your short- term goals, but emphasizes the long-term legacy requirements for your spouse, business, community and future generations. 6. C O O R D I N A T I O N W I T H A D V I S O R S The complex issues facing clients with multi-generational wealth require meticulous and central coordination. Integral to our planning approach is to work closely with your legal, tax and investment advisors to ensure that your plan is professionally orchestrated and implemented.* 7. C O N T I N U I T Y Our client relationships span generations, providing the assurance that Hults WSG and the ValMark Companies will remain active partners in your financial success. Together, we make certain that your family and business strategies are kept current, not only with your evolving needs, but also with innovations in the marketplace and changes in government regulation. 8. U N P A R A L L E L E D S E R V I C E We believe that clients should receive a “unique experience” that far surpasses expectations. Accordingly, the advice that you receive and our platform of solutions are invariably delivered with the highest level of service. OVERVIEW *Clients should review any planned financial transactions that may have tax implications with their own tax and legal advisors. 4
- 5. MERRILL LYNCH PRIVATE WEALTHMANAGEMENT C U S T O M I Z E D S O L U T I O N S F O R Y O U R U N I Q U E A N D C O M P L E X F I N A N C I A L N E E D S H U L T S W S G CUSTOM SERVICES
- 6. Attention to detail,the capability to consider all aspects of a client’s situation, and the advice of highly experienced professionals allow our clients to experience the personalized services of a small boutique – while benefiting from the resources, customized solutions and variety of services that a global firm can provide. A D D R E S S I N G T H E C O M P L E X R E Q U I R E M E N T S O F W E A L T H CLIENT-CENTERED SERVICES MAINTAINING CONTROL OVER YOUR PERSONAL AFFAIRS Financial Strategies Retirement Planning Asset Transfer Strategies Capital Preservation Life Settlements MANAGING RISK Life Insurance Long Term Care Insurance Disability Income Insurance Salary Continuation Plans INCOME TAX REDUCTION CRATS, CRUTS & NIMCRUTS Charitable Lead Trusts Family Limited Partnerships Private Foundations Donor Advised Funds Family Corporations Section 529 Education Plans FEDERAL GIFT & ESTATE TAX REDUCTION Estate Planning Charitable Gifting Strategies Irrevocable Life Insurance Trusts (ILITS) Charitable Remainder Trusts Charitable Foundations GRATS & GRUTS Family Limited Partnerships QTIPS, QDOTS & QPRTS Analysis of Trust-Owned Life Insurance PASSING VALUE & RESPONSIBILITY TO FAMILY MEMBERS Dynasty Trusts GRATS & GRUTS Inheritors Trusts Wealth Replacement Trusts Private Foundations Education Trusts Fully Funded Revocable Trusts ESOPS Family Limited Partnerships PROTECTION AGAINST LITIGATION Limited Liability Companies Insured Asset Protection Vehicles CRATS, CRUTS & NIMCRUTS Domestic Family Limited Partnerships GRATS & GRUTS MANAGING THE VALUE OF THE FAMILY BUSINESS Business Continuation Planning Strategies Buy Sell Plans 412 (i) Plans CRATS, CRUTS & NIMCRUTS Wealth Replacement Trusts ESOPS & LESOPS Liquidation Planning Overhead Expense Plans Split Dollar Plans Family Limited Partnerships Limited Liability Companies Irrevocable Life Insurance Trusts (ILITs) Dynasty Trusts RECRUIT, RETAIN, REWARD HIGHLY-PAID EXECUTIVES Non-Qualified Deferred Compensation Plans Financial Strategies for Key Executives Qualified Plans (Profit Sharing, Pension Plans, 401(k) Plans, 412(i) Plans, ESOPs) Disability Income Insurance Key Person Insurance Long Term Care Insurance 6
- 7. MATCHING FUNDING STRATEGIES TOYOUR PLAN OBJECTIVES As your advocate in the insurance planning process, Hults WSG provides a thorough and objective evaluation of possible funding methods using proprietary analytical models and tools. H O W WE H E L P Y O U A C H I E V E Y O U R G O A L S I S W H A T S E T S U S A P A R T CLIENT-CENTERED PROGRAMS THE TOLI EXPERT SYSTEM™ An analytical process that assists clients and their advisors in addressing the complex tax, trust and legal issues involved in the ownership of life insurance inside irrevocable insurance trusts. This system employs a comprehensive five-step process (including a Policy Management Statement) to assure that the client receives: Clear objectives for the insurance and Written quantifiable standards used to assist the trustee in the selection, structure, maintenance and service of the policy over the grantor’s lifetime. THE LIFE INSURANCE DESIGN QUESTIONNAIRE® An assessment tool that assists clients and their advisors in the selection, design and purchase of life insurance products. By answering the Questionnaire, the client and advisors are able to establish objective, quantifiable specifications for the insurance policy and its structure, permitting them to evaluate and select the policy that best matches the client’s financial objectives. THE CLEARVIEW SYSTEM® The ClearView System® was designed to help our clients understand their choices and objectively select the type of life insurance expertise most suited to their needs. The ClearView System® is a professional process that gives our clients a transparent view of the roles in which an insurance advisor may serve, either as an Agent, a Broker, or a fee-based Consultant. With any fee-based work, the Hults WSG Engagement Letter will clearly summarize both your expectations and our responsibilities to you. 7
- 8. CLIENT ADVOCACY When purchasinglife insurance or negotiating a life settlement, our clients are most interested in obtaining the best pricing available based on their needs. Hults WSG has two unique client advocacy programs –– backed by one of the strongest underwriting and life settlement teams in the industry to assist our clients in obtaining the best possible results from a broad selection of highly rated insurance companies. H O W WE H E L P Y O U A C H I E V E Y O U R G O A L S I S W H A T S E T S U S A P A R T CLIENT-CENTERED PROGRAMS THE UNDERWRITING ADVOCACY PROGRAM™ The Underwriting Advocacy Program™ is our disciplined process for helping clients obtain the best possible underwriting rating for the purchase of life insurance. It is particularly helpful in situations involving large amounts of life insurance and/or a health impairment. The process employs specialized medical expertise and a unique method of packaging the case in order to secure insurance on the most favorable terms. Once the case is researched and packaged, a confidential market search is conducted to identify insurers who will underwrite the case on a favorable basis. Underwriting Advocacy is performed in conjunction with the ValMark Companies’ distinguished underwriting team which includes: Four former life insurance company Vice Presidents of Underwriting A licensed physician and former insurance company Medical Director A senior staff of case management, business processing and policy service specialists THE LIFE SETTLEMENT ADVOCACY PROGRAM™ When considering alternatives for the sale of a life insurance policy, our clients are most interested in obtaining the best possible price for their insurance. With this objective in mind, Hults WSG provides leveraged access to all of the major life settlement providers through its relationship with the ValMark Companies, and uses a formal, systematic process to life settlements to ensure the highest possible value for each policy sale. Each step in the process employs specialized support tools and documentation to help clients make safe, informed and objective decisions while streamlining the life settlement process. As an added measure of safety for the client, Hults WSG and the ValMark Companies treat the life settlement transaction as a security, placing it under the heightened scrutiny of FINRA. The Life Settlement Advocacy Program™ also provides the assurance of having one of the industry’s leading independent teams of life settlement specialists working on the client’s behalf. Please see additional information on page 16. 8
- 9. MERRILL LYNCH PRIVATE WEALTHMANAGEMENT A D I S C I P L I N E D A P P R O A C H T O W E A L T H S T R U C T U R I N G H U L T S W S G OUR PROCESS
- 10. THE WEALTH STRUCTURINGPROCESS 10 Hults WSG employs an objective, disciplined process in the analysis, selection, design, acquisition and management of life insurance as a tax-efficient tool for transferring and preserving multi-generational wealth. This process involves working closely with you and your advisors to identify issues, review alternatives, recommend solutions, and manage implementation with meticulous attention. Our strategic approach revolves around the following four-step process: 1. D I S C O V E R Y 2. D E T E R M I N E T H E P L A N 3. I M P L E M E N T S O L U T I O N S 4. P L A N M A N A G E M E N T
- 11. 1. D IS C O V E R Y A good plan begins with discovery; which starts by gathering and analyzing all of the relevant data. While understanding the facts is indispensable to good planning, facts alone remain void of meaning until they are understood in the context of your hopes, concerns, values, and dreams. At Hults WSG, we listen and – with care – ask insightful questions that illuminate the path to discovery. From your data and our interview with you and your advisors, we define clear objectives that form the foundation of a good plan. Once we understand the objectives, the risks and opportunities emerge. The discovery of your objectives, risks, and opportunities – and how to manage them – marks the beginning of our disciplined approach, and leads to a plan that will stand the test of time. 2. T R A N S F O R M I N G P U R P O S E I N T O A C T I O N Once the discovery process is complete, our design team begins crafting a plan to fit your unique situation. First, by carefully analyzing your objectives and data, we isolate your financial risks. The next step involves financial, tax, and legal analysis—a process using stringent protocols for researching and testing financial models, and careful analysis of combinations of solutions. The result is a convergence of mindful recommendations delivered in a unified and understandable plan. 11 THE WEALTH STRUCTURING PROCESS
- 12. 3. I MP L E M E N T A T I O N It is at this step that the highest level of skill is applied and the greatest value delivered. We roll up our sleeves to turn your dream into a reality, applying the appropriate blend of strategies for achieving your goals. In tandem with your other advisors, legal documents are drafted; funding is secured through the appropriate vehicles; and assets are positioned and allocated to meet your Plan’s specifications. As ideas become reality, The Plan guides you to your chosen destination, while making certain that those you care about have the maps and skills to plan their own journeys. Matching Funding Strategies To Your Plan Objectives. As your advocate in the planning process, Hults WSG provides a thorough and objective evaluation of possible funding methods using proprietary analytical models such as The Trust-Owned Life Insurance Expert System ,The Life Insurance Design Questionnaire, Underwriting Advocacy, The ClearView System, and The Life Settlement Advocacy Program. Objective Advice. Hults WSG provides a comprehensive range of wealth transfer vehicles from a wide cross-section of the industry’s leading insurance providers. We are not tied to any one strategy, company or product. Therefore, multiple providers are compared and examined before funding recommendations are made. 4. P L A N M A N A G E M E N T We believe that maintenance and vigilance are critical, and they have much in common. Standing guard over your loved ones and your personal financial goals is far more than simple common sense. It amounts to good stewardship. With your wealth management, this heartfelt vigilance can only be realized from constant monitoring. To perpetuate what you have accomplished thus far in the process, we establish regular reviews to gauge your plan’s performance, and make adjustments for changing laws, regulations, market conditions, and investment performance. The review also takes into account your changing personal and financial circumstances. 12 THE WEALTH STRUCTURING PROCESS
- 13. MERRILL LYNCH PRIVATE WEALTHMANAGEMENT H U L T S W S G EXPERT ADVICE
- 14. 14 P. SCOTTHULTS CLU ChFC Scott Hults has been involved in the design and implementation of advanced planning strategies for some of the nation’s wealthiest families as well as leaders of Fortune 500 companies. For many of these families, this involves working with their legal, tax and investment advisors to establish, fund and leverage multi-generational wealth strategies, frequently in tandem with philanthropic techniques. A graduate of the Colorado State University with a degree in Accounting, he received the designations of Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC) from the American College and holds FINRA Series 7,26, 63, and 66 licenses. With more than 16 years of focused experience in the areas of wealth preservation and transfer, Mr. Hults was formerly a Vice President and Ultra-High-Net-Worth Wealth Management and Insurance Specialist with Merrill Lynch. Before joining Merrill Lynch, he was a Divisional Vice President with AXA Distributors. Other prior experience includes the Equitable Life Assurance Society of New York as a Regional Director of Training for Southern California and the Pacific Northwest. He also served as the Securities Product Coordinator for the Irvine and San Francisco offices and Assistant Agency Manager of the Irvine office. Scott and his wife, Emer, live in Los Angeles with their three children, Veronica, John and Sofia. P R I N C I P A L
- 15. 15 THE VALMARKCOMPANIES Hults WSG is a Member Office of the ValMark Companies, an independent insurance buying cooperative with an estimated $30 billion of in-force life insurance with a select group of leading life insurance and investment companies specializing in wealth transfer funding. This combined buying power creates the opportunity for preferred access and leverage to negotiate optimum arrangements on behalf of our clients. The ValMark Companies: Global Resources and Best-In-Class Expertise The exclusive, private services made available to clients of Hults WSG are provided by one of the most distinguished professional teams in the wealth transfer industry. This senior team of over 90 professionals includes: AN UNDERWRITING DIVISION with four former insurance company Vice Presidents of Underwriting, a licensed physician and former insurance company Medical Director; and a senior staff of case management, business processing and policy service specialists. A S T R A T E G I C A L L I A N C E HIGHLY CREDENTIALED AND SKILLED CASE ADVISORS, including two attorneys, two accountants, three MBAs, two Certified Financial Planner® Practitioners, one of the industry’s most respected Life Settlement Authorities, four Chartered Life Underwriters, and three Chartered Financial Consultants – all of whom are FINRA Registered Principals. AN INFORMATION TECHNOLOGY DIVISION managed by the former IT head of BISYS. VALMARK’S PRESIDENT AND CEO is an attorney and Certified Financial Planner® Practitioner; has served on the National Board Member of the Association for Advanced Life Underwriting and the Million Dollar Round Table Foundation; and is author of the insurance portion of the Certified Financial Planner® insurance examination.
- 16. 16 HULTS WEALTHSTRUCTURING GROUP A M E M B E R O F F I C E O F T H E V A L M A R K C O M P A N I E S Hults Wealth Structuring Group’s California Life Insurance License is # 0B12687. Securities are offered through ValMark Securities, Inc., Member FINRA, SIPC. Investment Advisory Services are offered through ValMark Advisers, Inc., an SEC Registered Investment Advisor. 130 Springside Dr. Suite 300 Akron, OH 44333. (800) 765-5201. Hults Wealth Structuring Group is a separate entity from ValMark Securities, Inc. and ValMark Advisers, Inc. I M P O R T A N T I N F O R M A T I O N A B O U T L I F E S E T T L E M E N T S In a life settlement arrangement, the current policy owner transfers the ownership and beneficiary designation to a third party, who will receive the death proceeds upon the death of the insured. Individuals considering life settlements should carefully read the entire sales agreement, consult their advisors, and consider all available options before selling their policies. ValMark Securities and its registered representatives act as brokers in the life settlement transaction and may receive a fee from the purchaser. Consult your tax advisors regarding the taxation of life settlement proceeds. Neither ValMark Securities nor its registered representatives provide tax advice. ValMark Securities considers Life Settlements as a security transaction.