Early one morning in the summer of 1970, Fouyard, my grandfather’s prize bull, broke out of his pasture in an impressive lunge for freedom. A nearly two ton Charolais, white as buttermilk, he’d heard the siren call of the nearby cows and he was feeling romantic.
Massive, muscled and ornery, Fouyard was the pride of the herd. Hap, my grandfather, was a rancher in northwest Illinois. I spent summers there as a boy, helping with chores and trying not to get gored by the bulls.
Humorous as it sounds in retrospect, Fouyard’s ramble was no joke at the time. We hurriedly set out to track him down to protect our neighbors.
Working for the common good has been a defining attitude on the prairie since families ventured west in wagon trains. Success was far more likely when pioneers joined forces. Those who forged ahead solo often would fail catastrophically.
Pioneers learned to "circle the wagons" at night or whenever trouble arose. That tactic prevented horses and cattle from wandering off and the wagons provided a barricade against marauding gangs or bandits. Survival depended on safeguarding assets.
Savvy families adopt a similar strategy today to safeguard assets. But they aren’t positioning the wooden prairie schooners of yesteryear. Today’s protective strategies require a phalanx of professionals including investment advisors, insurance experts, appraisers, accountants, and estate planning attorneys.
Creating a modern wagon circle takes time and money. But failure to do so can leave a family and its assets vulnerable to attack. Vigilance is key. Just as the pioneers posted sentries at night to sound the alarm if trouble appeared on the horizon, today’s wealthy families demand the same watchfulness from advisors.
Market conditions must be monitored as well as government regulations and changes in the law. Tax law, for instance, evolves continually.
Communication is essential. If the CPA isn’t aware of the legal strategy, there’s a risk of a gap in defenses. If financial advisors ignore state or federal tax consequences, assets may be at risk. If an estate plan is ignored, there’s a heightened risk of attack from a hostile taxing authority.
Wise families understand that life is an adventure, brimming with opportunity but also fraught with peril. They circle their wagons. They encourage teamwork among advisors to narrow the gaps of vulnerability.
As for Fouyard, what of his great escape? Long before he reached the cows in the pasture of paradise, he blundered into a busy road and was hit by a pickup truck. The truck was destroyed; the driver was fine. And the Romeo of the Prairie ambled back home, disappointed, but with barely a scratch on him.