Managing wealth after the sale of a private business
Objectives
After the sale of a private publishing business valued at $30,000,000, the wealth creator and members of his family were concerned about growing the purchasing power of their investments and avoiding the permanent loss of capital. They wanted to accomplish three goals:
- Achieve successful investment results
- Develop a gift and estate plan to transfer wealth over time to family and charities
- Educate the second generation, aged 18-24, on family values and the responsibility of managing the family’s wealth
Solution
For each of these goals, we worked with the family to develop and agree upon policies and success factors. We then designed wealth transfer goals around the lifetime objectives of preserving financial security for the first-generation wealth creators and their children while taking advantage of tax law changes and evolving family dynamics to transfer wealth to future generations; this included charitable organizations consistent with the family’s values and distribution goals. We also implemented a multi-year family education program designed to provide the second generation with the resources necessary to make informed decisions about asset allocation, manager selection, tax and estate planning.
Summary of Services Provided
- Investment strategy, asset allocation and portfolio construction
- Comprehensive balance sheet and performance reporting
- Wealth transfer strategies for gifts and future estates
- Family education
