Situation: The husband of a couple in their late forties has been very focused on building his business, which he owns equally with a partner. His wife has been busy with several charities and raising three kids – two now in college, one in high school. The couple’s investable assets are small, relative to the size of the business. They want to get the most out of their current investments, while preparing for a potential sale of the business within five years.

Process: Century Wealth Management’s Guided Discovery process revealed that the couple was concerned about more than their investment performance. Both worried about the effect that affluence is having on their kids. They missed the closeness of their family when the children were younger, and they had different ideas about inheritance plans. A review of current documents revealed potential problems with the partner’s buy/sell agreements, a lack of coordination between business and estate plans, and opportunities to improve business performance and prepare for its sale.

Engagement:

• Coordinated comprehensive investment management across taxable accounts and company-sponsored 401(k) holdings; introduced alternative asset classes, such as private equity and absolute return to enhance risk/return profile.
• Implemented tax-saving strategies for college funding.
• Coordinated comprehensive estate plan with business partner.
• Worked with existing insurance broker to consolidate and improve life insurance policies backing up buy/sell agreements.
• Facilitated annual valuations for company.
• Initiated a strategic planning process for the business that identified and prioritized steps needed to prepare business for sale.
• Helped client implement a new employee compensation and bonus plan that tied bonuses to performance.
• Assisted family in establishing donor-advised fund and developed a family gifting plan involving the children. Generated tax savings by funding with appreciated stock.
• Facilitated family meeting where estate plan was introduced and family philanthropy goals were established.
• Helped the family research and plan an annual summer vacation.
• Identified a unique charitable interest of each family member and then sourced a related volunteer opportunity that the family could do together.
• Provided college-age children with internship opportunities through our internship program.

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Our family wealth management case studies are based on a combination of actual and hypothetical client circumstances, fictionalized for confidentiality.