AN OVERVIEW OF THE FIRM S SERVICES

Transcription

1 AN OVERVIEW OF THE FIRM S SERVICES From its inception, the Firm has focused on the issues that are important to individuals and families with significant assets. During its history, the Firm has increasingly widened the scope of its services in response to its clients' needs, to include not only comprehensive financial advisory services, but many non-financial practice areas as well. Today the Firm's professionals concentrate principally on providing services to clients in the following areas of specialization: Gift and Estate Tax Planning Family Wealth Preservation Planning Business Succession Planning Philanthropic and Charitable Planning Investment Advisory Services Selection of Asset Managers and Performance Monitoring Asset Allocation for Various Family Entities Private Equity Due Diligence Life Insurance Due Diligence Comprehensive Third Party Review of: Carrier Strength Contract Structures and Payment Mechanics Tax Implications Domestic and Offshore Alternatives Interim Company Management / Board Representation Family Risk Management Family Wealth Education

2 GIFT AND ESTATE TAX PLANNING The Firm's Gift and Estate Tax planning practice for high net worth individuals and families covers all areas of planning for the preservation and disposition of family wealth. With a sound approach which utilizes legal, income tax and estate planning techniques, the Firm serves a national clientele and has earned a reputation for developing and implementing creative, yet understandable, planning strategies. Working alongside the client's other planning professionals, the Firm enjoys an active practice with client engagements around the country. One of the more challenging aspects of designing family wealth preservation plans often entails the implementation of a strategic estate liquidity plan for the client and the surviving family members. The Firm's reputation in this complex area is widely recognized for delivering unique solutions in such funding engagements. For families choosing to evaluate life insurance funding as a component of their planning, the Firm has developed a comprehensive due diligence process that is most useful to the family and its other advisors. The Firm's streamlined approach to this topic is designed to enable the planning team to make intelligent decisions in this often confusing area. Since many of the Firm's clients own substantial closely held companies, business succession planning is often an integral component of the family's planning. The Firm has significant experience in dealing with all aspects of this sensitive issue. Whether the transition involves multiple generations of family members, other key management personnel and employees, or a third party disposition, the Firm can utilize its considerable expertise to provide a solution that is properly integrated with the family's overall planning.

3 GIFT AND ESTATE TAX PLANNING (CONTINUED) For many families with significant holdings, philanthropic and charitable planning play a key role. Here, again, the Firm has a long history of counseling clients on the merits of a wide variety of planning vehicles, such as private family foundations, public charitable organizations, community foundations, charitable supporting organizations, charitable remainder and lead trusts, and other planned giving strategies.

4 INVESTMENT ADVISORY SERVICES At the Firm's inception, the founders decided that their clients would be well-served in the investment area by an advisory approach that is consultative in nature. That is, the Firm generally does not buy, sell or custody securities, nor does it directly manage its clients' investable assets. Rather, the Firm's professionals sit on the client's side of the table and approach this task from a broader perspective. We are often asked to coordinate the clients' entire investment advisory process, including understanding the investment objectives for each family entity, developing specific statements of investment policy for each entity, interviewing the managers to be considered, data compilation and screening of such managers, manager selection and fee negotiation, and, just as important, ongoing performance monitoring, with changes made as necessary. Some of our client families have full-time in-house investment management professionals, while others outsource the entire function. Our approach is customized to accommodate whatever level of participation the client desires.

5 LIFE INSURANCE DUE DILIGENCE For many wealthy families, the acquisition of significant life insurance can be an important part of the overall wealth preservation plan. As the advisory team evaluates whether insurance will be economically viable to achieve specific objectives, it is imperative that a comprehensive assessment is made of the alternatives available. Over the years, the Firm has developed an in-depth due diligence process of all aspects of the "large" life insurance funding. This due diligence includes a thorough review of the financial strength of the carriers in question, types and structures of contracts in the market, payment mechanics, income, gift and estate tax ramifications, and both domestic and offshore alternatives. While the Firm may receive compensation for the placement of insurance, the Firm is not affiliated with any one insurance carrier, and has developed long-term relationships with significant contacts within most of the major carriers. This independent approach is designed to bring in the best offers available in the marketplace and deliver substantial value to our clients. The Firm has the ability to facilitate and simplify medical underwriting, and can handle the entire process, from initial review, to implementation and ongoing monitoring.

6 INTERIM COMPANY MANAGEMENT / BOARD REPRESENTATION A number of years ago, as an extension of the firm's investment advisory practice, several of our clients asked for our counsel regarding private equity investing. These services include evaluating the merits of investing in angel, venture and commercial enterprise activities proposed to our clients, as well as the most tax efficient structure for the investment in these companies. In some cases, our client's investment is substantial enough to warrant Board representation, and the ability to participate in management on an interim basis to solve transition and business succession issues. The firm is prepared to provide this representation for our clients and, when necessary, participate in management on an interim basis to solve transition and business succession issues. These services also are available to establish the appropriate structure and corporate governance in situations where existing management will continue to be a part of the longterm solution for the company. Services provided include: Turnaround Situations Corporate Recovery Crisis Intervention Operational and Financial Consulting Interim Management Wind-Down Management

7 FAMILY RISK MANAGEMENT As part of the overall engagement, clients often request the Firm to assess and implement improvements to the client's family risk management program. Utilizing a number of highly-specialized third party resources, the Firm's work in this critical area helps our clients to attain greater peace of mind. Risk management evaluations include a thorough understanding of the asset base, quantification of financial loss potential, assessment of loss prevention measures and a careful review of existing insurance contracts. In addition to basic issues such as the insuring of residences and rental properties, and personal liability exposure, this process frequently includes one or more specialty areas, as applicable, such as fine arts, collectibles, aviation, luxury yachts, bloodstock, recreation and collector vehicles, and kidnap/ransom. When relevant, potential exposure due to professional liability and director's and officer's liability is also addressed. In some cases, offshore alternatives may merit consideration, and these can be evaluated and implemented as well. Comprehensive risk management planning also is expanded to ensure that the assets of every member of the extended family, and related entities, are properly protected from financial loss.

8 FAMILY WEALTH EDUCATION In most family wealth planning cases, the non-financial considerations are at least as important to the client as the purely technical aspects are, if not more so. Generally, our clients feel strongly about helping the future generations learn how to cope with and manage the issues associated with significant wealth. All clients typically want their heirs to continue to be productive, contributing members of their communities. They desire that their wealth be a facilitator of this, rather than an obstacle to achieving this goal. Important questions our clients often ask include: What is the effect of the inheritance on our children? What is our family s definition of success? How will we prepare our children for a financial inheritance? How can our children/grandchildren benefit from family philanthropy? How do we measure success over a long timeframe? What can we do to enhance family communication? How do we give younger family members appropriate responsibility as soon as is practical? Would a family vision statement be beneficial? The Firm is quite accustomed to handling this often sensitive subject in a manner that is specifically tailored to each client's goals. This includes, as our main objective, ensuring that the underlying planning structure and techniques employed are consistent with the client's wishes. Frequently, considerations include involving the heirs in appropriate fiduciary positions, and conducting family meetings during which family members are afforded the chance to understand (always at the level desired by the client) the planning decisions and framework that are in place. During this process, family members are given the opportunity to understand the family's overall philosophy concerning wealth generation and the role that each generation will play, now and in the years to follow.