Established Executive
With great success comes increased demands for your time, talent, and attention.
The sheer volume of decisions at work and at home can leave you feeling overwhelmed and off balance. Having a trusted partner to help relieve the pressure can give you back precious time and energy to focus on Who and What need your attention most.
Background
When promoted to head a division of a global bank, our client’s plan to retire early was put on pause. At the same time, his parents’ health began to decline, increasing their need for care.
Adding to the complexity, the client’s personal and employer benefit accounts bridged the Atlantic Ocean with accounts in both the UK and US. With a need to balance both US and international tax rates, retirement plans, and related employer benefits in multiple currencies, keeping track of all that needed to be done while remaining compliant with intense regulatory oversight could have been a full-time job.
The demands of a new position, kids entering college, and parents needing assistance as their health declined, created a personal tsunami. Our client needed a partner that could lighten the load while shifting all elements of his current plan to fit his new reality.
Key Concerns
- The new position required additional compliance oversight requirements and asset restrictions.
- His parents required additional assistance, adding to his responsibilities.
- Assets created to fund his now postponed goals had to be repositioned in a tax efficient way.
- High executive compensation, family business ownership, and multiple rental properties made minimizing taxes a challenge.
- Charitably inclined, he wanted to continue benefiting multiple charities without running afoul of strict regulatory requirements.
- As partial owner in her family’s real estate business, his wife’s portfolio of commercial and vacation rental assets added to an already complex asset, tax, and income scenario.
- With growing teenagers, it was a challenge to balance college preparation, the needs of his parents, and his own personal needs and goals.
Client Priorities
- Asset Structure & Location – Reassess structure of assets set aside for goals no longer needed
- Caring for Parents – Balance increased needs of parents with their own personal goals
- Giving Back – Coordinate, track, & execute complex annual charitable gifting strategies to minimize taxes
- Risk mitigation – Maintain strict compliance with regulatory reporting requirements and approvals for all investment, donation, and asset purchase or sale decisions
- Estate planning – Update strategies and asset structure to align with changes in goals, legislation, family dynamics, and their children’s college plans
The Results
Aligning goals with changing needs and responsibilities
- When both daughters received college scholarships, we repositioned amounts equal to their annual scholarships to leverage tax-free withdrawals and repurposed the funds for other goals. We established future plans based on pending legislation to allow for additional college funds to be moved to other accounts so the kids could still benefit as recipients on a tax preferred basis.
- As his parents’ health declined, our client was unsure how to navigate either the changing family dynamic or his new financial and legal responsibilities for their care. We coordinated closely with our client, his parents, and their attorney to get all the appropriate legal documents in place to ensure he had immediate access to their health and financial records and help to break down all the ‘To Dos’ needed to assume financial responsibility for a parent’s health and financial decisions and protect them from elder fraud.
- We created a plan to coordinate, execute, track, and report all charitable contributions. Working directly with each charity, the charity’s financial advisor, and bank compliance when needed, we ensured all donations were completed, communicated, and documented to meet the charity, tax, and compliance reporting requirements.
- We tracked all employee stock ownership to ensure all company stock trades complied with desired thresholds while mitigating concentration risk. We also coordinated with the internal bank compliance department to ensure proper approvals and reporting of all investment transactions.
- We worked with the client’s attorney to update all estate planning documents to ensure the right people were placed in decision-making positions for both personal and business assets and that the asset distribution matched the client’s newly redefined intent.
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We understand how to navigate the complexities of being an executive because we've faced it first-hand
