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| A retired chief executive of a Fortune 100 company needed a consolidated overview of his portfolio, which included numerous accounts at multiple financial firms, complex alternative investments and substantial interests in real estate, fine arts, aircraft and other property. He wanted to implement "cutting-edge" estate planning strategies to benefit his children and grandchildren, to reduce transfer tax liabilities, and to ensure that his assets were all adequately protected. |
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| Expert Advisors Our Private Wealth Advisors introduced the client to the Family Office team, which conducted a complete review of the client's investment, estate planning, tax and administrative structures. The Family Office team then worked in partnership with the client's lawyers, accountants and tax professionals to develop a long-term strategic plan. |
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| Exclusive Access Working in concert with the Private Wealth Advisory team and the client's outside advisors, the Family Office team prepared a formal review of the client's complete wealth picture, and translated the existing estate plan documents into a projection of tax and wealth transfer results. A thorough analysis of the client's cash flow requirements, insurance needs, bill payment and tax compliance processes enabled the Family Office team to recommend informed investment and wealth transfer strategies, and establish maintenance procedures to satisfy legal and tax-reporting requirements. The resulting solutions included a series of rolling Grantor Retained Annuity Trusts (GRATs) utilizing concentrated positions, a Charitable Lead Annuity Trust (CLAT), and dynasty trusts created by the client's lawyers for his children's families. The Family Office team also coordinated a thorough insurance review, created a new entity structure to manage the family aircraft interests, and formalized the management of the family's private foundations and philanthropic participation. |
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| Custom Services The Family Office team organized periodic family meetings, enabling the client to involve his children in the investment and philanthropic programs. Eventually, the Family Office team began to serve as a central office for all three generations, handling virtually every need, however unique and challenging. |
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| Our client's family looks to its Family Office team as its primary resource for coordination and oversight of all financial needs, while managing a highly diverse investment portfolio. The client is able to focus on enjoying retirement activities without the burden of administrative stresses that would otherwise require a personal staff. Moreover, the client is confident that the family's affairs are in good order for intergenerational succession. |
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| To learn more about our Family Office services, contact a specialist at pbig_familyoffice@ml.com. |
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| This case study is intended to illustrate products and services available at Merrill Lynch. It may not represent the experience of every client, nor does it indicate future performance. Investment results may vary. The investment strategies presented are not appropriate for every investor. |
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