Client: A successful private-equity investor and his wife had accumulated significant wealth and were confident that they would be able to enjoy the remainder of their retirement, focused on their large family and philanthropic interests. They were concerned, however, that their assets would not be managed appropriately beyond their lifetimes and that their heirs would not be able to work together to manage their family foundation and preserve their values with respect to educating and protecting future generations.
Solution: Evercore Wealth Management worked with the couple and their legal advisors to set aside a pool of assets to protect the client and his wife for the remainder of their lives. They also advised in executing wealth transfer strategies, including grantor retained annuity trusts, installment sales to defective grantor trusts, and intra-family loans, which enabled the couple to transfer assets to the next generation while minimizing the effect of transfer taxes. Our wealth advisors also focused on establishing entities in appropriate jurisdictions to enhance the asset protection of long-term family assets.
Asset allocation strategies were customized for each family entity as most appropriate to their circumstances, factoring in their tax characteristics, cash-flow goals, risk tolerance and ultimate beneficiaries. For those entities that held assets for future generations, the portfolios were allocated with a heavier weighting toward growth investments.
Our wealth advisors then analyzed the long-term objectives for charitable giving, not only for the client and his wife but also for their adult children, resulting in a draft family mission statement that captured the interests of the two generations while providing adequate flexibility to encourage the participation of future generations. The client then contributed a pool of long-term appreciated assets to the family foundation, enabling them to preserve and share these collective philanthropic values.
Finally, Evercore Wealth Management and our affiliate, Evercore Trust Company, worked with the client and his family to appoint trustees and establish a Family Investment Advisory Committee to support them in their long-term investment decisions.