Helping successful families establish a family office
Once a successful family experiences a liquidity event such as selling a business, we recommend the establishment of a family office, a standalone office that consolidates investment management, estate planning and insurance advice, leverages our knowledge and capabilities, and coordinates the cumulative wisdom of other professionals.
Family offices can provide a diverse range of services such as budgeting, insurance, charitable giving, family-owned business guidance, wealth transfer, tax mitigation, philanthropic activities, trusts and legal matters. In addition, the family office can also handle nonfinancial issues such as private schooling and travel arrangements.
Having a family office enables a family to enjoy a full integration of financial strategies and directly oversee decisions regarding family financial matters, while maintaining tight control of the privacy and security of the family’s financial information.
A Multigenerational Non-qualified Pension Case Study
THE “WHAT IF”?
What if a couple in their 60s wanted to gift $1 million to help ensure that their son and grandson would have income for life?
We would execute a multigenerational trust designed to provide income to their son during his life if needed, and fund it with $1 million in cash. It would accumulate tax deferred for two generations. At the son’s passing, $11,123,582 withdrawal value would pass free of estate taxes in his estate. Income to the grandson over his lifetime could stretch to $30,993,192.
This hypothetical example is for illustrative purposes and is not representative of any actual experience. Individual results will vary. This is not a recommendation and you should consult with your financial advisor for advice based on your personal situation, financial goals and objectives. Guarantees are based on the claims paying ability of the insurer. Raymond James does not offer tax or legal advice. Please consult the appropriate professional before making any decision that may affect your tax or legal situation.
Raymond James does not provide tax or accounting services.