In planning and organizing multigenerational family wealth, Clearstead brings clarity, transparency, and simplicity to complex family wealth situations. We offer comprehensive multigenerational wealth planning services, through which our experienced team of professionals can help ensure your legacy is maintained and managed in a long-term and effective manner. In 2019, we hosted a ClearPoint Roundtable about strategies for wealth transfer to the next generation.
Step 1: Gain Clarity
Clearstead begins by asking a potential client to bring us as much data as possible: trust documents, tax returns, insurance, bank statements, private placements, and capital calls, etc.
Our team then analyzes all aspects of these documents and generates a complementary ClearSight Analysis, which is a customized report filled with observations and actionable opportunities. This analysis covers all areas of your financial world, such as investment portfolios, tax planning and compliance, estate configurations, cash flow planning, insurance planning, charitable planning, wealth transfer, and multigenerational planning. The analysis essentially serves as a road map for the next 12 months; it’s our way of quantifying how much value we can add from day one.
Step 2: IDENTIFY PRIORITIES AND BEGIN TO EXECUTE
At the outset of our relationship with new clients, particularly those that involve several family members across generations, we collaborate on priorities and develop a timeline for implementation. This will span all areas of our service model: investments, financial planning, taxes, and family office administration. Most of these opportunities are identified in the ClearSight report.
Financial Planning priorities vary by client. For some, the estate plan needs a lot of attention. Others may need an insurance review. Nearly all clients need a review of cash flow planning, whether it’s long-term, such as preparing for retirement, or short-term, such as deciding whether to finance a home or make purchases using portfolio assets. This will often dictate investment strategy.
For investments, we begin by creating an investment policy based on the client’s goals, time frames, and risk tolerance. These policy statements serve as a guide for managing things like assets and educational trusts. Everyone within the family structure might have their own policy that is unique to their personal goals. Once policy is set, portfolio implementation can begin.
Tax planning begins with a multi-year tax projection. Clearstead can often highlight potential savings simply by identifying appropriate strategies that previous accountants missed.
Step 3: Next-Generation Engagement
Clearstead also has experience in teaching younger generations about managing family wealth. We will often work with the senior generation while the children or grandchildren are young and discuss goals, then craft a plan that teaches responsible fiscal behavior.
Typically, Clearstead holds annual family meetings with clients, as well as periodic meetings with the individual clients who are part of that larger family. Ultimately, our goal is to strategize with our clients to help them realize their goals while protecting the wealth they have worked so hard to build.