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| Preparing for the Transition of a Trust to a Large Number of Beneficiaries |
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| Client |
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A family with four generations of living members has a trust with more than $50 million in assets that will be distributed in the coming year.
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| Need |
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The trust will be distributed to over 12 beneficiaries, ranging in age from 18 to 70. The family needs help with:
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- Re-aligning investments with a focus on tax efficiency. The trust is heavily concentrated in stock positions with substantial gains, necessitating professional tax management with the portfolio rebalancing and subsequent distributions.
- Transparent communication. Some of the beneficiaries have concerns about the process and involvement of other family members.
- Family education. Many of the beneficiaries have never managed wealth and need guidance for proper long-term planning.
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| Silver Bridge Solution |
Silver Bridge began active management of the trust assets in order to transition the assets in the most tax-efficient manner possible. After consulting with family members regarding their short and long term priorities, Silver Bridge began rebalancing the trust portfolio to align with beneficiary goals, eliminating over-concentrated stock positions in the process.
Silver Bridge coordinated a family meeting with all beneficiaries to clearly explain its work, to outline next steps in the process, and to address any questions or concerns. As part of the family meeting, Silver Bridge provided each individual with a trust binder with important information about the trust structure, the investment strategy, and the expected future income and principal distributions.
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| Outcome |
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The trust is currently managed in closer alignment with the beneficiaries’ collective short and long term goals, and leverages a wider range of asset classes to meet those goals. The thoughtful transition included effective tax planning, which reduced the tax impact. Silver Bridge helped the beneficiaries attain a greater understanding of the trust assets, how they are managed and what their estimated income distributions are likely to be.
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Advantages Offered by
Silver Bridge |
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- Silver Bridge’s 80-year heritage of investment expertise
- Proprietary investment strategies, including the Large Cap Equity Strategy
- Ability to provide tax-efficient investing
- Experience in providing education to families with substantial wealth
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