Your life is unique. Your wealth strategy should reflect that.
A few examples of coordinated planning across disciplines — the work behind a single, aligned picture.
Planning the sale of a large business
For a couple who has spent years building significant value in their business and are now ready to sell, but who has done very little estate planning prior, we would lay out a timeline that makes sense for their situation and help them engage estate planning attorneys suited to their needs. If the chief concern is how a large increase in family wealth will affect their children, we can give them a set of considerations and potential trust structures to weigh within their estate plan. There is potential to identify and consider industry-specific programs that could serve as additional tools for tax efficiency at sale. It's also routine for us to consider insurance needs for the individuals, family, and business in these situations.
A tech employee preparing for a potential IPO
Consider a hypothetical employee of a well-known private technology company who isn't sure what to do with the options he or she holds in the company. Working alongside the CPA, we would evaluate the impact of exercising ISOs and NSOs — specifically the tax consequences under each scenario. From there, we then build a base case for how the company's valuation might move ahead of a potential IPO, and exercise positions accordingly. For large tax bills, we may suggest opening a line of credit against the employee's after-tax investment portfolio to help fund the liability, letting him or her exercise sooner rather than later — a potential advantage over waiting for liquidity. Such events could also lift the tech employee's net worth to a level where the estate tax exemption would factor into future planning, and we would advise on how best to provide for the family members and philanthropic interests that must be cared for.
A family coordinating wealth and business operations across multiple generations
In situations where families who have been clients of a financial institution for many years experience significant disruptions (e.g., personnel changes, mergers, sales, policy changes, technology incidents, etc.), it can be difficult to find a new set of advisors who can service the family's extensive needs. We consider the aspects of any transition with care — mindful of family dynamics, privacy, and the operational needs of both businesses and the family office. We are able to manage large pools of investments that spread across individuals, businesses, trusts, and limited partnerships, with a distinct investment policy statement crafted for each. Traditional banking, including deposit accounts and treasury management services, can be established so money movements are accessible, while custom lending arrangements may be structured for various needs, even for complex situations. Generally, the family will have a single point of contact at Kento.
