Our 75-year-old client was experiencing complete financial disorganization. He was in a second marriage with two sets of children. He had also had significant philanthropic endeavors. But he had no cohesive estate plan that addressed all his priorities and accumulated wealth. Because of our team’s ability for bringing focus and clarity to complex and sophisticated estate plans, he was referred to us for help in putting his personal and financial life in order.

Together we found an answer
We served as “financial quarterback” for our client to align all of his needs, including:

• Creating an estate planning strategy to support his long-term goals and the success of the family and foundation
• Coordinating with our philanthropic consultant who brought his “blended” family together on the issues
• Introducing a charitable foundation to which he could leave the bulk of his assets and reduce estate taxes
• Building a collaborative team of specialists—estate planning attorney, insurance agent, trust officer to advise him on all aspects of estate planning

The future
We eliminated estate taxes while providing a plan that will continue on—even after our client’s passing. Our investment plan provides consistent returns with less risk.

In terms of his stress about the future, we continue to serve as our client’s sounding board for concerns and many of his life questions. He truly trusts our advice about putting challenges in perspective and adapting to change without worry.

Neither UBS Financial Services Inc. nor any of its employees provide tax or legal advice. You should consult with your personal tax or legal advisor regarding your personal circumstances.

This case study is shown for informational purposes only and may not be representative of the experience of all clients. It is not intended to represent the performance of any specific investment or financial advisory program. Each client’s circumstances may be different. There is no guarantee of the future success of any of the strategies discussed.

Client challenge
Our client, the founder and CEO of his company, wanted to build an investment and family corporate structure to maximize his wealth and minimize income and estate taxes. Selling his business was the first step. But post-sale, he was not sure if he would have enough “conservative” assets to fund his future as well as the necessary “risk” assets to invest in new deals.

Together we found an answer
He was referred to us by his CPA and attorney. This was a collaborative effort that we organized into stages:

• Presale corporate structuring. We proposed a GRAT—Grantor Retained Annuity Trust and a private family foundation.
• Post-sale tax planning. We proposed a combination of a fixed- and variable-rate securities backed loan to pay for a portion of the capital gains tax bill from the sale.
• Post-sale estate planning. Our planning group reviewed his complex estate plan and made recommendations.
• Post-sale investment structuring. We proposed tax-free municipal bonds, ETFs and stocks. He was new to significant wealth so we invested slowly over a 12- to 18-month period.
• Ongoing investment management and monitoring. Over time, we introduced new opportunities from private equity to real estate. We continue to provide performance, income and risk vs. reward guidance.

The future
Our coordinated planning helped him save on taxes and realize his charitable dreams and interests through his family foundation. We’ve simplified his corporate structure and trust documents so that he and his family fully understand their finances. Finally, he has a foundation of conservative investments, insurance coverage, asset protection from creditors and enough to invest in new private companies that look attractive to him.

Neither UBS Financial Services Inc. nor any of its employees provide tax or legal advice. You should consult with your personal tax or legal advisor regarding your personal circumstances.

Insurance products are issued by unaffiliated third-party insurance companies and made available through insurance agency subsidiaries of US Financial Services Inc. Guarantees are based on the claims paying ability of the issuing insurance company.

This case study is shown for informational purposes only and may not be representative of the experience of all clients. It is not intended to represent the performance of any specific investment or financial advisory program. Each client’s circumstances may be different. There is no guarantee of the future success of any of the strategies discussed.

Client challenge
Our client, a professional baseball player, had enjoyed a “celebrity lifestyle” for many years and was on the back end of a guaranteed contract. He had nagging concerns about the future that needed attention, but he was surrounded by people who were not effectively helping him. He had no cohesive plan, had not saved enough for the future and was destined to run out of money at a very early age. In essence, he did not have the right team in place to address the real problems—lack of planning, overspending and incomplete advice.

Together we found an answer
Through education and transparent conversations, our team helped him:

• Clarify and prioritize goals
• Build a collaborative team to advise him on all aspects of his financial life. In addition to our team, we included a CPA, real estate specialist to assess holdings, a lender to consolidate debt and business manager to track spending

Giving up control was an important concern for our client. But we involved him every step of the way. Together, we created a detailed plan of action—a “road map for success”—for the next 24 months.

Our plan covered:

• Savings. Save 35% of his salary over the next three years.
• Homes. Sell two homes immediately. Hold third home until market improved.
• Debt. Pay down loan on primary residence and then refinance at a lower rate.
• Spending. Sell two cars, boat, reduce family spending over two years.

The future
Our plan was successful. Our client is now “set” for life, and can also help other family members and give back to the community. Without the financial stress and weight on his shoulders, our client’s performance on the field improved. He is our client for life and continues to refer us to his contacts—teammates, attorneys and business management professionals.

Neither UBS Financial Services Inc. nor any of its employees provide tax or legal advice. You should consult with your personal tax or legal advisor regarding your personal circumstances.

This case study is shown for informational purposes only and may not be representative of the experience of all clients. It is not intended to represent the performance of any specific investment or financial advisory program. Each client’s circumstances may be different. There is no guarantee of the future success of any of the strategies discussed.