How we helped our client instill responsibility and direct his wealth for future generations

In addition to focusing on the economic benefits and tax advantages of estate planning, we discussed the emotional drivers behind our client's decisions—from the psychology of gifting and communicating a gift to their children to the intent of the gift. Like many of our wealthy clients, this patriarch wanted to ensure his wealth lasted for generations, and that his descendants continued to be productive citizens who understood the responsibility of inherited wealth.

The situation

Our client was a wealthy patriarch with a large blended family— three adult children from his first marriage and three younger adult children from his current second marriage. He had a $40 million real estate portfolio as well as a $70 million liquid investment portfolio. Understandably, he had concerns about wealth transfer and his children's involvement in his estate after he passed. Maintaining strong family bonds and healthy communication among his were important priorities, particularly in light of his plans to gift assets.

The strategy

We coordinated two days of meetings with our client, the UBS Advanced Planning and Family and Philanthropy Advisory teams so we could focus on his estate planning strategy.

Working collaboratively with our planning specialists, we accomplished the following:

• Made equal smaller gifts to the children
• Appointed each child as a co-trustee along with another trustee. They would work together to implement investment guidelines. Our goal was to educate as well as encourage financial responsibility.
• Our client also maintained a larger trust during his lifetime, and appointed his current wife as trustee.
• We planned a family meeting to facilitate a thoughtful discussion about the family’s shared history, core values and vision for the future. This helped parents and children articulate and reinforce their most important priorities as a family. In addition to feeling more financially fluent, the client’s children gained greater clarity around the family’s most important goal—creating an enduring legacy.

The results

Our client was not only pleased with the tax benefit of his estate planning strategy, he felt confident that his children understood the scope and potential impact of their inheritance. He was comfortable knowing that they had acquired much-needed skills and insight to handle their family's wealth responsibly in the future.