Have you thought about simplifying your investment portfolio to remove additional stress?

One of the benefits of partnering with a wealth advisor is that we can take a step back from your situation and evaluate your complete financial picture through an impartial lens. By doing so, we are able to provide advice or insight that might otherwise remain overlooked. 

A family came to us looking for investment counsel following the sale of their company. After our initial review of their assets, we determined that they were not fully taking advantage of some key opportunities in their approach to financial planning, including cash flow planning, estate planning, and family gifting. Despite their impressive investments, the family needed to “start at the beginning” with a review of their overall plan. The family’s portfolio included an extensive yet somewhat eclectic suite of real estate properties. As part of our conversation, and to better understand their assets, we built a flow chart summary of all their properties which included how the properties were held, by what entity, and the cash flow generated by each property. 

By taking the time to dig into their entire portfolio and review their real estate, we were able to identify that a handful of their properties were held in the Family LLC (with the parents and adult children as members), while the remaining properties were held in joint ownership by the parents. This observation jumpstarted an important piece of our financial planning for the client, namely, uncovering the rationale for holding these properties in the Family LLC. After concluding that there was no longer an estate planning reason for these properties to be held in the Family LLC, we confirmed our beliefs by working with a trusted estate attorney. 

The attorney updated their wills and other estate planning documents, and then moved the properties out of the Family LLC and into joint ownership by the parents. This allowed the family to improve cash flow to the parents, achieve a step-up in cost basis for the children upon the passing of the parents, and hold all their real estate in one form. By making these minor tweaks, we were able to simplify their lives considerably.

Location

Bellevue, WA

Service(s)
  • client goal

    Simplify Investments

  • Years with Freestone

    15 years

  • cash flow increase

    100%

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