Case Study 1 - Grantor
▼ Widowed, age 66
▼ 1 son, who has 3 children
▼ Approximately $3,000,000 in liquid assets, including variable annuity of about $300,000
▼ Is contingent remainderman for various family trusts, valued at about $2,000,000
▼ Is vested remainderman for family trusts, valued at about $1,000,000
Actions initiated and coordinated by Miller Gesko
▼ Funded a Net Income Makeup Charitable Remainder Unitrust with the annuity. Took immediate deduction for future charitable interest, subject to 50% limitation. Used 5-year disallowance carryover to offset capital gains taken in diversification program in taxable portfolio.
▼ Set up Dynasty Trusts for Grantor's grandchildren. They gave discretion to the two trustees (her daughter and a principal of Miller Gesko) to make distributions to the grandchildren for health, education, maintenance and support. Grandchildren were given testamentary powers of appointment. Trusts have generation skipping tax elections, spendthrift provisions, and creditor protection.
▼ Set up Revocable Trust for Grantor. Instrument establishes generation skipping trusts and charitable remainder trusts with life estates for children.
▼ Set up Inheritor's trusts for son and daughter, who are contingent remainderman of family trusts. Instruments provide management and asset protection during their lifetimes, and flow to their children's Dynasty Trusts upon their deaths.
▼ Changed beneficiary designation of Grantor's IRA to daughter's Inheritor's Trust with disclaimer to grandchildren's Dynasty Trusts.
Case Study 2 - Family with extensive real estate
holdings
Miller Gesko assisted probate counsel to-
▼ Liquidate real estate holdings of both husband and wife after their deaths.
▼ Prepare estate tax returns for both estates, including calculation of charitable deductions.
▼ Set up charitable remainder trusts and private foundations pursuant to wills of husband and wife.
Miller Gesko's ongoing responsibilities for the family trusts
▼ Arranging for the preparation of fidiciary tax returns for the charitable remainder trusts and private foundations.
▼ Arranging for the filing of annual charitable filings with NY Attorney Generals Office.
▼ Arranging for the preparation of Federal private foundations excise tax returns.
▼ Ongoing administration of real estate still held in trusts.
▼ Scheduling and sponsering quarterly meetings of trustees of private foundations.
▼ Preparation of annual accountings and periodic judicial settlements for trusts.
▼ Calculation and payment of trustees' commissions.
Case Study 3 - Client with account at Wall Street Firm
Client, a business owner nearing retirement, had assets in various taxable and tax-deferred accounts set aside to supplement his retirement. They were handled by a broker from one of the brand name Wall Street firms (firm is now defunct). The funds were invested in a "wrap" account, with various outside separate account managers. Because the broker was not handling the account personally, he was not aware that there were many redundancies in investment sectors and even individual securities. The client received a high volume of mailings from the firm's New York operations center due to the frequency of trading from the outside managers. When the stocks went into a bear market, the client was assured that the investments were "suitable" for him, based on his investor profile. In this situation, the client experienced substantial losses, and recognized that his account was out of control.
Client moved his accounts to Miller Gesko, which took the following steps-
▼ Created a detailed retirement plan and estate plan in conjunction with the client's attorney and accountant.
▼ Established an investment policy statement, taking into account the client's risk tolerance, investment horizon, income tax bracket, and projected retirement income needs.
▼ Maximized after-tax returns by assigning tax efficient assets to taxable accounts, and tax-inefficient assets to tax-deferred accounts.
▼ Restructured the portfolios by incorporating the investment policy statement into an asset allocation model designed specifically for the client.
▼ Monitored the portfolio at regular intervals, and rebalanced as necessary.
▼ Upon the sale of his business, Miller Gesko incorporated the proceeds into his investment strategy.
▼ Established a schedule of regular meetings with client to review portfolio performance, and periodically adjust investment strategy as needed.