CASE STUDY

Preparing a multi-generational family for the future of an $11M estate

A family with significant assets held across a trust, retirement account, and taxable account faced concentration risk and potential tax challenges stemming from a small number of stock positions. A coordinated team reviewed the trust structure and investment strategy to identify planning opportunities aligned with the family’s objectives and constraints.

Multigenerational family
Challenge

The family’s assets had been invested in a limited number of stocks for many years without an active portfolio management strategy. The concentration created potential tax and risk-management concerns, particularly within an irrevocable trust holding assets with a low cost basis. The family wanted guidance on how to address concentration risk while considering trust provisions, tax implications, and long-term estate planning objectives.

At-a-glance

Client
Multi-generational family led by an elderly parent
By the numbers
~ $11 million across a trust, retirement account, and taxable assets
Constraints

Concentrated stock positions, low-cost basis, trust restrictions, capital gains exposure

The plan

Trust review, portfolio diversification strategies, and tax-aware investment planning

Approach

Our team reviewed the family’s trust documents, investment holdings, and tax considerations to develop a coordinated strategy.

Trust Review 
Conducted a detailed analysis of the trust structure and identified opportunities to align the investment strategy with the trust’s existing provisions, helping avoid potentially costly modifications.

Tax-Aware Diversification 
Evaluated ways to reduce concentrated stock exposure over time while considering potential tax consequences.

Loss Harvesting 
Identified available opportunities to realize investment losses that could help offset future gains where applicable.

Alternative Portfolio Strategies 
Assessed specialized approaches designed to manage single-stock concentration risk and support broader portfolio diversification.

Fixed Income Planning 
Established a municipal bond ladder in the family’s taxable accounts to address income and tax considerations based on their circumstances.

Outcome

The family gained greater clarity around the trust’s provisions, investment options, and potential tax implications. By coordinating estate, tax, trust, and investment planning efforts, they were able to move forward with a more structured approach to managing concentrated assets while remaining mindful of their long-term objectives.

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This case study is for illustrative purposes only and does not represent the experience of all clients. Client experiences and outcomes will vary based on individual circumstances.