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the evolution of financial intelligence
P
100
The 100 MosT
PoWerful PeoPle
in finance
26
worth.com
volume 22
|
edition 05
Los Angeles
Leading Wealth Advisor
Whittier Trust
Judith A. Gordon, JD, CTFA, Senior Vice President; James A. Jeffs, MBA, Chief Investment
Officer; John T. Kelly, JD, LLM, Vice President; Caleb Silsby, CFA®, CFP®, Senior Portfolio
Manager; Peter J. Zarifes, MBA, Executive Vice President
Every day is a gift. It’s just—does it
have to be a pair of socks?
By Whittier Trust
Tony Soprano liked to use proverbs
to illuminate his responses to the big
questions in life. Now, following the
sudden death of the actor who portrayed him, the “big questions” being
asked have to do with the estate of the
late James Gandolfini.
Specifically, some media reports
are speculating about alleged enormous estate taxes due, confusing
percentage gifts, and an alleged
absence of trusts for his heirs (including a two-year old daughter from a
second marriage).
If true, those allegations add up
to a cautionary reminder to us all to
thoughtfully consider and complete
the details of our estate plans—while
we can.
We may be inclined to resist estate
planning, perhaps not wishing to
consider our own mortality. Often, it
is only when a partner or friend dies
suddenly (as did Mr. Gandolfini)
that we are finally spurred to action.
Opportunities are lost by waiting.
So, resist the temptation to procrastinate. Prepare (and periodically revisit)
your estate plan, especially when
blended/second families and multiple
asset classes are involved. Affirmatively
addressing potential issues, and periodically reviewing your choices are
actions that go a long way to avoiding
later unhappiness and confusion, if
not outright war, amongst your heirs.
Among the issues to consider, raised
by those rumors about Gandolfini’s
estate includee:
Privacy. Is it important that the
terms of your estate plan remain
private? The fact that there is so
much speculation about Gandolfini’s
estate is due at least in part to the
composition of his estate plan. A
beneficial aspect of leaving assets to
heirs through a pour-over will and
trust(s), is that the provisions of these
instruments generally are more easily
shielded from public scrutiny.
Second (or Third or Fourth) Marriages and Minor Children. How
will you provide for both adult and
minor children of a current or previous marriage(s)? Will they be treated
equally or differently? What types of
assets will they inherit? These are all
considerations that should be directly
addressed by the estate plan.
Trustee and Executor. Whom have
you appointed to manage your estate?
A surviving spouse, family member
or friend may best know your family
and your intentions. Nonetheless, the
fiduciary responsibilities imposed on
individuals appointed to these roles,
coupled with the increasing duties
demanded of a trustee or executor
(accounting for the assets, investing
them, making distributions, filing tax
returns, paying expenses, etc.), may
make these appointments burdensome for an individual and potentially
fraught with liability. A corporate
trustee or executor with specialized
knowledge and staff to handle complex trust and estate matters should
be at least one option you consider.
Real Estate and Estate Tax. Does
the estate primarily consist of real
estate? Is it held in a foreign country
(such as James Gandolfini’s Italian home)? Should the real estate
remain in the family or be liquidated? If the estate’s assets exceed
the $5.25 million estate tax exemption amount (as indexed), are there
sufficient liquid assets available to
pay any estate tax due?
Specific Bequests. Are the assets
gifted appropriate to the age and
financial wherewithal of your beneficiaries? In Gandolfini’s case,
his young adult son may be given
the option to purchase his New
York co-op at fair market value,
yet no provisions apparently were
made for the yearly maintenance,
property taxes and other expenses
relating to the costly upkeep of that
asset. You should consider whether
specific bequests make sense given
the age and financial capabilities of
the beneficiary.
Overall, the central object lesson
from Gandolfini’s estate is to proactively address estate planning during
your lifetime, instead of leaving matters unresolved. To again quote Tony
Soprano, “A wrong decision is better
than indecision.”
live
“The central object lesson from James
Gandolfini’s estate is to proactively address
estate planning during your lifetime, instead
of leaving matters unresolved.”
How to reach Whittier Trust
grow
You may reach our team through the email
listed below or at 800.971.3660. We look
forward to speaking with you.
make
—Whittier Trust
W hittie r Trust
Standing, left to right:
Peter J. Zarifes, Judith A.
Gordon, James A. Jeffs;
sitting, left to right:
John T. Kelly, Caleb Silsby
About Whittier Trust Company
illustration b y kevin sprouls
“Your wealth. What does it mean to you?” The answer is personal and unique to every individual. From
its roots as a family office in the 1930s to the present day, Whittier Trust has been helping highly affluent
individuals and families accomplish what is important to them. Providing expert guidance, superior
investment performance and highly personalized service continues to be the firm’s primary objectives.
Within the highly personalized structure of a family office, the firm provides unrivaled investment and
wealth management advice, with expertise in financial markets, closely held businesses, real estate,
fiduciary and philanthropic services. Whittier Trust is the largest independent firm of its kind in the
Western U.S. and focuses on consistently protecting and growing wealth—one client at a time—from one
generation to the next.
Minimum Asset Requirement
$10 million
Assets Under Management
$8.9 billion
Minimum Fee for Initial Meeting:
None required
Primary Custodian for Investor Assets
Bank of New York
Largest Client Net Worth
$1 billion
Compensation Method
Asset-based, fixed and hourly fees (investment services); hourly fee (project services)
Financial Services Experience
Gordon, 31 years; Jeffs, 33 years;
Kelly, 8 years; Silsby, 6 years;
Zarifes, 25 years
Professional Services Provided
Investment and wealth management
Whittier Trust
Email
[email protected]
1600 Huntington Drive, South Pasadena, CA 91030
Website
www.whittiertrust.com
800.971.3660
worth.com
OCTO B ER - N O V EM B ER 2 0 1 3
141
W
Judith A. Gordon, JD, CTFA
Senior Vice President
James A. Jeffs, MBA
Chief Investment Officer
John T. Kelly, JD, LLM
Vice President
Caleb Silsby, CFA®, CFP®
Senior Portfolio Manager
Peter J. Zarifes, MBA
Executive Vice President
Whittier Trust
1600 Huntington Drive
South Pasadena, CA 91030
Tel. 800.971.3660
[email protected]
www.whittiertrust.com
REPRINTED FROM
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the evolution of financial intelligence
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