Establishing a structured approach to charitable giving
In this case study, a multi-generational family needs a simple but holistic approach to their assets, and support for their philanthropy. We start with a family office.
The situation
A family generated a substantial portion of their wealth through the sale of a first-generation business in the transportation industry. The second generation, with young children of their own, successfully stewarded the proceeds as financial professionals in the private equity space. They also maintained a longstanding commitment to philanthropic initiatives, supported by a strong interest in charitable giving and social impact.
The client’s goals
- Develop a broader ‘family office’ style of relationship, taking a holistic view across all assets while planning and implementing the smooth transfer of wealth to the next generation.
- Simplify their investment portfolio and reduce reliance on personal relationships built over many years in the investment business.
- Set up a charitable foundation to align their existing philanthropic activities and family values.
Our approach
- Our Legal and Philanthropy teams helped the family to plan their charitable giving, making suggestions with regard to giving in a systematic and thoughtful way.
- Our Family Office teams in London and Jersey reviewed the family’s existing structures and made recommendations to enhance tax efficiency and meet their long-term needs.
- Our Investment Management team sourced and evaluated external investment managers, made recommendations on transitioning legacy private equity exposures, and sourced alternative investment options that would be appropriate for the family’s objectives and circumstances.
Outcomes
- We established four family trusts for which our Family Office team in London and Jersey act as fiduciaries and trustees.
- Our Investment Management team now provides oversight as gatekeeper for the family’s investment assets, amounting to approximately £60 million, carrying out quarterly manager performance reviews and negotiating all fees.
- On behalf of the eldest daughter, we established an ethically constrained portfolio directly invested in global equities, alongside an income-oriented mandate to meet UK expenditure requirements.
- Corient now generates sophisticated, expert reports for the client from multiple data sources, offering a holistic overview of their portfolios, showing their lifestyle assets – including art and property – and their investments against appropriate benchmarks.
- Our Law team worked closely with the client to set up a charitable foundation for lifetime funding, and to receive 10% of their wealth at death.
Disclosure: Case studies are provided for illustrative purposes. The scenarios described do not represent the experience of all clients. The examples provided represent a specific client’s circumstance and no assurance can be given that similar results will be achieved in the future. There are no guarantees of future results, success or performance. The case studies are not a client testimonial or endorsement of Corient’s services and it is not known if the client approves or does not approve of our services. The information provided in this case study should not be considered investment, tax, accounting or legal advice. Products and services may not be available in all jurisdictions or to all client types.
