A concentrated portfolio, with a business sale ahead

An entrepreneurial couple approaching a business transition, with a concentrated portfolio and no estate planning yet in place.

Key Takeaways

Plan before the transaction, not after

Most of the useful options expire at signing.

One pool, two jobs

Separating lifestyle capital from legacy capital is what makes both allocations honest.

Exemptions are use-it-or-lose-it

Both lifetime exemptions were put to work while the valuation still allowed it.

Read the full case study

Key facts and numbers.

Proven results across every engagement.

$50.0M

Total Net Worth

$30.0M

Business Value

$20.0M

Personal Investable Assets

15%

Target Private Equity Allocation

How Colony supported the situation.

Investments

Unwinding a concentrated position built over years, without triggering more tax than the plan could absorb.

Client Issues

Sizeable dividends had been invested into index funds and a handful of stocks that appreciated substantially, and the couple was concerned they were carrying too much risk.

Colony’s Solution

Colony re-set the mandate to balance growth with cash flow, collared two concentrated positions, straddled the transition across two tax years, harvested losses during volatility, and began building a private equity program targeting a 15% allocation.

Wealth Planning

Rebuilding the plan around a business with variable revenue and a spouse moving toward early retirement.

Client Issues

With variable revenues and a management transition underway, the couple needed to know how much to earmark for their own cash flow before committing anything to estate strategies.

Colony’s Solution

Iterative long-term simulations split $15.0M of lifestyle capital from $5.0M of legacy capital. That legacy portfolio and part of the company stock moved into Spousal Lifetime Access Trusts, each spouse the primary beneficiary of the other’s.

Read the full case study

What changed

The outcome.

$15.0M of lifestyle capital, separated from $5.0M of legacy

Long-term simulation split the two so each could be invested for the job it actually has.

Both lifetime exemptions put to work

The legacy portfolio and a portion of company stock moved into Spousal Lifetime Access Trusts.

A sale became an option rather than a scramble

Leadership transitioned successfully, opening the door to a transaction and further pre-sale planning.

Family Outcomes

More Case Studies.

Wealth PlanningInvestmentsFiduciaryFamily Office

A hundred-year plan, once the next generation is provided for

$21.0M

Generation Skipping Family Trust

InvestmentsWealth Planning

A concentrated portfolio, with a business sale ahead

$50.0M

Total Net Worth

FiduciaryWealth PlanningFamily Office

When the family trustee can no longer serve

$84.0M

Total Family Wealth

Important disclosures

This material is for informational purposes only and does not constitute investment, legal or tax advice, and should not be used as a substitute for the advice of a professional legal or tax advisor. It does not constitute an offer to sell, or a solicitation of an offer to buy, any interest in any investment vehicle. Targets, ranges and expectations set out here are approximations; actual results may differ. This information is limited in scope and is not intended as an exhaustive analysis. Colony Family Offices and its directors, officers, agents and employees are not permitted to render tax or legal advice; please consult your own tax and legal advisors before entering into or implementing any financial transaction. Any tax-related material here is subject to IRS Circular 230: any tax advice contained in this communication is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter. Colony Family Offices is a registered investment advisor; more information, including investment strategies and objectives, is in our Form ADV Part 2, available without charge on request. Client circumstances described are illustrative and individual results vary.

Let’s talk.

Our promise is to bring clarity to your financial framework, continuity to the relationship, and trust to every step forward.