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Investment Philosophy: Preserving a Legacy

Investment Philosophy - Preserving a LegacyBob and Maureen are both in their early eighties. They have been married 60 years and live in Massachusetts. They have five children and fifteen grandchildren. Bob accumulated significant financial assets while working as an executive in the high tech industry. In addition, the family owns a 90 acre farm, an industrial building and owns and operates a publishing company. Seventeen years ago they engaged Harbor Advisory to manage their investment portfolio.

After reviewing all aspects of Bob and Maureen's wealth, Senior Counselor Jack De Gan, suggested implementing a plan to preserve their family's financial legacy. The plan would consist of creating a better estate plan, establishing gifting programs and creating an educational trust for family members.

Bob and Maureen existing estate plan only incorporated simple wills. In order to avoid significant estate taxes, Harbor Advisory recommended Bob and Maureen implement a more comprehensive plan that included two pourover wills, two living trusts, two durable powers of attorney, two health care proxies, a real estate trust and an irrevocable life insurance trust.

Harbor Advisory also recommended establishing gifting programs for Bob and Maureen's children (under the annual exclusion gift rules) and an educational trust to provide college funding to the grandchildren. Gifting of less liquid family assets was coordinated using the lifetime exemption to transfer a farm, a publishing company and an industrial building allowing for ease of administration as well as less growth in the taxable estate.  Both of Harbor Advisory's Senior Counsel, Weld Butler and Jack De Gan, serve in various roles as trustee or co-trustee, on the educational trust that was established for Bob and Maureen grandchildren.

Today, Bob and Maureen's estate is in good order and would produce little if any estate tax upon death under the current law. With Harbor Advisory looking out for their financial well being, Bob and Maureen are enjoying visiting with their family and traveling.