Few significant asset bases are created in a short period of time. The vast majority of UHNW investors create and amass their wealth over a period of years that is marked by trial and error, and long hours of work.  An investor’s heirs might not have an appreciation for the effort that was required to elevate the investor into the upper strata of high net worth individuals.

Banc Star Financial’s UHNW advisors include structures in every wealth management plan to ensure that an investor’s legacy endures for multiple generations. An essential element of those structures is an educational component that imparts the importance of financial responsibility to an investor’s children and heirs. No one strategy is ideal for this purpose, and our advisors tailor their strategies to match the family dynamics that each individual UHNW investor presents.

Those strategies might include plans, for example, to give heirs regular allowances with strict instructions on budgeting and use of funds. Wealthy investors have become political targets as a result of a misguided perception of profligacy. We assist UHNW investors to instill a high degree of social responsibility among family members and heirs in order to address these criticisms.

After all investment needs and strategies are accounted for, UHNW investors can find themselves with surplus assets that are not being put to their most productive use. In a corporate environment, a chief financial officer would be charged with marshalling those surplus assets. Banc Star Financial’s wealth advisors adopt analogous strategies for our UHNW clients.

A family environment offers additional opportunities that are not available at a corporate level. Excess assets, for example, can be gifted to lower-income family members. This is an effective strategy to manage and control capital gains, which can be transferred along with an appreciated asset and handled at another family member’s lower tax rate.

Surplus assets are also an effective source of insurance payments for long-term health care and life insurance policies that offer tax exempt growth. In all cases, the use and transfer of surplus assets can present unanticipated tax consequences. Our UHNW team includes tax specialists that review and analyze all asset allocations and transactions to avoid adverse tax effects.