There are many reasons trust and estate planning attorneys who are not partnered with a multifamily office (MFO) might consider doing so. While sharing an affluent clientele and increased revenues is clearly advantageous, billable hours are only one aspect to consider. When properly nurtured, a relationship with an MFO is mutually beneficial for years to come – here are five reasons why:

There are many reasons Trust and Estate Planning attorneys who are not partnered with a multi-family office might consider doing so. While sharing an affluent clientele and increased revenues is clearly advantageous, billable hours are only one aspect to consider within a larger scope. When properly nurtured, a relationship with a multi-family office will be mutually beneficial for years to come. The size of the law firm retaining the attorney matters little—both small, specialized boutique practices as well as large firms can reap substantial benefits by affiliating themselves with a multi-family office. Here are five reasons why:

Every investment has risks.  Shareholder Activism, introduced in Part 1 here is no different.  However, as in most investments, its inherent risks can be isolated and controlled.  Below is the step-by-step process of an activism campaign along with the risk associated of each of the eight stages of development:

Shareholder activism has a history of creating positive change within companies.  S&P IQ’s research from 2013 and 2014 illustrate investing alongside Activist’s delivers returns that are significantly higher than the market’s returns.  However, there are still a number of risks—even when a high quality activist is at the helm—and results can vary greatly.

Captive insurance companies, self-insurers for businesses, provide owners with substantial tax advantages, the most attractive of which is an annual deduction of up to $2.2 million based on an actuarial assessment of your business.[1]  This effectively shifts business income from the top marginal tax rate of 39.6%, towards a more preferred dividend tax rate of 20%.  These cumulative savings can further benefit from the dividends-received deduction, which allows the captive to deduct 70% of the dividends that it receives from its stock portfolio investments.

We estimate less than 1% of the general population knows what to ask before considering investing in a company. MarketWatch paraphrased Warren Buffett, “Put your money in index funds and move on… Seriously, you’ll do better. That’s what I plan to do with my own money once I am gone.” In short, buy index funds. Ample evidence proves the vast majority of investors would be considerably better off following this advice. Without unique knowledge, active investing is simply a guessing game.

Oscar Wilde is famously credited for the phrase, “A cynic is a man who knows the price of everything but the value of nothing.”  While the-ultra-wealthy are generally clear on both price and value, money cannot buy everything—particularly if it’s squandered by heirs who have no idea what it means to keep it. 

The capital markets are reasonably efficient and more often than not the market values assets accurately. Something must change for the price of an asset to depreciate or appreciate. When it’s the latter, the investor must be able to predict change. Shareholder Activism has a history of creating positive change. This paper explores how changes initiated by Activist investors create value far in excess of general market returns. The statistics show activists do this with significantly less risk than other forms of investment. In this paper, we will define the risks inherent in each stage of the Shareholder Activism process and how investors might profit from each.

An instant is all it takes to destroy a person’s ability to make important decisions. A lifetime of hard work, financial planning and dedication can be eradicated. Illness, a chance accident or cognitive decline over time may impair decision-making—or limit it entirely. One stroke could curtail a person’s ability to communicate, move and live independently.

Whether a global conglomerate, or a successful local operation, distinct challenges face growing businesses—yet for business owners wishing to preserve multi-generational control within their family, they face a particularly unique set of circumstances.  Succession planning can be particularly challenging for any founder, yet multi-generational family businesses must overcome differences of opinion about management and/or succession of power, and disagreements over assets and favoritism.