1. Serving The Complex Needs of Ultra-Affluent Families and Family Offices
Doug Regan, EVP
President The Wealth Management Group
Nancy Felton-Elkins, SVP
Director of Fiduciary Services
The Wealth Management Group

3. What Will We Do Today? What is The Wealth Management Group?
How are we serving the Ultra High-Net-Worth client?
What may be changing?

4. The Wealth Management Group
Founded in 1982
285 highly trained professionals on staff
Our relationship managers have 18 years average industry experience
Wealth Management staff in Chicago, New York, Los Angeles and London
$194 billion in assets under administration
$30 billion in assets under management
64% of Wealth Management Group clients utilize a single family office which represent 85% of AUA
We serve 22% of the Forbes 400 families
Average client relationship size is $475 million
Over 35 client relationships with $1 billion or more in Assets under Administration
410 family relationships, with clients located in 48 states and 15 countries
Services offered:
Global Asset Servicing and Reporting
Investment Management
Investment Consulting
Performance Measurement and Risk Assessment
Fiduciary
Private Banking

5. Education Family Financial Forum Inspiring Human Capital
For Families and their Family Office Executives
Pre-conference for Family Office Executives
Inspiring Human Capital
Exclusively for Family Members
Learning and networking
Defining values and passing them on to future generations
Global Wealth Alliance
Education for our largest clients’ Family Office Executives
Client Advisory Board
For the heads of Family Offices to network with each other and to aid in improving the overall quality of services we provide to our mutual clients ― the Family
Financial Executives Group
Networking Group for Family Office Financial Executives

6. Wealth Passport
With a quarter-century of experience working with Family Offices, Northern Trust understands their complex structures and can deliver comprehensive, customized solutions.
Wealth Passport’s secure environment empowers wealth owners and family offices to conduct business more efficiently, make strategic decisions and focus less time on administrative functions.

7. Acquirors vs. Inheritors
Acquired
Transition in socio-economic class
Identity is established partially or wholly prior to acquiring the wealth
Acquiror’s Quandary
Incorporating wealth into personal identity
How much do I assimilate?
Inherited
Maintenance of socio-economic class
Identity is tied up with wealth
Inheritor’s Quandary
Growing an identity out of a wealth environment

8. What is Making My Phone Ring?
What shall I tell my children about our wealth? How can I educate them about wealth? How can I stop them from feeling entitled to it?
Is the client an acquiror or an inheritor?
Acquiror: Concern that the next generation will have too much money
Inheritor: Concern that the next generation will not have enough money-needs to work; entitlement

9. What is Making My Phone Ring?
Why would I NOT want Dynasty Trusts?
Family Offices becoming investment companies or multifamily offices
Family Offices becoming Private Trust Companies
Aggressive tax strategies
Investment performance requests for complex portfolios to review managers and consultants
Partnerships or LLC’s to pool assets in smaller trusts

10. What is Making My Phone Ring?
Can I put my plane, yacht, ranch, art, etc. in a trust?
Estates with staffs
The ocean is coming over my seawall.
Art
Can I put the museum in a trust?
Jewelry
Timber
Natural gas wells
Yachts with crews
This is the monthly for only ONE boat in Monaco?
Airplanes
Is this the gas bill?

11. What is Making My Phone Ring?
How many trees did you kill to produce this report?
Challenges of Information
Wealth Passport encourages customization and aggregation
Some folks want it simple
Electronic reporting, CD’s, or paper?
Fear of computers
Partnership accounting
“I’ve been elected. What should I do?”
Blind trusts

12. Where In the World Do I Go?
What states don’t have state “death” taxes?
Should I avoid moving to a Community Property state?
What does de-coupling mean? Will I pay more death taxes in the state I call home?
What states don’t have state taxes?
Where can I have a Dynasty Trust with no Rule Against Perpetuities?
Should I have an Asset Protection Trust in Delaware? In Guernsey?
I know some states have better laws for Special Needs Trusts. Which ones?
If Northern Trust in Chicago is co-trustee with my attorney in California, will my Irrevocable Trust be taxed in California if I am not a California resident?
Where is it best to establish a Private Trust Company (PTC)?
We have a PTC but want Northern Trust for:
Asset Servicing/Information Delivery / Global Assets
Co-Trustee with powers limited to making discretionary distributions
Consultant on investments, discretionary decisions, being a trustee
Can I reform this trust in Illinois? Ohio? California? Delaware?
Can I repatriate my Bahamian trust and what will it cost in taxes?

13. The Yale Syndrome
Asset Allocation Challenges with Alternative Asset Classes

14. The Yale Syndrome
Percentage recommendations of consultants and investment committees range from 25-80%
Passive versus Active Investments
Knowing the Trust and family objectives, goals for advisors, and risk tolerance: family meetings
Need for pooling assets, LLC’s, layered entities, schematics
Flight to safety in turbulent markets

15. The Yale Syndrome
Lack of sophistication, need for education

16. What In the World Are You Doing?
Facilitating family meetings
Working with multiple attorneys from several firms
Reforming, remodeling or decanting trusts
Clients willing to pay for strong attorneys and accountants
Engagement letters
Pooling assets
Filing tax returns for the underlying interests
Seeking discounts for pooled asset gifting

17. What In the World Are You Doing?
Retainers or pay as you go and expenses
Bias to big law firms with global capabilities
Global capabilities for international legal, trust and estate planning
You wear many hats

18. What May Be Changing? EVERYTHING! Investment security The tax law
Strategies to unbundle fees
New President and Congress in 2009
Global Issues
AML for every country
Next generation Issues
Succession planning
Philanthropy

19. Thank You
Serving The Complex Needs of Ultra-Affluent Families and Family Offices