Asset Transition

Asset Transition

As a holistic wealth management firm, Cabot is positioned to help clients with more than just their investments. We forge deep relationships with our clients and are equipped to help them with estate planning and tax minimization strategies. Here’s an example of how we helped a new client work through some of the challenges she faced when her husband passed away.

Client Situation:

  • 75 years old, widowed with a $6 million estate

Issues to solve:

  • Estate Plan never adjusted for drop in value of estate due to overexposure to an aggressive, thinly traded stock
  • Trusts were not fully funded (some assets were not titled)
  • Kids from previous marriage expected immediate benefit from dad’s estate
  • Settlement of the estate had been dragging on for 9 months
  • Client was grieving over the death of her husband and needed help

How Cabot helped:

  • Stepped in to become the primary contact with the client’s attorney, thereby helping to speed up the estate settlement process.
  • Developed a sound asset allocation plan for the Trust accounts to insure that the client was not open to any fiduciary liability.
  • Arranged for the “life settlement” of an insurance policy that the client owned in Trust that she no longer needed.
  • Provided a tax projection to “smooth out” the tax impact of divesting from some positions the client owned with low cost basis.
  • Reviewed all the legal work done by the client’s attorney to insure its accuracy.
  • Met with the children of the client’s deceased husband to explain how their father crafted his estate plan and why that structure makes sense.