Personal financial services

Managing your wealth

In today’s complex world marked by interdependent markets, global interests, and changing tax requirements, it can be difficult to have confidence and peace of mind when it comes to your financial life. PwC’s Personal Financial Services practice understands this and the unique challenges you face in managing your wealth and planning for the future.

The professionals in our practice offer the judgment, experience and capability required to help you achieve your goals now and for future generations. In addition, we team across the firm to provide a robust portfolio of private wealth services to better serve the sophisticated needs of high net worth individuals and families.

Services

Income tax planning and compliance

Today’s tax environment requires a tactical approach and a range of strategies so that you are well positioned for tax policy changes.

  • Tax Returns
  • US and international reporting
  • Tax payments
  • IRS communication
  • Interface with advisors

Investment planning

Your investment strategy should keep you on an even keel while providing you the flexibility you need to capitalize on new opportunities.

  • Tax efficient investments
  • Reporting and disclosures
  • Structure of US and non-US holdings and asset allocation
  • Selection of investment holding vehicle
  • Independent 3rd party sounding board

Estate, trust and gift planning and compliance

Without proper planning, estate and inheritance taxes can significantly impact the wealth available for future generations. Plans should be reviewed routinely to address changes in tax laws.

  • Assess and coordinate estate documentation, arrangements and matters
  • Tax reporting and disclosures
  • Suggesting gross estate and global tax exposure
  • Consulting regarding non-US local jurisdiction laws and customs
  • Lifetime giving to family and charities
  • Effective use of trusts and other entities

Philanthropy

An ideal philanthropic giving strategy achieves the family's goals while being tax efficient.

  • Analyzing tax efficiency of current and proposed giving
  • Utilizing charitable trusts and foundations in wealth planning
  • Time horizon for giving
  • Coordinating philanthropic goals and estate planning
  • Facilitating financial and social responsibility

Insurance and risk management

Protecting your family’s well-being and assets from various risks involves obtaining appropriate insurance coverage and making strategic choices about forms of asset ownership.

  • Independent and objective assessment of life insurance coverage
  • Policy comparisons
  • Insurance for liability and investment purposes
  • Analyzing assets and beneficial ownership structures

Succession planning

Succession planning plays a critical role in the longevity of your family business. Communicating with family members and other key stakeholders about your plan is a critical ingredient in your business lasting beyond a leadership transition.

  • Guidance in the process of developing a succession plan and process
  • Tax considerations
  • Transitioning the business: exit strategies, IPOs, 3rd party sale

Family Offices

The administrative and managerial needs of high-net-worth families can be extensive and a family office can help meet those needs.

  • Structure and creation (single-family offices versus multiple-family offices)
  • Ongoing operations
  • Family office regulation
  • Tax considerations

Lifestyle (unique) investments

Ownership of yachts, airplanes, classic automobiles and art brings unique tax issues. Tax efficient ownership of these types of assets should be considered.

  • Facilitate assessment of assets
  • Support planning for acquisitions and/or dispositions
  • Choice of entity/jurisdictionVAT compliance and planning

Background

For many years, the CEO of an information technology company kept most of his personal wealth concentrated in the company. When he was ready to liquidate the position, he worked closely with his financial advisor, attorneys, and PwC team to implement a comprehensive estate plan.

The extensive, multi-year plan would gradually diversify his investments and distribute assets among his children. Working together, his advisors set up several different entities, including LLCs, LLPs, and at least a dozen different trusts. The plan covered three generations of the family; each family member's investment vehicles were tailored to his or her individual needs and risk tolerance.

For several years, the investment decisions were coordinated and driven by the lead investment advisor. During this time, this advisor not only amassed an unparalleled level of knowledge of the various financial instruments, account transactions and family dynamics but also built close relationships with individual family members.

Departure of key advisor leaves client at a crossroads

Then, the investment advisor decided to leave her firm. Suddenly, the family found itself without the guidance of an advisor on whom it had almost entirely relied for several years. The CEO wasn't sure what to do: should he stay with the investment advisor as she struck out on her own? Should he continue to retain her firm? Should he start fresh with a new investment management team? Because the diversification process was designed to achieve certain investment returns in each of the different entities, these decisions were critical to realizing the family's long-term objectives.

PwC provides guidance for transition

Having worked closely with a PwC partner for several years, the CEO turned to him for advice. The partner shared with the CEO what he'd seen others do in similar situations, which strategies he had seen work, and which backfired. The role that PwC was asked to play in the process was positive affirmation of the strength of the relationship we had developed with the CEO as well of the value we are able to provide our clients as a holistic trusted business advisor.

PwC helped the CEO understand the options available to him and suggested a new approach to the investment plan that would allow the CEO to retain relationships with both the investment bank and the departing advisor while still addressing his personal and professional concerns. During the transition period, the PwC team stepped in to study the portfolios and make sure that scheduled investment and transfers would continue to be made.

Ultimately, PwC provided the CEO with objective suggestions for managing the transition, maintaining relationships, and protecting his interests. As a result, the CEO was able to continue his investment plan with minimal interruption despite the departure of a critical member of the investment team. The process exemplified how we assist clients in navigating a wide variety of issues and demonstrates the perspective we can offer based on our experience working exclusively with high-net worth individuals and families.