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Family Office Solves Tax, Insurance and Cash Flow Needs for Newly Single Client

01.01.16

Situation

A high net wealth individual ended a long-term marriage and needed our assistance in managing her cash flow and reviewing her tax situation and money management needs. She also needed assistance with the documentation needed to move her marital dissolution forward. She also felt that a former business manager had failed to correctly deposit royalty payments, which may have had a direct effect on her cash flow.

How We Helped

BPM set up a family office for her and took on managing her day-to-day finances. We set up a weekly cash flow analysis along with a summary of paid bills, plus we generate a monthly personal financial statement which we review with the client. We also reviewed her insurance coverage and introduced her to a broker that works with high net wealth individuals. We audited the royalty stream to get a full understanding of projected royalties and the future cash stream. We reviewed her previously filed income tax returns and set up quarterly meetings with the client to review tax planning opportunities. Finally, we introduced her to a new financial manager to advise on her financial planning and money management needs.

Results

BPM reduced the client’s anxiety of her cash flow situation. We saved $25,000 in the first year on her insurance policy but increased the coverage to meet her risk needs. Her monthly bills are paid on a timely basis and she is more aware of what her spending rate is with the weekly cash flow projection and monthly financial statements. We also instituted gifts to her children that reduced her total estate, which will save her considerable future taxes. Finally, she has increased her liquid assets with her money manager to meet her long tern cash needs while maintaining her lifestyle.