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GREYCOURT
WHITE PAPERS
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White Papers
Home : White Papers : [48-30], [29-20], [19-10], [9-1]
White Paper No. 19 Concentrated Security Positions: Four Commonsense
Principles
Many wealthy families hold all or most of their wealth in one highly appreciated security. Sometimes that stock represents a control position in a family company, but more often the holding has
resulted from a sale of the family company for stock in a public company. If the sale occurred just prior to a bull market, the family may believe that owning one concentrated security is an excellent way to create
significant wealth. This was certainly the case with many families who sold their companies in stock deals during the 1980s and 1990s. Unfortunately, periods like those two decades come along far less than once in a
lifetime. The purpose of this white paper is to suggest a commonsense approach to dealing with large, concentrated stock positions, having in mind that there is a difference between a bull market and a sound
investment strategy.
White Paper No. 17 Taming Your Trust
When families consider the prospect of having to
establish appropriate provisions in trust instruments for spouses, children or future generations, they naturally approach the matter with trepidation. There is, first of all, the problem of attempting today to
design provisions that must work well many years, perhaps many decades, into the future. There is the further problem of dealing with intra-family emotions and stresses that tend to interfere with otherwise good
judgment. Finally, there is a natural tendency to be intimidated by the legal and tax complexity that appears to surround the arcane world of trusts.
White Paper No. 16 - Family Investment Partnerships
Many wealthy families are
familiar with family limited partnerships used to discount the value of intra-family gifts. But limited partnerships can also be used as investment vehicles, and this strategy offers many advantages. This white
paper discusses family investment partnerships, which represent a kind of private, family mutual fund for family members and other family units such as trusts or foundations.
White Paper No. 15 Total Return Trusts
From the time the concept of the trust was
first developed in the late Middle Ages until about the 1950s, trust assets tended to produce far more income than capital appreciation. The long-term result was typically that early income beneficiaries fared well,
while later income beneficiaries and principal beneficiaries fared poorly. (The decline of the English aristocracy was prominently fueled by this quiet phenomenon.) All that began to change half a century ago, and
by the end of the 20th century many sensibly invested trusts were yielding well under 2%. Today, therefore, the problem has reversed itself. Sensibly invested trusts that is, those with predominantly
equity-oriented portfolios tend to appreciate handsomely over time, but they produce little in the way of current yield in our low-dividend, low-interest-rate environment.
White Paper No. 13 Recent Events: The Long-Term Investment Implications
Although
the terrible events of September 11 are still fresh in our minds, it is not too soon to consider what the implications of those events and, indeed, the stock market meltdown that has occurred over the past
eighteen months might be.
White Paper No. 12 Conflicts of Interest: Do They Matter?
Private investors today
have more choices than ever before. The explosive growth in private wealth in the last decade has caught the attention of every major bank, brokerage firm and money management firm in the industry, and the result
has been an equally explosive growth in investment products and investment advisors. Although the broad menu of choices is ultimately a desirable outcome, the challenge facing investors is how to distill the
available information and create a logical, thoughtful investment program that is ideally suited to their needs.
White Paper No. 11 Affinity Groups: Resources for Wealthy Families
Clients often ask us if
we can recommend resources for wealthy families concerned about establishing family offices, investment strategies, philanthropy and similar issues. While there are innumerable organizations offering assistance in
very specific areas intergenerational issues or family communications, for example the purpose of this white paper is to identify several of the affinity groups that serve as broad resources for wealthy families.
White Paper No. 10 Establishing a Family Office: A Few Basics
Many families who have
experienced a significant liquidity event will consider setting up a family office. The purpose of this white paper is to discuss the reasons families consider establishing an office, to describe the typical duties
of such offices and to suggest a basic framework for designing and setting up a successful family office.
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