Case Study: How We Help Families Plan for Multigenerational Wealth

By Kendra Reilly, CFP®, CIMA®, CEPA®

Our client Drew would be the first to tell you that life doesn’t always go according to plan. We had worked with Drew’s father, Paul, for decades, and one day Paul asked if we’d be willing to meet with Drew. At that time, Drew was becoming quite successful with his partner in their business. His father thought he could use some advice around the basics. That initial meeting with Drew has grown and prospered into a 20-plus-year relationship. 

Meet Drew

Drew understands his strengths and knows when he can benefit from seeking professional advice. When we first met with Drew and his wife, Claire, we reviewed their retirement benefits with their company, analyzed their cash flow, evaluated their estate plan, and how tax-efficient they were. We helped Drew and Claire create a financial safety net—making sure they could cash flow their lifestyle, giving advice on the best strategies around many areas of private wealth management. This allowed them to have confidence about their financial future and sleep easier at night.  

Drew’s Challenges

Drew’s wife passed away suddenly when they were in their early 50s. Claire had overseen the everyday financial management; she was the one who paid all the bills and kept the financial part of the family in good working order. After Claire’s passing, those responsibilities became Drew’s. He found himself facing a situation where bills weren’t getting paid and he was unmotivated to look at his investments. After a few months of reflection, Drew was ready to build a sustaining wealth management structure that could support him and his family.

Drew, a successful business owner, had helped his company through a few major transactions, which resulted in he and Claire building significant wealth for their family. In the months following Claire’s passing, Drew decided it was time to leave his business and move on to the next phase of life. After careful planning and extensive conversations about his spending and a variety of different scenarios modeled, we showed Drew that he could continue providing for his family and retire comfortably whenever he wanted.

Our planning process helped Drew not only create wealth for himself but significant family wealth as well. We discovered during our normal review meetings that he was going to leave a legacy that created significant federal estate taxes. Utilizing our Capacity for Living and Capacity for Giving Solution, we identified that not only could he increase his current spending, he could also increase gifting to his children during his lifetime. Additionally, our strategic estate planning and efficient life insurance solutions eliminated a substantial portion of federal estate taxes he would owe and significantly increased his legacy. At this point Drew wanted a family meeting with his children, John and Emily.

In planning for this family meeting, Drew’s primary goal was to convey to John and Emily that the wealth he created was family wealth, not just his own. He wanted to empower his children to dream big when it came to creating their future. He would be there to support them and help financially. His son, John, is passionate about fishing and started a fishing business; Drew told John he would invest to help buy more boats to grow his fleet. His daughter, Emily, is very socially conscious and concerned about the environment; Drew wanted her to know she could follow her passion instead of focusing on earning a large salary. 

How We Addressed These Challenges

The good news for Drew and his family is that through our Clarity, Understanding, and Action Solution, they were able to move through the family tragedy and begin to lay the groundwork for a bigger future with confidence.

Our first goal was getting Drew and his financial house in order after his wife’s passing. We did this by educating him on his assets and making sure everything got paid on time. He began using our Interchange client portal to organize and monitor his wealth.

Next, we helped Drew reduce his taxes by setting up a donor-advised fund in his late wife’s name—this saved him taxes and was a great way to honor his wife. We also helped create an efficient estate plan by working with his attorney and CPA to deliver a coordinated approach. This saved significant estate taxes and also increased his legacy.

While grieving, Drew decided to retire early to spend more time doing what he loved: sailing. (He completed a solo sail from Florida to the Caribbean, from Maine to Florida, and his next goal is to sail across the Atlantic.) To achieve this early retirement, we worked with Drew on his cash flow, making sure his “spending bucket” was sufficient, as well as a plan to pass his estate to his children.

Just as we worked with Drew multi-generationally when his father referred him to our firm, we also now work with Drew and his children. Together, we have explained to them the importance of “family wealth” and educated them on what they could potentially inherit. Just like we worked with Drew’s parents, we are working with Drew’s children and helping them through unpredictable life stages.

Today Drew is currently enjoying his next chapter, sailing with his girlfriend and working with his children—developing a shared family mission as he prepares them for the wealth they will one day inherit. 

We Can Help You Too

Our approach is thoughtful and holistic. Who knows how your life will unfold? Now is the time for a thorough review of where you are and where you want to be. Email us at team@interchangecp.com or call our office at 412-307-4230 to schedule an introductory appointment. 

About Kendra

Kendra Kasznel Reilly is the senior director of relationship management at Interchange Capital Partners, an independent registered investment advisory firm providing collaborative and comprehensive planning and disciplined wealth management. Kendra has 10 years of industry experience and spends her days building relationships with our clients and providing advice and strategy around the key areas of private wealth management; goal based investing, wealth expansion, wealth transition, protection planning, and charitable giving. She is known for her holistic approach that allows her to spot opportunities, identify gaps, and make recommendations to enhance our clients’ overall plan. Kendra is passionate about making sure our clients are on track to achieve financial security as she acts as their partner for all things financial. 

Kendra graduated Cum Laude from the University of Pittsburgh with a double major in communications and English writing. She completed the Executive Certificate in Financial Planning program through Duquesne University and successfully earned her CERTIFIED FINANCIAL PLANNER™ designation and Certified Investment Management Analyst® (CIMA®) credential. In her free time, Kendra enjoys traveling, cooking with her husband, and baking and decorating cakes. You can often find her hiking with her dogs or spending time with her family and friends. She has been involved with Big Brothers Big Sisters of America (BBBS) for many years and is a member of the Young Professionals Advisory Committee for the Pittsburgh Foundation. To learn more about Kendra, connect with her on LinkedIn.

Interchange Capital Partners, LLC, (“INTERCHANGE CAPITAL PARTNERS”) a registered investment adviser with the Securities and Exchange Commission providing investment advisory and financial planning services. Any reference to the terms “registered investment adviser” or “registered” does not imply that INTERCHANGE CAPITAL PARTNERS or any person associated with INTERCHANGE CAPITAL PARTNERS has achieved a certain level of skill or training. A copy of INTERCHANGE CAPITAL PARTNERS’s current written disclosure (ADV 2A Firm Brochure) discussing our advisory services and fees is available for your review upon request. INTERCHANGE CAPITAL PARTNERS, in addition to providing investment advisory and financial planning services, provides business consulting services. In connection with its business consulting services, INTERCHANGE CAPITAL PARTNERS does not provide tax or legal advice.

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