The Benedict-McLoughlin Group at Morgan Stanley

Problem: Over many years, the client was busy managing his business and had engaged multiple Financial Advisors from different firms to help manage his investment assets. Given the enormity of selling his interest in a privately-owned business, he was seeking an alternative to the splintered and inefficient current financial strategy.

Our solution: We established a relationship with him and his family and presented a logical and thoughtful transition plan. This process enabled us to consolidate investment accounts, correct lending and insurance strategy inefficiencies and review the overall estate planning strategy. As a result, we were able to diversify existing assets and essentially 'de-risk' the client's investment strategy, simplify and enhance his financial management situation and lower his costs.

Problem: Our client had a low-cost, concentrated single-stock holding and was worried about downside risk exposure as it represented a large percentage of their net worth and didn't want to take a large capital gain.

Our solution: Chris worked with our client to establish a game plan for maintaining appreciation potential while reducing the downside risk through various hedging and collaring techniques. Clients often appreciate this strategy when initiated in small increments and that was our approach here. They gained a level of confidence, and we were able to help plan for additional hedging transactions at an opportunistic time. Completion portfolios and exchange funds were also considered.

Problem: Deal time was fast approaching, and the client needed help with the transition; from finding the right professionals for merger & acquisition representation to considering options for existing buy/sell insurance policies and splitting/transitioning the company 401(k) and profit-sharing plans.

Our solution: We first referred two investment banks and organized a comprehensive proposal meeting that addressed all stated client priorities. Together with our colleagues from various specialty groups at Morgan Stanley (Family Office Resources, Trust & Estate Planning, Alternative Investments, Insurance Services and Private Banking), we reviewed the pros and cons of the various solutions with the client and their other advisors and implemented an efficient and holistic solution.

Problem: The Benedict-McLoughlin Group had an ongoing relationship with a mid-size business owner, his foundation, and one of his trusted advisors. The business owner's wealth consisted mostly of his privately held company stock. Both the client and his beneficiaries needed wealth transfer planning as well as asset allocation strategies.

Our solution: Utilizing our comprehensive Family Office Resources group, we facilitated a collaboration between our Wealth/Estate Planning team as well as our Trust Services group. Together with the business owner and his beneficiaries, we were able to craft a solution that enabled generational wealth transfer in a tax efficient manner. Additionally, this enabled Chris to set up unique investment strategies appropriate for both the grantors and beneficiaries.

Importantly, because we were able to present the solution to the client and his advisor via trust illustrations, we were able to save them both time and money.

These case studies are hypothetical and presented for illustrative purposes only. The facts involved do not represent the actual experience of any specific client. Each client's situation is different and a client's experience and any recommendations made to a client will vary depending on the specific facts and circumstances involved. Past performance is no guarantee of future results. These strategies do not guarantee a profit or protect against loss and may not be appropriate for all investors. crc# 5722962