CWP Management, Inc., is a busy family office based in Chicago, Illinois. They look after the financial affairs of 10 households and 31 family members across 3 generations, but an ageing IT infrastructure was weighing down on its president’s time and budget. When disaster struck and their data center was compromised, CWP used the opport...
Sidney Reso, president of Exxon Company International, was kidnapped from the driveway of his home and ultimately murdered in 1992. Edward Lampert, one of the nation’s wealthiest investors, was kidnapped in the parking garage of his offices in 2003 and was released after promising $5 million to his kidnappers. These are only a few examp...
The volume of information in businesses is doubling every two years, creating significant challenges for businesses of all types and sizes, including family offices. Besides the cost of storage, the information in records and data can pose risks that may surface in audits and litigation. One way to successfully tame the rising tide, is to implement...
Knowing what Wealth Managers find crucially important when structuring insurance solutions for their clients can help you differentiate yourself amongst this highly influential group of trusted advisors. The insights in this article can help you strengthen your referral network and increase your pipeline of UHNW business.
Some data security disasters make news because they involve household names -- Target Stores, Sony Online Entertainment and Home Depot, among others. While other data breaches make headlines because they reveal embarrassing information -- e.g., Ashley Madison. But that does not mean that family run offices, which may be less well-k...
Estate planning and wealth management involve the founder’s goals, family and assets. Unresolved substance use disorders (SUDs) will undermine the best plans and intent in all three areas. However, trustees and attorneys frequently overlook clients engaging in addictive behavior because they are unaware of the symptoms of the disease, don&rsq...
The first in-depth exploration from our global family business survey, “women in leadership” shows that family businesses believe in the value of women in leadership overall, not only women family members.
Perhaps related to unsettled politics and radical groups in various countries, Kidnappings of foreign nationals worldwide have increased by more than 60% in the past five years.The risk of a kidnap and ransom (K&R) situation is a very real risk for some families, particularly those with high public visibility, who hold a position of power, or w...
The Internet has brought incomprehensible changes to our world over the last 20 years. Technology is so prevalent in our society that whether or not you personally shop online, use apps, or conduct web-based banking, you could find yourself a victim of a cyberattack. This issue of Abbot Downing Perspectives “Cyber (In)Security” addresse...
With great wealth, comes great responsibility, and given the complexity of risks faced by the high net worth individual, even greater due diligence is required to protect against financial loss and emotional distress.While many high net worth individuals assess and protect physical assets, often they overlook protecting against loss from liability ...
In his seminal guide to combat strategy, “The Art of War,” Chinese military general Sun Tzu wrote, “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” Great advice, except many companies tend to confuse tactics with strategy. They know strategy is important, but th...
Thinking about selling your business? Conventional wisdom in the investment banking community says you’d better do it soon — that the market will soften sooner rather than later. Corporate Finance experts have a different view — that businesses have 24–30 months to finalize any deals.While the sky’s not falling yet, it...
Families who have created wealth over time through real estate development and ownership have even greater opportunities, but very different challenges, when their focus shifts to preserving that wealth. In many instances, using appropriately trained professionals to guide in the process and electing to create a single family office, or retaining t...
The American Taxpayer Relief Act of 2012 reduced the top marginal estate and gift tax rate to 40 percent. In addition, the Act provides for a $5,000,000 per individual lifetime estate/gift tax exemption, adjusted for inflation, known as the “basic exclusion amount”. The 2015 basic exclusion amount is $5,430,000. This article explains ch...
Family-run enterprises make up a significant portion of businesses within the United States. Because it is clear that many of these business-owners will be looking to plan their exit from the companies they have established, it is important that planners prepare for their role in the succession planning process. We’ve compiled a list of ten s...