In Part I of this article on dissolving family limited partnerships and limited liability companies (together LLPs), I outlined the general issues and considerations in liquidating the entity. Once youve evaluated the relevant pros and cons of continuing the FLP, its now time to consider the options available. These might include:
Keep Status Quo
Perhaps after a complete analysis weighing all relevant factors, youll conclude that the existing FLP structure is a reasonable balance of all client considerations.
Revise the Investment Strategies
It may be feasible through a more carefully crafted investment policy to reduce the unrealized appreciation inside the FLP, thereby reducing the benefits of a basis step-up on death. In such instances, the FLP may remain intact as is, and perhaps the only document change might be a revised investment policy statement. For example, if the FLP contains only a portion of the family investment wealth, which is likely, then perhaps the FLP asset can over time be shifted more towards income then growth or actively managed growth investments so that unrealized appreciation is limited.
Restate Governing Document to Eliminate Discounts
The FLP may still serve as a convenient investment vehicle. For example, there may be a large number of family members, family trusts and even other family entities that have all pooled their liquid assets in the FLP as a single investment vehicle. This use may still be relevant, but the discounts are a negative from a tax planning perspective. It might be a relatively simple step to eliminate discounts while retaining the structure intact. This may continue to afford investment management advantages and save the cost and complexity of restructuring all the existing investment accounts and relationships. If the governing document is amended to provide that any member can receive his pro-rata share of the entity underlying assets on 60 days advance written notice, it would seem implausible for the Internal Revenue Service to argue that discounts could apply. A very serious negative to this approach is that it would also eviscerate any asset protection benefits previously afforded by the use of the entity because a creditor could make a similar demand. If the family members arent reasonably concerned about liability protection, this might afford a reasonable, simple and easy to implement means of eliminating discounts while retaining some benefits of the FLP. What if the parent/partners want to eliminate the discount to maximize basis step-up but a child/partner is a physician worried about the loss of malpractice protection by this change? If some of the family members do have concerns about liability, malpractice or divorce, it may be feasible for them to contribute their FLP interests to an irrevocable trust in advance of this change to the governing documents. While they would lose the additional layer of protection the FLP level of planning might have afforded, the asset protection from the irrevocable trust might suffice, and this might afford the family overall a better planning result.
[Reuters] Morgan Stanley said on Monday it has agreed a deal to sell its Australian real estate unit Investa Property Group to China Investment Corp, a sovereign wealth fund. Nearly half of those came from Asia, including from Chinas biggest privately owned business, Fosun International Ltd . CIC had also been mentioned at the time as a leading contender.
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Morgan Stanley (MS), valued at $76.29B, started trading this morning at $39.26.
During the trading session, MS traded between $38.92 to $39.38 with the price of the stock fluctuating between $31.12 to $41.04 over the last 52 weeks.
MS shares are currently priced at 13.11x this years forecasted earnings, which makes them relatively inexpensive compared to the industrys 14.80x earnings multiple for the same period.
The company pays shareholders $0.60 per share annually in dividends, yielding 1.50%.
According to a consensus of 25 analysts, the earnings estimate of $0.73 per share would be $0.08 better than the year-ago quarter and a $0.01 sequential increase. In looking at the bigger picture, the full-year EPS estimate of $3.02 would be a $0.70 improvement when compared to the previous years annual results.
The quarterly earnings estimate is predicated on a consensus revenue forecast of $8.89 Billion. If reported, that would be a 2.30% increase over the year-ago quarter.
More recently, Atlantic Equities Initiated MS at Neutral (May 7, 2015). Previously, MKM Partners Initiated MS at to Buy.
The average price target for MS shares by the analysts covering the stock is $41.67, which is 6.14% above where the stock opened this morning.
Summary (NYSE:MS): Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. The companys Institutional Securities segment offers financial advisory services on mergers and acquisitions, divestitures, joint ventures, corporate restructurings, recapitalizations, spin-offs, exchange offers, leveraged buyouts, takeover defenses, and shareholder relations, as well as provides capital raising and corporate lending services. This segment also engages in sales, trading, financing, and market-making activities, including institutional equity, fixed income and commodities, research, and investment activities, as well as offers financing services, such as prime brokerage, consolidated clearance, settlement, custody, financing, and portfolio reporting services. Its Wealth Management segment provides brokerage and investment advisory services covering various types of investments comprising equities, options, futures, foreign currencies, precious metals, fixed income securities, mutual funds, structured products, alternative investments, unit investment trusts, managed futures, separately managed accounts, and mutual fund asset allocation programs. This segment also offers education savings programs, financial and wealth planning services, annuity and other insurance products, cash management services, trust and fiduciary services, individual and corporate retirement solutions, and credit and other lending products, as well as fixed income principal trading services. The companys Investment Management segment provides alternative investment products, such as hedge funds, private equity and real estate funds, and portable alpha strategies to institutional and intermediary channels, and high net worth clients, as well as engages in real estate investing and merchant banking businesses. Morgan Stanley was founded in 1924 and is headquartered in New York, New York.
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Fiduciary Trust Company International, a global investment management firm serving individuals, families, endowments and foundations, and an affiliate of Franklin Templeton Investments, operating in Florida as Fiduciary Trust International of the South, completed the relocation of its Miami offices to 2 Alhambra Plaza in Coral Gables on June 27th. Its offices were formerly located at 200 Biscayne Boulevard in Miami's Central Business District.
"This is the perfect time for us to relocate as Fiduciary Trust's presence continues to grow in South Florida and we need to accommodate the evolving needs of our clients and employees by relocating to 2 Alhambra Plaza, which offers first class infrastructure and amenities," said Gail Cohen, Vice Chairman of Fiduciary Trust Company International.
The Alhambra in Coral Gables is interconnected with the Hyatt Hotel and in an ideal location with close proximity to Miami International Airport and major business establishments within Coral Gables' business area. Fiduciary Trust will occupy 12,500 square foot of Class A office space in the 14 story building.
"Our new home is convenient and attractive to the clients we serve," said Teresa Weintraub, President and CEO of Fiduciary Trust International of the South. "We are excited to strengthen our ties with this beautiful city and demonstrate our long-term commitment to our clients, as well as the wealth management, trust and estate, tax, and legal communities in Miami."
About Fiduciary Trust Company International Fiduciary Trust Company International, a global investment management firm, has served individuals, families, endowments and foundations since 1931. With $48 billion in assets under administration and management as of March 31, 2015, the firm specializes in strategic wealth planning, investment management and trust and estate services, as well as tax and custody services. The firm and its subsidiaries maintain offices in New York, Miami, Boca Raton, Los Angeles, San Mateo, CA, Washington, D.C., Wilmington, DE, St. Petersburg, FL, London and Hong Kong. For more information please visit fiduciarytrust.com.
Franklin Resources, Inc. (NYSE: BEN) is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 150 countries. Through specialized teams, the company has expertise across all asset classes -- including equity, fixed income, alternative and custom solutions. The company's more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in 35 countries, the California-based company has more than 65 years of investment experience and over $866 billion in assets under management as of June 30, 2015. For more information, please visit franklintempleton.com.
Copyright © 2015. Fiduciary Trust Company International. All right reserved.
As part of the celebration and in appreciation of the Palo Alto community, Bank of West presented a donation to the non-profit BUILD â Businesses United in Investing, Lending and Development. Through entrepreneurship-based, experiential learning, BUILD prepares youth from under-resourced communities for high school, college, and career success.
We consider it a privilege to serve the families and businesses of Silicon Valley, said Bank of the West Chairman and CEO Michael Shepherd. Our new Palo Alto wealth management center builds upon our long tradition in this vibrant community dating back to 1874, when our bank was founded in San Jose.
To formally welcome clients, Bank of the West hosted a client grand opening event including a ribbon-cutting ceremony and a brief presentation by bank executives and Palo Alto Mayor Karen Holman.
The newest Palo Alto location adds to Bank of the Wests expanding number of wealth management centers, now found in California in San Jose, San Francisco, Walnut Creek, Indian Wells, Newport Beach, Los Angeles, Beverly Hills, and Pasadena; in Omaha, Nebraska; Overland Park, Kansas; and Denver, Colorado. At each of these locations, a team of private client advisors and other wealth management professionals provide clients with the personalized attention to chart and achieve their financial goals, alongside access to the international capabilities of Bank of the Wests parent company, BNP Paribas.Â
Bank of the West is proud of our growth and expansion in Silicon Valley, which is in many ways the epicenter of innovation and entrepreneurship in America. As a result, we are opening this new center dedicated to service affluent, high net worth and ultra-high net worth individuals who live and work in the area, said John Bahnken, senior executive vice president and head of the Wealth Management Group. The opening of the wealth management center is another way we are continuously striving to provide our customers the outstanding service they expect and deserve.
Hosted events at the new Wealth Management Center:
In addition to addressing clients wealth management needs at the new 531 Cowper Street center:
- Clients benefit being able to enjoy an open, interactive environment which may be used as a temporary work space - featuring Wi-Fi, a coffee bar, and a conference room.
- Clients and community organizations may register to use the space to host meetings.
- From October 12 to November 12, 2015 Bank of the West will showcase the exhibit Wave by BNP Paribas. The exhibit â which is open to the public - aims to provide inspiration and a forum for discussion and sharing about How Collective Ingenuity is Changing the World.
About Bank of the West Wealth Management:
Bank of the West Wealth Management provides wealth planning, investment management personal banking and trust services. The group is part of BNP Paribas global wealth management business of more than 6,300 professionals in 30 countries worldwide with $15.5 billion as of June 2015* in assets under management inÂ the United StatesÂ and â¬332 billion ($372 billion) in assets under management globally as ofÂ March 2015.
About Bank of the West:
Bank of the West is a regional financial services company chartered in California and headquartered in San Francisco with $70.9 billion in assets as of March 31, 2015. Founded in 1874, Bank of the West provides a wide range of personal, commercial, wealth management and international banking services through more than 600 offices in 22 states and digital channels. Bank of the West is a subsidiary of BNP Paribas, which has a presence in 75 countries with 185,000 employees.Â
Deposit and loan products offered by Bank of the West
Member FDIC. Equal Housing Lender.
Â2015 Bank of the West.