Trust Assets: Dealing with Family Finances

Client Situation: Marcus Jacobson recently passed away, leaving his wife Judith in hospice care and his two children, Mitzi and Barry. Mitzi and Barry are Trustees given Judith’s inability to manage her investments. Barry lives overseas and is frequently offline for weeks at a time, making it difficult for Mitzi to facilitate the use of Trust assets as the primary caregiver to Judith.

Investable Assets: Investable assets include three Family Trusts ($1.6M), two Rollover IRAs ($1.6M), and a Traditional IRA ($250k)

Beacon Pointe Value Add:

We understand that every client has their own unique financial circumstances. Our goals in this case were:

  • Transition:  The key here was sorting through accounts, consolidating the investments, and setting it up with Mitzi as the delegated Trustee so that she can effectively administer monthly distributions to cover Judith’s care and home maintenance.
  • Financial Planning:  A cash flow analysis gave us insight into the incoming (required distributions from the IRAs, a spousal pension benefit from Marcus’s Northrup Grumman pension, social security, etc.) and outgoing expenses. From this, we narrowed down the ideal asset allocation to help achieve income to support Judith during her lifetime while projecting the rest of the assets to grow and create a legacy for Mitzi and Barry.
  • Portfolio Management:  Marcus Jacobson was a very active investor, making trades from his hospital bed all the way up to his passing. He was comfortable with risk and left behind a portfolio of individual stocks with high volatility. To meet family income needs and align the portfolio with Judith’s goals and time horizon, there was significant repositioning and de-risking required.


  • To organize Judith’s financial life after the passing of her husband
  • To provide regular income to cover Judith’s care and ongoing expenses
  • To protect the family estate for current and future generations
  • To keep Barry in the loop while not bothering him with the day-to-day administration of Trust assets

Beacon Pointe Action Items:

  • Transition Items
    • Coordinate with CPA to understand tax withholdings required from IRA distributions in order to deliver after-tax income for Judith’s expenses
    • Coordinate with Estate Attorney to prepare a Delegation of Trustee, giving Mitzi power to sign off on time-sensitive administrative items such as re-titling of investment and bank accounts
    • Open a new inherited IRA in the name of Judith, with a new Power of Attorney for Mitzi (the previous POA had expired) to help ensure ease of distributions and account maintenance
  • Get Financially Organized Utilizing Beacon Pointe’s Online Financial Planning Dashboard
    • 5 Year Cash Flow Plan/Projection
    • Consolidated Net Worth statement provided to Mitzi, Barry, and Estate Attorney
  • Account Consolidation and Setup of Distributions
    • All checking and savings accounts were re-titled into the name of family Trust
    • Monthly distributions were set up for Judith’s expenses starting with IRA distributions and later from the family Trust account
  • Beacon Pointe Portal and Performance Updates
    • Set both Mitzi and Barry up on Beacon Pointe’s investment portal to ensure that Barry is aware of everything going on with the Trust investments despite him living far away and in another time zone

To view other Beacon Pointe client case studies, click here.

Important Disclaimer: Case studies presented are hypothetical scenarios and intended for illustrative purposes only. They do not represent an actual client or an actual client’s experience but rather are meant to provide an example of Beacon Pointe’s process and methodology. An individual’s experience may vary based on his or her circumstances. There can be no assurance that the Firm will be able to achieve similar results in comparable situations. No portion of this case study is to be interpreted as a testimonial or endorsement of the Firm’s investment advisory services, and there is no way for Beacon Pointe to ascertain whether the hypothetical client would have been satisfied with their results. The information contained herein should not be construed as personal investment advice.

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