Estate planning with legal entities requires strategic planning, says Atlantic Trust

These strategies are often a significant part of the complexities of wealth management for the benefit of multiple generations

NEW YORK, Feb. 12, 2015 /PRNewswire/ - Legal entities can provide powerful benefits to a family's overall wealth management plan but only if they work together as a cohesive, smoothly running unit, according to Atlantic Trust, the U.S. private wealth management division of CIBC (NYSE: CM) (TSX: CM).

Legal entities—partnerships, limited liability companies and trusts—can be set up for educating future generations, developing the family legacy or diversifying concentrated wealth, but they require special management skills to achieve their purpose. Improper management could result in a tangled web of individual strategies that can feel more restrictive than helpful.

"While most people give considerable thought and discussion to entities as part of their wealth management plan, over time the original purpose of a particular strategy can become cloudy," says Linda S. Beerman, managing director and head of wealth strategies at Atlantic Trust. "In addition, layers of additional strategies, while their intent is good, can become an expensive, time-consuming burden to manage."

One particularly effective wealth transfer strategy, for example, is to sell a family investment entity to a long-term grantor trust. This structure can provide many attractive planning benefits but requires the interaction of multiple entities at once. Administering the strategy is complex and can appear daunting without the help of a qualified wealth management professional.

"Clients frequently come to Atlantic Trust with what seems like a simple question , but that question can have far-reaching implications," says Beerman, "for instance, 'Should I deed our family vacation home to our children in equal shares?' Although that might be the simplest way to effect the transfer, it is rarely one that works for growing young families for the long-term."

In this case and others like it, there are many issues that should be considered; the answers will inform how such a shared arrangement would be structured. Atlantic Trust's professional administration allows clients to think about the merits of the investments themselves rather than the sea of paper that goes along with it. To learn more about Atlantic Trust's approach to wealth management, click atlantictrust.com, or visit our Online Resource Center.

Atlantic Trust does not provide legal or tax advice, and the information contained herein should only be used in consultation with your legal, accounting and tax advisers.

About Atlantic Trust

Atlantic Trust is one of the nation's leading private wealth management firms, offering integrated wealth management for high net worth individuals, families, foundations and endowments. The firm considers clients' financial, trust, estate planning and philanthropic needs in developing customized asset allocation and investment management strategies. Experienced professionals deliver a broad range of solutions, including proprietary investment offerings and a robust open architecture platform of traditional and alternative managers. Atlantic Trust operates in 12 full-service locations throughout the U.S. with $25.9 billion in assets under management (as of October 31, 2014). For more information, visit www.atlantictrust.com.

About CIBC

CIBC is a leading Canadian-based global financial institution. Through our Retail and Business Banking, Wealth Management and Wholesale Banking businesses, CIBC provides a full range of financial products to individual, small business, commercial, corporate and institutional clients in Canada and around the world. CIBC owns a 41 percent equity interest in American Century Investments®, a major U.S. asset management company, serving financial intermediaries, institutions and individuals, and acquired Atlantic Trust, a premier U.S. private wealth management firm, in January 2014. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.

SOURCE Atlantic Trust Private Wealth Management

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