Once a DAPT or another type of trust has been created, it is of no client benefit until it is funded with assets. Trust assets typically include: (1) cash (2) securities (3) LLCs holding business assets, real estate, and assets such as aircraft and boats. Each asset under consideration for transfer into a DAPT must be evaluated from different vantage points including: effect on legal protection, taxation, business and growth potential and future distribution to a spouse and heirs. Thus, the asset transfer planning process is a critical planning area where Liberty Street’s nonpareil one-stop capabilities and experiences become critical.
One of our important umbrella capabilities is Liberty Street Capital, an independent, fee-only, registered investment advisor. Over the decades, we have learned that, there is a tendency of clients to tilt toward the promise of higher return over lower risk. We help clients understand that the process must begin with each client understanding and defining his or her acceptable risk parameters. Then a portfolio should be developed that maximizes the return potential for the chosen level of risk. We aid this process by applying the asset allocation investment and risk management principles pioneered by the Nobel Laureates from the University of Chicago. For example, we encourage clients to choose from portfolio models offering varying degrees of risk. Importantly, we believe that skilled risk management will increase returns over time.