Category: Uncategorized

Apr 23rd

Are You Getting the Most out of Your Tax Planning Services?

Are you maximizing your after-tax returns to the fullest extent possible? This question holds immense weight for ultra-wealthy individuals as they navigate the complex landscape of taxation. Despite employing the expertise of traditional financial advisors and tax professionals, many find themselves falling short of truly optimizing their tax planning strategies. The seasoned wealth management advisors who make up the backbone of Whittier Trust’s family office services recognize the intricate challenges our clients face, and we pride ourselves on offering tailored solutions and tax planning services that are always geared to optimize their tax efficiency. Let’s delve into the role family office services can play in navigating the complexities of tax administration for ultra-wealthy individuals and families.

Benefits of Receiving Guidance and Administration from a Family Office

Family office services serve as the cornerstone of comprehensive wealth management for wealthy individuals and families. By entrusting their tax planning and administration to experienced advisors, clients gain access to a host of expertise tailored to their unique financial circumstances. Family offices develop a holistic tax plan considering the family's income, investments, trusts, and estate. This minimizes tax liabilities across estate, gift and income taxes, which includes pass-through, individual, corporate and fiduciary taxation. A family office can also act as your eyes and ears, constantly monitoring tax law changes and identifying opportunities to further optimize the family's tax situation. Our team of professionals possesses an in-depth understanding of tax laws, regulations, and industry trends, enabling us to devise customized tax planning strategies that align with our clients' long-term objectives while ensuring smooth day-to-day tax administration. We handle everything from filing returns and record keeping to expense tracking and payroll taxes. We also collaborate with external tax professionals for seamless compliance and accuracy.

Understanding the Complexity of Personal Taxes for the Ultra-Wealthy

Our clients operate within a landscape of multifaceted tax regulations and obligations. With diverse income sources–including investments, business ventures, and real estate holdings, many of which have been passed down intergenerationally–their tax liabilities extend far beyond the scope of conventional taxpayers. Here's how our advisors approach some of the most important considerations for our clients:

Multiple Jurisdictions:

We understand the complexities of managing assets and income across various locations, including both domestic (state and federal) and international jurisdictions. Each jurisdiction has its own unique tax laws, including income taxes, property taxes, and estate taxes, with varying rates and regulations. We help clients navigate these complexities to minimize tax burden and avoid double taxation. Our advisors can assist with navigating the nuances of multi-state taxation within the U.S. This includes understanding how state and federal income taxes interact, as well as property and estate tax implications across different states. For clients with international assets, it's crucial to remember that U.S. citizens and residents are taxed worldwide. We help navigate the intricacies of tax treaties, foreign tax regimes, and potential inheritance taxes impacting these assets. Our family office can coordinate with experienced tax professionals in both domestic and international jurisdictions. This ensures your assets are managed by experts with in-depth knowledge of the specific tax laws and applicable regulations. By understanding your unique circumstances and goals, our advisors can also provide insights on potential residency or asset location strategies that may enhance tax efficiency.

Non-Traditional Assets:

Investments in private equity, real estate, and alternative assets pose unique tax considerations. We help our clients value these assets for tax purposes and devise strategies to optimize their tax efficiency. When considering unique asset classes, our clients know that access to the best investing professionals and specialized tax advisors is crucial for performance. A multi-family office with a hybrid architecture is uniquely suited to managing such a team of experts. 

Estate Taxes:

We provide comprehensive strategies to minimize estate tax burdens across generations, incorporating careful planning and knowledge of complex tax laws surrounding trusts, gifts, and inheritance. Strategic planners are already eyeing the crucial shift in estate tax exemption for 2025 and beyond, with the amount in 2026 slated to be half of the 2025 amount with an inflation adjustment. Past experiences, such as the panic-inducing sunset of the lifetime gift tax exemption in 2012, highlight the necessity for proactive planning with family offices to navigate impending changes, ensuring access to estate planning attorneys and informed decision-making.

Pass-through Entities:

Many of our clients utilize complex structures like partnerships and LLCs for wealth management. Our advisors are well-versed in the tax implications and filing requirements associated with these entities, ensuring our clients remain compliant while maximizing tax benefits. Currently, our advisors are monitoring the impact of tax changes on pass-through entities, particularly regarding the Qualified Business Income (QBI) deduction under the TCJA. While pass-through entities initially had a tax advantage, the expiration of the QBI deduction and increased individual tax rates post-2026 diminish their appeal compared to C corporations, which are subject to a consistent 21% tax rate.

Charitable Giving:

Optimizing tax benefits from charitable contributions requires a deep understanding of foundation management. Our advisors assist clients in structuring their charitable giving to maximize tax advantages while aligning with their philanthropic goals and family values. Keeping the books for philanthropic efforts can often be a large undertaking. Our family office and philanthropic department ease this burden by handling quarterly and annual financial statements, issuing checks, and organizing necessary files for taxes and audits. We collaborate with the foundation’s CPA to facilitate tax preparation. For California-based private foundations or charitable trusts earning over $2 million annually, an audit is mandated the following year. This number can be challenging to track, so our advisors vigilantly monitor this threshold for our clients.

We understand that maintaining meticulous records and complying with complex reporting requirements can be burdensome for our clients. That's why we provide dedicated support and guidance throughout the process, ensuring effective management of these considerations while alleviating the administrative burden for individuals and families.

The Importance of Access to Tools and Techniques for Effective Tax Planning

Another boon to working with a family office is the access to sophisticated tools and increased exposure to industry-leading tax administrative and strategic techniques, which Whittier Trust advisors consistently update to ensure optimal tax efficiency. Our family office uses cloud-based tax software which facilitates secure and efficient management of tax and other data, enabling real-time collaboration and infallible storage. Advanced data processing and analytics tools help identify tax optimization opportunities and potential risks based on historical tax data and current strategies. Robust cybersecurity measures protect sensitive financial data, ensuring clients' peace of mind.

From income-shifting strategies to charitable giving, we employ diverse tactics to minimize tax liabilities while preserving wealth. We’re also always looking for new ways to optimize your assets with a long-term approach. With potential changes to the estate tax exemption looming, one of the levers we’ve been bullish on over the past few years are Grantor Retained Annuity Trusts (GRATs). GRATs have emerged as a strategic tool in tax planning thanks to their tax efficiency and flexibility, especially during periods characterized by high interest rates 

Unlike conventional gifting methods, a GRAT facilitates the transfer of only the appreciation on trust assets, rendering it potentially gift and estate tax-free. This makes GRATs particularly appealing for individuals who have already maximized their lifetime gift tax exemptions or those uncertain about their utilization. Despite being an irrevocable trust, GRATs possess unique characteristics, such as the ability for the grantor to retain certain powers, including substituting trust assets, which enhance their flexibility. The success of a GRAT hinges on the assets' appreciation outpacing the annuity stream, especially vital in high-interest rate environments. Notably, a "rolling GRAT" strategy, comprising short-term GRATs funded by annuity payments from preceding ones, mitigates mortality and interest rate risks, exemplifying adaptability in tax planning. 

Personalized & Comprehensive Guidance: The Cornerstone of Family Office Services

The complexities of tax administration for ultra-wealthy individuals and families necessitate a comprehensive approach grounded in expertise and personalized guidance. It’s important to engage with a family office committed to empowering you with the tools, strategies, and support you need to consistently adapt to, and proactively navigate, the intricate landscape of tax planning and administration successfully. By leveraging our extensive experience and resources, we enable our clients to achieve their financial objectives while minimizing tax liabilities and preserving wealth for future generations. It’s never the wrong time to ask yourself if your tax planning strategies are working for you.

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If you’re curious about our family office and tax planning services and how they might ease the administrative burden on you and your family, we invite you to speak with one of our wealth management advisors by visiting our contact page.

 

From Investments to Family Office to Trustee Services and more, we are your single-source solution.

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Apr 18th

Market Insights – Second Quarter 2024

Watch this video of Sandip Bhagat, our Chief Investment Officer, discussing the latest market insights.

Relative Value... Opportunities or Mirages?

The dramatic melt-up in stock prices during the fourth quarter of 2023 continued into early 2024. Fears of an impending recession continued to recede and economic activity exceeded expectations. Job growth is now down to pre-Covid levels and remains solid. With the Fed firmly on pause after ending rate hikes in 2023, expectations of a pivot to rate cuts took hold during the first quarter.

Stronger-than-expected growth and the potential advent of monetary easing propelled the S&P 500 higher by 10.6% in the first quarter. The Nasdaq 100 rose by 8.5% and the Russell 2000 index of smaller companies gained 5.2%.

The unexpected economic strength was also accompanied by unexpected increases in monthly inflation. Forecasts for the number of Fed rate cuts fluctuated wildly and fell from 7 to 3 by the end of March. Bonds sold off as a result and the 10-year Treasury bond yield rose from 3.9% to 4.2% during the quarter.

Several concerns still linger in investors’ minds. The recent uptick in inflation may halt or reverse the downward trend of disinflation. A higher-for longer restrictive Fed might derail the economy and the stock market. The generally reliable signal from an inverted yield curve is still calling for a recession. And finally, many fear that stock valuations may be dangerously stretched and earnings expectations may be unrealistically lofty.

We addressed these concerns in our 2024 outlook published last quarter. We devote this article to a deeper dive on stock valuations. As investors fret high stock valuations, especially in mega-cap growth companies, they are now searching for more attractive “relative value” opportunities within the global equities universe.

Small cap and international stocks have significantly underperformed in recent years. As a result, their valuations have declined. On a relative basis, their valuation differential to U.S. large cap stocks is now approaching all-time lows.

Figure 1 illustrates the stark valuation differentials between U.S. large (LRG), mid (MID) and small (SML) companies and those in the developed (DEV) and emerging (EM) international markets. We show P/E ratios for each equity index based on 2024 earnings estimates.

Figure 1: P/E Ratios Across Size and Regions

Source: FactSet, US Large: S&P 500 Index, US Mid: S&P 400 Index, US Small: S&P 600 Index, Developed: EFA ETF, Emerging: EEM ETF

A similar valuation dispersion is also observed between value and growth stocks. Value stocks are those that trade at lower P/E multiples; they have underperformed growth stocks by a wide margin in recent years. One of the widely believed stock market anomalies is the propensity of value stocks to outperform growth stocks in the long run.

At this point in the cycle, a big valuation gap is only one of many factors that make small cap, value and international stocks more interesting. Small cap and value stocks usually outperform during a revival of growth after a slowdown. As the prospects of a recession abate, we are conceivably at an inflection point for the resumption of economic growth.

International stocks perform better when the global economy improves and the dollar remains weak or neutral; both of these conditions are likely to prevail in the coming months. And finally, the breadth in the U.S. stock market is remarkably narrow. At the end of March, the top 10 stocks in the S&P 500 index made up an extraordinary 34% of its market capitalization and accounted for 82% of its return in the last 15 months. If breadth expands to more normal levels, value and small cap stocks will most likely benefit.

We recognize these arguments in favor of small cap, value and international stocks. We are even intrigued by their potential to enhance portfolio returns.

But are small cap, value and international stocks truly attractive “mispriced” opportunities, or are they mirages and potential value traps?

We look for important fundamental differences between these equity sub-asset classes which may explain their big valuation differentials. We identify and examine three key differentiators within the equity universe.

  • Sector composition

  • Growth prospects

  • Fundamental quality

We find that there are sufficiently large variations in these fundamental factors to justify the divergence in relative valuations.

We caution, therefore, that “all that glitters may not be gold” in the world of relative valuations. Investors will be better served to look past mirages and avoid value traps where cheap stays cheap or gets even cheaper.

Sector Composition

The U.S. has produced some of the world’s most innovative, successful and dominant companies in recent years. Most of them are either Technology companies or ones whose business model leverages technology in a big way.

On many levels, U.S. large companies exemplify the New Economy where technology lowers costs and increases growth, profits and productivity. Developed international companies lie at the other end of the spectrum. Financials and Industrials dominate the developed international index within a more conventional Old Economy setting.

Figure 2 arrays the sector weights for U.S. large, mid and small companies and those in the developed and emerging international markets.

Figure 2: Sector Weights Across Size and Regions

Source: FactSet, US Large: IVV ETF, US Mid: IJH ETF, US Small: IJR ETF, Developed: EFA ETF, Emerging: EEM ETF

Figure 2 shows larger sector weights within each of the five equity indexes in deeper shades of blue. Two key observations jump out from the heat map of sector weights.

i. The Technology and Communications sectors make up almost 40% of LRG, but are less than 15% of MID, SML and DEV.

ii. Conversely, the Financials and Industrials sectors make up almost 40% of MID, SML and DEV, but are just around 20% of LRG.

At its core, the higher weight in the higher P/E Technology and Communications sectors and the lower weight in the lower P/E Financials and Industrials sectors make LRG more expensive than MID, SML, DEV and EM.

We can adjust for sector weight differentials by equalizing all sector weights to a common level e.g. those seen in LRG. We can then compute sector-adjusted P/E ratios for each of the five equity sub-indexes.

Figure 3 shows sector-adjusted P/E ratios for a more apples-to-apples comparison with equal sector weights.

Figure 3: Sector-Adjusted P/E Ratios across Size and Regions

Source: Same as Figure 1

We can see that the green sector-adjusted P/E ratios show less dispersion than the original blue P/E ratios. The higher valuation of the U.S. large cap index is attributable to the presence of several leading companies whose superior fundamentals command a premium valuation. We believe sector composition is one reason why U.S. large cap stocks are justifiably more expensive.

Growth Prospects

The most general framework for stock valuations is based on discounted cash flow analysis. The price of a stock today is the present value of all future cash flows. In a simplified model with constant parameters, the P/E multiple can be estimated from the dividend payout ratio, the growth rate of cash flows and the required rate of return.

It is both well-documented and intuitive that the higher the growth rate, the higher the P/E multiple. The required rate of return incorporates a “risk premium” which compensates investors for bearing greater risk. The more risky the stock, the higher the required rate of return and the lower the P/E multiple.

We first look at the growth rate of earnings and then the riskiness of companies to understand variations in P/E ratios.

Even though stock valuations are a function of both growth rates and riskiness, a useful heuristic has evolved over the years for those investors who wish to focus primarily on a company’s growth prospects. The P/E to Growth (PEG) ratio divides the stock’s P/E ratio by its growth rate. Although blunt and narrow in scope, this simple adjustment neutralizes the effect of growth rates on P/E ratios. The higher the growth rate, the lower the PEG ratio and the cheaper the stock valuation.

While intuitive, the actual calculation of the PEG ratio is a bit complicated by the difficulty in estimating growth rates. Although historical earnings growth rates can be easily calculated, they may not be a reliable indicator of future growth rates. Analyst earnings estimates are generally available for the next two fiscal years; longer-term future growth rate estimates are either unreliable or simply not available.

Since the PEG ratio is a simplified valuation metric, estimation errors in growth rates become less meaningful. In any case, growth rates tend to be fairly correlated over time and, therefore, do not change abruptly.

We compare the three U.S. equity indexes on PEG ratios in Figure 4. We use available analyst earnings estimates to calculate future intermediate term growth rates. The P/E ratio is still based on 2024 earnings estimates.

Figure 4: PEG Ratios across U.S. Size Indexes

Source: Same as Figure 1

We saw earlier that, based on just P/E ratios, LRG is more expensive than MID, which in turn is more expensive than SML.

Figure 4, however, depicts a different picture after adjusting for growth. The PEG ratios for the three equity size indexes look more uniform; MID actually looks the most expensive based on this measure. This shift in relative value comes from differences in earnings growth rates. LRG has a stellar double-digit earnings growth rate while MID has a growth rate which is only half as high.

The high growth projections for the Magnificent 6 (Nvidia, Microsoft, Apple, Alphabet, Meta and Amazon) highlight the importance of this factor. The Magnificent 6 are expected to grow sales by 13%, earnings by 17% and free cash flow by 22% annualized over the next five years; it makes perfectly good sense for this impressive growth trajectory to drive elevated P/E multiples.

We conclude this section with a simple observation. The higher valuations of U.S. large cap stocks may be more attributable to higher growth rates than to mere speculation.

Finally, we take a look at the diffuse and amorphous concept of fundamental quality to further understand differences in P/E ratios.

Fundamental Quality

We have so far discussed size, value and growth; they are all fundamental drivers of stock valuations and returns. The common theme across these three factors is that they can be defined easily and measured fairly precisely. Size is simply market capitalization, value is the ratio of price to earnings, sales, free cash flow or book value and growth measures the annualized change in earnings, sales or free cash flow.

Unlike these clear and homogenous factors, the concept of quality tends to be more nebulous and heterogeneous. Some investors may associate high quality with high profitability; they would focus on return on assets, return on equity and return on invested capital. Others may look for more efficient capital allocation in the form of reduced debt, higher dividends and more share buybacks.

Yet others would approach quality from the perspective of how risky a company is. In this instance, higher quality would imply better balance sheets and stronger income statements derived from superior business models. Attributes that capture high quality in this vein may include low earnings variability, low volatility of operating margins, low financial or operating leverage and low accounting accruals.

The heterogeneity of high-quality companies and their myriad risk exposures make it difficult to quantify the impact of the quality factor on valuations. Nonetheless, it is reasonable to infer that high quality embodies stability, durability and resilience and should lead to higher valuations.

For the scope of this article, we stick with a qualitative discussion of the quality theme. We look at return on invested capital (ROIC) as a broad measure of profitability. Companies invest capital in people and assets to earn a rate of return. In order to be accretive to economic value, this return must exceed the firm’s weighted average cost of debt and equity capital.

The return on invested capital is a powerful profitability metric that affects both current valuation and future earnings and returns. Large increases in ROIC will enhance firm value and generate higher returns. A high level of current ROIC captures past value creation and is reflected in higher valuations.

We examine ROIC and other measures of profitability for our five equity indexes. We also look at the relative volatility of earnings and margins. Here are some generalized observations.

a. The return on invested capital for U.S. large companies is higher than it is for any of the other size or regional indexes. In fact, the ROIC for LRG is almost double the ROIC for SML. The same is true for return on equity.

b. Return on invested capital for LRG now exceeds 10% and its return on equity is greater than 20%. These are unprecedented levels of profitability for any stock market index. We believe these levels and trends are sustainable for U.S. large companies.

c. At the same time, the relative standard deviation for ROIC as a risk measure is almost twice as high for MID and SML as it is for LRG. The relative standard deviation for operating margins follows a similar pattern.

U.S. large cap stocks have higher financial and operational quality. They are fundamentally more profitable and less risky than their small cap and international counterparts. We believe a big portion of their premium valuation comes from the positive quality differential in their favor.

Summary

Investors are mindful of high stock valuations overall and the potential for a broadening of this stock market rally beyond mega-cap growth companies. Against this backdrop, they are focused intently on uncovering relative value within equity sub-asset classes such as small cap, value, international developed and emerging market stocks.

We assess whether the big valuation differential between U.S. large cap stocks and the other equity sub-indexes is justified fundamentally or simply a profitable mispricing opportunity. We look at sector composition, growth prospects and fundamental quality as potential drivers of valuation differentials.

U.S. large cap stocks have a greater representation of highly profitable, faster growing and higher P/E Technology and Communications companies. They also encompass higher fundamental quality as defined by a myriad of factors.

In large part, small cap, value and foreign stocks are cheaper for a good reason. They are more heavily invested in less attractive companies and industries which exhibit lower profitability, slower growth, lower quality and greater fundamental risk in earnings and margins.

We believe that adjusting for sector composition, growth rates and fundamental quality eliminates most of the valuation differences across equity sub-indexes. It may yet make sense to look beyond U.S. large cap stocks. We believe the reason to do so would be for the macro considerations of a revival in growth and risk appetite; it is less likely because of fundamental mispricing at a micro level.

We are more comfortable that the coast is becoming clearer for risk assets. Since economic growth is stronger than expected, we do not expect a higher-for-longer interest rate backdrop to derail stocks. At the same time, we remain vigilant for unforeseen and unexpected risks to our outlook.

To learn more about our views on the market or to speak with an advisor about our services, visit our Contact Page.

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 Sector composition is one key reason why U.S. large cap stocks are justifiably more expensive.

 

The higher valuations of U.S. large cap stocks may be more attributable to higher growth rates than to mere speculation.

 

U.S. large cap companies also have higher financial and operational quality — they are more profitable and less risky.

From Investments to Family Office to Trustee Services and more, we are your single-source solution.

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Apr 12th

Want a Tax-Efficient Portfolio? Focus on These 3 Areas

Deploying tax-efficient strategies within an investment portfolio is one of the most critical roles of a financial advisor, especially because many investment managers focus on pretax investment returns. By emphasizing after-tax returns, advisors may better meet the needs of their high-net-worth clients—particularly in high-tax states.

Here are three key areas to focus on to improve after-tax returns:

Think asset location.

Not to be confused with asset allocation, asset location is one of the most effective tactics in maximizing after-tax gains. This means tax-inefficient assets—corporate bonds, private debt, high-turnover strategies—belong in tax-deferred or tax-exempt accounts, compounding tax-free.

For taxable accounts, prioritize tax-efficient options such as low-turnover stock strategies, direct index solutions, low-dividend growth equities, municipal bonds, or preferreds with qualified dividends. Let compounding work its magic in a tax-efficient way. Growth assets should be allocated to accounts for future generations, while income-oriented assets belong in accounts with shorter time horizons.

Emphasize long-term capital gains.

Sometimes the best strategy is patience. Despite the potential for tax law changes ahead, time-tested tax-efficiency strategies will continue to reward high-net-worth families.

The longer assets are held, the more returns compound with minimal tax drag. Let time be your ally and factor in the long-term capital gains advantage. Over time, the difference between realizing or deferring long-term capital gains and avoiding higher short-term capital-gains tax rates will lead to better after-tax results.

Plan ahead for 2025.

Truly strategic planners are already looking ahead to 2025 and beyond when there may be a crucial shift in the lifetime exemption from estate taxes.

The current $13.61 million per person exemption is slated to be effectively cut in half, aligning itself with pre-2017 Tax Cuts and Jobs Act levels (adjusted for inflation) if Congress doesn’t act. The situation facing advisors and clients is similar to that of 2012 when gift tax exemption provisions were set to expire at the end of that year. Proactive measures, including early collaboration with estate planning attorneys, will ensure well-considered decisions and prevent last-minute decisions made under pressure.

Incorporating tax sensitivity into everyday portfolio management, along with proactive planning for potential tax law changes, strengthens the compounding power of client portfolios.

The ever-growing U.S. budget deficit increases the likelihood of tax changes, potentially including a decrease in the estate tax exemption and a rise in the tax rate. By focusing on these three key areas of tax efficiency, advisors can empower their clients to navigate these changes effectively and achieve superior after-tax returns.

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Written by Caleb Silsby, Executive Vice President, Chief Portfolio Manager at Whittier Trust. For more information, start a conversation with a Whittier Trust advisor today by visiting our contact page.

 

From Investments to Family Office to Trustee Services and more, we are your single-source solution.

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Mar 22nd

Whittier Trust Announces Promotions and Continued Investment in Talent

Whittier Trust, the oldest wealth management firm headquartered on the West Coast, announced six promotions across its California and Nevada offices. The promotions reflect Whittier Trust's commitment to investing in key talent and ensuring exceptional service for its clients.

Promoted Executives:

Jeffrey J. Aschieris: Vice President, Client Advisor

Amanda Buntmann: Vice President, Client Advisor

Kayla La Dow: Vice President, Portfolio Manager

Danielle Delmar: Vice President, Human Resources

Keith S. Fuetsch: Vice President, Client Advisor

William Alec V. Gard: Vice President, Client Advisor

"These well-deserved promotions recognize the consistent high performance and exceptional client focus these individuals demonstrate. We are proud of our team's expertise in providing personalized service to our valued clients," says David Dahl, President and CEO of Whittier Trust. "We're proud to say that the Whittier Trust standard of personalized service is upheld by experienced and skilled client advisors and portfolio managers, and this group excels at addressing the needs of our growing client base."

Whittier Trust's Commitment to Growth:

The promotions follow Whittier Trust's relocation to Pasadena in November 2023 and are part of a strategic plan to ensure continued growth and exceptional client service. Whittier is committed to investing in talented employees and ensuring that services exceed the expectations of our clients.

The following outlines the updated titles and expertise of the recently promoted executives detailed by the Whittier Trust office.

Newport Beach Office

Jeffrey J. Aschieris - Vice President, Client Advisor:

Jeff Aschieris specializes in trust administration, estate planning, and tailored family office services with a focus on personal financial planning for Whittier Trust clients. Holding an MBA from the USC Marshall School of Business and a Bachelor's degree in business administration from the College of Charleston, Jeff is a Certified Trust and Fiduciary Advisor (CTFA). He is also a two-time national sailing champion and an enthusiastic runner who volunteers with Ainsley's Angels, a charity dedicated to involving wheelchair-bound individuals in running races.

Danielle Delmar - Vice President, Human Resources:

Danielle Delmar previously served in the role of Manager, Talent Acquisition & Leadership Development. She leverages her six years with the firm and her twenty years of experience across multiple professional industries to source and hire top-tier talent. Danielle is deeply involved in her local community, balancing her professional responsibilities with raising her two teenage children. Her international career journey spans from Sydney, Australia, to New York, and she now resides in Newport Beach.

Kayla La Dow - Vice President, Portfolio Manager:

Kayla La Dow guides high-net-worth families through asset allocation, risk evaluations, capital market expectations, and the importance of after-tax performance within their portfolios. As a Vice President and Portfolio Manager, she plays a pivotal role in assisting clients with both asset allocation and asset location as she navigates complex balance sheets and portfolios. Kayla has been with Whittier Trust since 2016 and holds an MBA from the USC Marshall School of Business. In her spare time, Kayla assists a local Newport Beach foundation as a grants manager and trustee, helping support local, national, and international youth athletic endeavors. In her leisure time, you’ll find her traveling or enjoying time on the water.

Pasadena Office

William Alec V. Gard - Vice President, Client Advisor:

Alec Gard manages and advises high-net-worth clients, specializing in working with clients' network of trusted business professionals to solve complex estate planning challenges. He holds a B.S. in Finance from George Mason University, certifications including CTFA and AIFM®, and is currently pursuing an MBA at the USC Marshall School of Business. Alec draws on his East Coast upbringing, lifelong passion for golf, and almost 10 years in the industry to provide unique solutions to his clients' wealth management needs.

Reno Office

Keith S. Fuetsch - Vice President, Client Advisor:

Keith Fuetsch provides financial and fiduciary services for high-net-worth individuals and families. With more than five years in Wealth Management, he collaborates closely with clients and advisors to tailor investment and wealth strategies to unique needs, goals, and values. Keith is a Certified Financial Planner™ (CFP®), a Certified Trust and Financial Advisor (CTFA), and holds a Bachelor's and a Master's degree from the University of Nevada. He is also an active member of the Reno community, serving as a board member of the University of Nevada College of Business Alumni Association and the Reno Connection Network.

West Los Angeles Office

Amanda Buntmann - Vice President, Client Advisor:

Amanda Buntmann specializes in providing philanthropic advisory and administrative services to high-net-worth clients. With a decade of experience in nonprofit organizations, Amanda brings a wealth of expertise to her role, supporting foundations and donor-advised funds and ensuring clients can confidently pursue their philanthropic endeavors. Currently completing her Certified Trust and Fiduciary Advisor designation (CTFA™), Amanda already holds a Chartered Advisor in Philanthropy (CAP®) designation, as well as Bachelor's and Master's degrees from the Universities of San Diego and Arkansas respectively.

"I want to celebrate the hard work and dedication these impressive individuals have poured into this company. We're overjoyed to serve alongside them in their new roles and are excited to see the great things they accomplish for Whittier Trust and our clients on the road ahead," says Dahl.

Mar 20th

Six Reasons Why Most UHNWIs Choose a Multi-Family Office

Your family office is a point of pride as well as a smart way to manage your business and personal affairs. But you don’t have to have a gold nameplate and command your own staff to reap all of the family-office benefits. In fact, a multi-family office typically offers greater advantages—and ironically, more control—than a single-family office. Here are six ways that a multi-family office gives you more.

Security & Compliance

Infrastructure, cybersecurity, compliance training . . . it’s tedious, it’s frustrating, and if you’re not out in front of it, you're putting yourself at risk. That’s a lot of pressure for your staff and family. At a multi-family office, we have expert teams on top of changing trends, regulations, and demands.

Flexibility to Evolve

It’s a common misconception that a single-family office will better address your family’s unique needs. But how can it, when it means you have to hire staff for each new development in your life? When your time is spent handling payroll, office space, and interpersonal dynamics, you’re left with less control of your life. The multi-family office infrastructure is designed to give you all the flexibility you need without worrying about reducing, reorganizing, or adding to your team. We hold your business and interests together as you evolve.

Trust & Objectivity

How well do you know your staff and trust their commitment to your goals? Are you certain they won’t be swayed by their own interests? Can they safely suggest different points of view, or do they perhaps feel pressure to agree and conform? How do you gauge their loyalty while allowing dissent? By its very nature, the multi-family office has checks and balances against rogue players or people pursuing their own self-interest. We act as fiduciaries, bound to manage your affairs to your greatest benefit, not ours.

Proactive Leadership

Successful executives are problem-solvers and often visionaries as well, always looking down the road for the next big thing and for solutions to potential issues. But a healthy company doesn’t rely on one leader to see everything. The cross-pollination among executives at a multi-family office creates an acutely proactive environment. Staff at a single-family office, on the other hand, tend to be more reactive to their specific set of circumstances, because focusing on that one family’s needs is the efficient thing to do.

Plus, some multi-family offices, such as Whittier Trust, have robust service offerings spanning various departments. Whether you need help launching a family foundation, acquiring or managing real estate, exploring alternative investments, or working through estate planning options to fit your unique needs, it’s all under one umbrella and at our fingertips.  

Privacy & Continuity

By definition, a single-family office should excel at protecting your privacy. But it can be difficult when multiple branches of a family want to keep their affairs separate. Sometimes you may even end up competing for staff loyalty. Your advisors at a multi-family office act as neutral mediators to help prevent these sorts of conflicts and maintain each family member’s interests and privacy. You can rely on that same team to help facilitate succession planning and generational wealth transfer and provide continuity for decades.

Help with Family Dynamics

No matter which type of office you have, family governance is typically led by a powerful patriarch or matriarch. But with a multi-family office team, there’s a counterbalance to that control dynamic. There are other voices suggesting governance structure and helping organize a family council or regular family meetings, ensuring everyone is heard and respected, and that everything can run smoothly.

How to Transition

So what if you currently have a single-family office and want to transition to a multi-family office? It doesn’t have to be complicated. There are natural points in any business for pausing and reassessing, and given how expensive and stressful a single-family office can be, simplicity and cost-effectiveness are always good reasons for a change. 

Let everyone know it’s time for a fresh analysis and audit of operations. Make it clear that during this transition, you will be analyzing risk and cash flow, prioritizing different investments to accommodate family member’s preferences, digitizing documents, etc. Perhaps you will be adding new services as well, such as philanthropic strategy, trust services, real estate, private equity, or direct investment in alternative assets. Because your team at the multi-family office will be accustomed to working with a wide variety of families, you can maintain relationships with existing staff and integrate key players into your new multi-family office.

Why Whittier Trust

Whittier Trust brings your investments, real estate, philanthropy, administrative services, trust services, and more under one roof—without you having to manage it. You maintain control over your portfolio, while your trusted team of advisors ensures that your investments work in concert with your estate plan. You get holistic, personalized, and responsive service with scalable efficiency. And you and your family get your lives back to enjoy.

For those seeking a seamless transition to a multi-family office, Whittier Trust stands out as an optimal choice. By entrusting your affairs to Whittier Trust, you not only maintain control over your portfolio but also gain access to a dedicated team of advisors committed to aligning your investments with your estate plan. Experience the benefits of holistic, personalized, and responsive service, all while enjoying the freedom to focus on what truly matters—your life and your family. Make the switch today and discover the peace of mind that comes with having Whittier Trust by your side.

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Written by Elizabeth M. Anderson, Vice President of Business Development at Whittier Trust. For more information, start a conversation with a Whittier Trust advisor today by visiting our contact page.

 

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Mar 7th

5 Estate Planning Priorities for 2024: An Essential Checklist

2024 is in full swing, and the start of a new year is a good reminder to take stock of our lives and plan for the future. Effective estate planning is a crucial aspect and its importance cannot be overstated. A well-thought-out estate plan ensures that your assets are distributed according to your wishes, minimizes tax liabilities, and provides for your loved ones while building your legacy. This estate planning checklist covers five priorities for 2024 that should be on your radar.

Work with your estate planning attorney to review and update your will and trusts

One of the fundamental elements of estate planning is having a valid and up-to-date will. Life is dynamic, and circumstances change, so it's crucial to review your will regularly, especially after significant life events such as marriages, births, or deaths in the family. Engage your trusted estate planning attorney to revisit and update any trusts you may have established. This ensures that your assets are distributed as you intend and that your loved ones are provided for according to your current wishes.

Don’t overlook digital estate planning

In this digital age, our lives are increasingly intertwined with online platforms and digital assets. Make 2024 the year you address your digital estate planning. It’s smart to create a comprehensive list of your digital accounts, including usernames and passwords, and store this information securely offline. If you have photos, documents, and other valuable information stored online, consider tapping a trusted individual to act as your “digital executor” to share your digital assets with your beneficiaries. 

Long-term care planning

As life expectancy increases, planning for long-term care becomes more critical. Evaluate your options for long-term care insurance and make decisions regarding potential care facilities. If you already have long-term care insurance, review your policy to ensure it aligns with your current needs and circumstances. Planning for long-term care can protect your assets and provide financial security for you and your family in the event of extended healthcare needs.

Estate plan tax strategies

Estate taxes can significantly impact the distribution of your assets. In 2024, consider working with a financial advisor or tax professional to explore tax planning strategies that can minimize the tax burden on your estate. This may include gifting strategies, setting up trusts, or taking advantage of any available tax credits. A proactive approach to tax planning can help preserve more of your wealth for your beneficiaries. Some of the key changes to be aware of in 2024 include that the gift tax exclusion amount has increased (last year it was $17,000 per individual and $34,000 per married couple). The new amount in 2024 is $18,000 per individual and $36,000 per married couple. Another update to consider: The Federal Estate and Gift Tax exemption has increased to $13.61 million per individual (double that, at $27.22 million for a married couple). In 2026, the amount is expected to drop down to $7 million per individual, so it’s important to work with your tax expert to strategize about how best to maximize your wealth via tax and estate planning, and the start of a new year is a great time to begin. 

From IRS Rev Proc 2023-34

Healthcare directives and powers of attorney

It’s important to ensure that your healthcare directives and powers of attorney are up to date. These documents designate someone to make medical decisions on your behalf if you are unable to do so. Now is a great time to review your choices for healthcare agents and make sure they are still willing and able to fulfill this responsibility in accordance with your wishes. It’s vital to discuss your wishes regarding care with your chosen healthcare agent, providing them with clear guidance on your preferences. This step can alleviate the burden on your loved ones during difficult times and ensure that your healthcare decisions align with your values.

The new year presents an excellent opportunity to reassess and update your estate plan. By working through this simple estate planning checklist you can boost your peace of mind that everything is in order and help safeguard your legacy, protect your assets, and strategically provide for your loved ones. Take the time to consult with legal and financial professionals to ensure that your estate plan is comprehensive, up to date, and aligned with your current goals and circumstances. Planning for the future is not just for yourself; it's a gift to those you care about most.

If you have any questions about estate planning or how Whittier Trust’s wealth management services can help you navigate maximizing your legacy for future generations, we’re here to help. Start the conversation with an advisor today by visiting our contact page.

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Feb 21st

Post-Sunset Taxation of Entities: Decoding the Changes

Efficient tax planning demands a forward-thinking approach, strategically organizing financial affairs to minimize tax liability. An essential element of this approach is the anticipation and understanding of changes in tax laws over time.

The last major overhaul of the tax code came in 2017 when many tax code provisions were changed or added by the Tax Cuts and Jobs Act, commonly referred to as the TCJA. Most of the TCJA provisions that impact individuals, estates, and pass-through entities will expire or phase out in 2025, an event being referred to as the Great Tax Sunset. However, the TCJA’s biggest change impacting the taxation of C corporations, reducing the corporate tax rate from 35% to 21%, will not sunset. This means that while the highest individual income tax bracket will increase from 37% to 39.6% after 2025, the C corporation tax rate will not change and will remain at 21%. 

The TCJA also introduced the Qualified Business Income deduction, or QBI deduction. This allowed taxpayers to deduct up to 20% of business income from flow-through entities, such as businesses that appear on Schedule C, as well as S corporations and partnerships. The QBI deduction was originally intended to help businesses that were not C corporations compete with the new 21% tax rate for C corporations. The QBI deduction is currently scheduled to be eliminated after 2025. 

While it is impossible to predict what tax legislation will be implemented by a future Congress and POTUS, the sunsetting of QBI, the increase of the highest marginal tax rate for individuals, and the continuation of C corporation tax rate makes choosing the appropriate entity for a small business owner less straightforward than it was before 2017. 

To illustrate, imagine five taxpayers, each owning an equal share of a C corporation doing business in 2017, before the implementation of the TCJA’s modified tax rates. The C corporation has a net income of $1,000,000 and pays 35% income tax, or $350,000. For the sake of simplicity, all remaining income is distributed to the five taxpayers and none of the distribution is considered compensation. The taxpayers pay tax at the highest long-term capital gains tax rate plus net investment income tax on the dividend, or 23.8%. The tax paid by all taxpayers in this example is $504,700, for an overall effective tax rate of 50.47%. 

Compare this to the taxation of an LLC owned and operated by five partners with equal ownership. The LLC has a net income of $1,000,000, pays no income tax, and passes the income to its five partners. For the sake of simplicity, all remaining income distributed to the five partners is subject to the highest marginal individual tax rate of 39.6%, and none of the income is considered compensation. The five partners pay a total of $396,000 in tax for an overall effective tax rate of 39.6%. The basic illustration demonstrates why C corporations were seldom used as an entity of choice by small business owners since one level of taxation is considerably lower than two levels of taxation for C corporations.  

After the TCJA, C corporation taxation became more appealing as the tax rate was lowered from 35% to 21%. Using the same example above, let’s imagine that the same C corporation doing business in 2018 has a net income of $1,000,000 and pays 21% income tax, or $210,000. The remaining net income is distributed to shareholders who then pay tax at the highest long-term capital gains tax rate plus net investment income tax on the dividend, or 23.8%. The total tax paid by all taxpayers in this example is now $398,020, for an overall effective tax rate of 39.8%. That’s a huge improvement for the two levels of tax for C corporations. 

Pass-through owners also had a new advantage under the TCJA with the QBI deduction. As a comparison, the same LLC with a net income of $1,000,000 passes its income to its five partners. Each of the five partners can fully utilize the 20% QBI deduction, which reduces the taxable income from $1,000,000 to $800,000 for all five partners. The five partners pay $296,000 in tax at the highest marginal tax rate for individuals, now lowered to 37%. While C corporation taxation became more appealing, it was still not as appealing as a pass-through entity where individual taxpayers could take a QBI deduction.

However, this is about to change. That same C corporation doing business in 2026, after the Great Tax Sunset will continue to have its $1,000,000 of net income taxed at 21%. Nothing else changes for C corporations in this example, and the total tax paid by all taxpayers is again $398,020, for an overall effective tax rate of 39.8% 

The five partners of that same LLC can no longer take advantage of the QBI deduction, which was eliminated in the Great Tax Sunset. Furthermore, the highest marginal tax rate for individuals increased from 37% to 39.6%. The five partners now pay $396,000 in tax for an overall effective tax rate of 39.6%. Suddenly, pass-throughs no longer have the dominant tax advantage they had a few years before. 

Lastly, one intriguing side-effect of the corporate tax rate reduction was the renewed interest in the Qualified Small Business Stock exclusion, also referred to as the QSBS exclusion. This tax benefit allows C corporation owners to sell stock without incurring capital gains tax after a statutory period. This additional benefit may tip the balance in favor of C corporations for many small business owners. 

Does this mean small business owners should run out and check the box of their LLCs to be treated as C corporations? It is impossible to know what the future holds for tax law changes. While it is not so difficult from a tax perspective to move an LLC treated as a partnership to an LLC treated as a C corporation, it is far more difficult to go back the other way. Nevertheless, if nothing else changes, the analysis of entity choice for small business owners is far more interesting. The Great Tax Sunset will play a significant role in tax planning for several years to come.

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Feb 7th

Are AI and Wealth Management Compatible?

There’s no denying that artificial intelligence is developing quickly—at warp speed, even. In fact, in March 2023, some of the biggest names in technology—including Elon Musk and other professors, researchers, and business leaders—signed a letter asking for a pause for artificial intelligence labs training AI systems out of concern for the dangers such technology may present. Additionally, the United States and the United Kingdom have held high-level summits about AI safety in 2023. 

Even with such concerns about what a proliferation of AI could mean for society as a whole when it comes to AI and wealth management, there’s a place for using tools based on technology. “When you’re looking for a statistical or high-level outcome or solution, it’s helpful,” says Whittier Trust SVP and Senior Portfolio Manager, Teague Sanders, who notes that quantum computers, such as the one built by Google, are approximately 158 million times more powerful than the supercomputers used today. That means that answers—from researching companies that may present investment opportunities to pulling numbers to analyze industry trends—can be at our fingertips more quickly than ever. Savvy client services advisors can leverage such technologies to inform expedient answers, recommendations, and reporting.

Fact-checking: a vital component for the use of AI in wealth management

Large language models (LLMs) are deep databases pre-trained on mind-boggling amounts of information. That’s why ChatGPT Bard, LLaMA, PaLM2, and many more have become popular tools for asking a question and waiting for an (almost instant) answer. While Sanders says that Whittier Trust has subscriptions to some LLMs because they can be useful for summarizing things and finding links and patterns, Whittier Trust team members always thoroughly double-check the results to verify the veracity of the information. Case in point: “There can be ‘hallucinations’ within a dataset,” Sanders explains. “If you ask an AI-driven LLM such as Bard a question like, ‘What was the revenue generated by X business?” and it gives you an answer you don’t think is right, it will re-generate a different response. You have to make sure that, when an LLM does a calculation, it’s analyzing the right thing and using authentic data.” Again, it comes down to focused human oversight. 

AI and LLMs can also be useful for shaking up the thinking on a particular topic, sparking creativity and brainstorming. “If we have a client situation or an investment we’re considering, we might throw six or seven different prompts about a topic into one of the LLMs and just see what comes out,” Sanders explains. “That can be a catalyst for creative thought.” For example, if the team is thinking about an investment, an AI-driven tool can help. “If we’re looking at Mr. Carwash, we might ask the LLM to show us the entire landscape of car washes in the United States or the last six quarters of earnings of car washes in the American Southwest.” Such queries can help frame issues the team is considering, but it won’t be the deciding factor.

Why wealth management AI won’t replace a human touch

Artificial intelligence (AI) is everywhere, it seems, from predictive text in our Google searches and chatbots in customer service to facial recognition when we check in for a flight at the airport. Even though those things and more have become commonplace, there are some areas of our lives where such technology isn’t compatible: namely, the expansive use of AI in wealth management. “Wealth management, specifically, our style of wealth management simply doesn't lend itself to leaning heavily on AI,” says Sanders. “Even with all the advantages and efficiencies AI can bring, when you look at our clients and what we do for them, it’s really about the integration of our complete service offering; specifically our five pillars of expertise [family office, investments, philanthropy, real estate, trust services]. The comprehensive service these areas of expertise bring allows us to provide the personalized and compassionate approach that makes us successful, unique, and powerful for our clients.” The use of AI in wealth management can be valuable in some instances, while simultaneously complementing human expertise and intelligence for even greater results. 

One of the primary ways Whittier Trust serves clients and sets itself apart from other firms is its highly personalized approach to serving the whole person or family. “An AI-driven solution does not exhibit empathy right now, it does not get to know someone’s hopes for family continuity or heart-felt goals for making a difference in a philanthropic endeavor. A computer doesn’t hold someone’s hand as they’re going through a difficult season,” Sanders says. “Those things require a lot of human touch because there's still a lot of emotional involvement when you're trying to come up with a customized, tailored solution for each very complex family.”

 

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Feb 1st

The Magnificent 7 and the Imperfect Index

Despite domestic and geopolitical uncertainty, equity portfolios performed quite well in 2023 as measured by the S&P 500 Index. The market return was largely driven by the seven largest constituents of the S&P 500, also known as the Magnificent Seven. The Magnificent Seven includes: Apple, Microsoft, Alphabet, Amazon, Meta Platforms, Nvidia, and Tesla. These companies account for over twenty-eight percent of the S&P 500 Index and collectively more than doubled in 2023.  The spectacular returns concentrated in a few names left the average stock returning less than half of the S&P 500 Index overall.  The Magnificent Seven masked the underlying share price weakness of most stocks in the S&P 500 Index.  The concentration of returns and weightings raises the question of whether the S&P 500 Index should be dissected for opportunities and imperfections.

S&P 500 Index

This leads us to our next point in which we discuss the construction of the S&P 500 Index and lessons to learn from the evolution of the index.  The S&P 500 Index is often referred to as a “passive index,” meaning there is not an active manager changing the constituents of the Index on a regular basis.  It may come as a surprise that in any given year there are several changes to the S&P 500 Index.  As companies are acquired, merged, or face challenging times, they must be replaced in the index so there remain exactly 500 companies.  Over the past decade a shocking 189 companies were added to the S&P 500 Index! 

Before we delve into the implications of the 189 additions to the “passive” S&P 500 Index, we should highlight that over 28% of the S&P 500 Index is now in just seven companies, aka the Magnificent Seven.  These seven companies are the largest because of their extraordinary performance over the past 15 years.  The magnificent seven returns (measured in multiples) since the market peak before the Great Financial Crisis (12/31/2007) through the most recent quarter (12/31/2023) are as follows:

  • Apple 32.1x
  • Google (Alphabet) 8.1x
  • Nvidia 63.4x
  • Amazon 32.8x
  • Tesla 156.3x (since IPO in 2010) (1.1x since S&P 500 Index inclusion in 2020)
  • Microsoft 14.5x
  • Meta 12.0x (since IPO in 2012) (6.5x since S&P 500 Index inclusion in 2013)

Usually, we talk about stocks and bonds in percentage terms reserving double digit multiples on investment for only the best Venture Capital hits.  In this case, writing about Apple stock’s 3,113% return (32.1x multiple) if purchased at one of the worst times in history (right before the financial crisis) through today seems absurd.  Thus, we can simply say that an investment in 2007 would today be worth 32.1x as much including dividends (equally absurd you say!).  This is a great reminder of how favorable investing in high quality companies can be over long periods of time.  (Imagine a game table in Las Vegas that gave you a greater than 50% chance of winning each day, a greater than 65% chance of winning over one year and a nearly 100% chance of winning over multiple decades.  You would want to play that game and only that game for as long as you possibly could.)  While the magnificent seven have all returned multiples of investment since 2007, the S&P 500 Index has also returned a handsome 4.5x (347%) return over that time frame. 

The 189 additions to the S&P 500 Index

Now back to the 189 companies that were added to the S&P 500 Index in the last decade. The 189 additions have been selected by a committee known as the S&P Dow Jones Indices Index Committee (within S&P Global).1  These additions have to be disclosed before they are added to the index.  Thus, the average of those 189 stocks saw a bump immediately before they were added to the S&P 500 Index.  On average, those 189 stocks returned 11% over the three month period prior to the announcement date.  As more and more investors allocate a portion of their portfolio to index funds, the newly added stocks see more and more demand for their shares ahead of being included in the index.  According to the Investment Company Institute, midway through 2023 there were over $6.3 trillion dollars invested in S&P 500 Index funds in the United States.  As a company is added to the S&P 500 Index there is significant buying power behind that addition.  

Magnificent Seven

The Magnificent Seven stock price appreciation in 2023 reflects their strong fundamentals.  These seven companies generally have high margins, low input costs, strong balance sheets, and no unionized labor.  Conveniently avoiding the major pitfalls of 2023.  Perhaps more importantly, the strong performance from the top seven companies and the outsized weightings of those companies, obfuscates the weakness of the other 493 stocks that are on average still down from the beginning of 2022.  After two years of negative returns for the majority of the stocks in the index, perhaps there are some bargains out there for long-term investors.

Conclusion

We can draw a number of conclusions from the above analysis:  

  1. The S&P 500 Index returns over the next few years will be heavily dependent on the Magnificent Seven. Fortunately, the majority of the Magnificent Seven have low debt levels, high profit margins, low labor expense relative to revenue, and are cash generative (higher interest rates may boost earnings).  
  2. The imperfect index will continue to evolve and change despite the passive moniker.  
  3. Being attentive to potential index inclusions will be ever more important as the size of assets invested in the index grows faster than the index itself.
  4. 2023 market returns have been skewed by the Magnificent Seven leaving potential bargains beneath the surface.  
  5. Finally, investing in high quality companies may pose risks in the near term, but continues to look favorable over extended periods of time.

 

Endnotes:

      Source:  S&P Global
      Source:  Bloomberg Intelligence
      Source:  Investment Company Institute

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Jan 30th

Whittier Trust Welcomes Gregg Millward as Vice President, Client Advisor

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Whittier Trust, the oldest multi-family office headquartered on the West Coast, is pleased to announce the recent hiring of Gregg Millward as Vice President, Client Advisor in its Pasadena office. In this role, Gregg provides a comprehensive range of wealth management, family office and trust services to affluent individuals and families, working closely with clients and their advisors to tailor strategies that meet their unique needs. He will be pivotal in fostering multi-generational relationships in the service of stewarding and growing family wealth. 

"We welcome Gregg Millward to the Whittier Trust family with open arms," said Peter Zarifes, Managing Director, Director of Wealth Management operating out of Whittier Trust’s Pasadena Office. "His years of experience in philanthropic giving is bolstered by a clear dedication to fostering relationships across generations. This aligns perfectly with our commitment to providing unparalleled service and highly personalized wealth management."

Before joining Whittier Trust in 2023, Gregg spent more than 15 years at the University of Southern California. He most recently served as Senior Associate Director at The Center of Philanthropy & Public Policy, where he collaborated with philanthropic families, individuals and corporations to optimize the approach and maximize the impact in their charitable giving.

In expressing his excitement about joining Whittier Trust, Gregg Millward stated, "I'm genuinely honored to be joining Whittier Trust. The firm's commitment to client-centric service is well known, and its implementation of philanthropy and family-office services as tools to bring families together strongly resonates with my values. I'm looking forward to contributing to Whittier Trust's ongoing success and serving our clients with the utmost level of care and professionalism.” 

Gregg holds a Master's in Educational Leadership from the University of Southern California and a Bachelor of Science from Kutztown University of Pennsylvania. He also possesses an executive certificate from the Sports Management Institute. When not in the office, Gregg has demonstrated his commitment to community service by serving on the Swim With Mike Foundation board and contributing to various nonprofits.

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