Insights Archives

Oct 8th

Plan to Give

Charitable giving strategies in the wake of the “One Big Beautiful Bill.”

The One Big Beautiful Bill (“OBBB”) significantly changed the tax deductibility of charitable contributions in 2026 and onward by introducing two additional limitations for filers who itemize their deductions.

The first limitation sets a 0.5% adjusted gross income (“AGI”) floor on deductible contributions. For example, if a filer's 2026 AGI is $500,000, the first 0.5%, or $2,500, of charitable contributions will be disallowed. In certain circumstances, the disallowed amount may be eligible to be carried forward and applied to future tax years.

The second limitation decreases the tax benefit of all itemized deductions for filers in the highest marginal tax bracket of 37%, including charitable contributions, as adjusted by the first limitation described above. In 2026, married filing joint filers reach this top tax bracket with $768,700 of taxable income.

This second and more significant limitation curtails the tax benefit of deductions for filers in the 37% bracket to 35%. Filers who donate an amount equal to their highest taxed income may unpleasantly discover they still owe residual tax. In addition, this limitation creates a permanent disallowance and provides no mechanism for carryforwards to future tax years.

In the wake of the OBBB, planning strategies for charitable giving have become especially important in year-end planning. Here, we outline strategies and considerations that you should evaluate as you aim to enhance your philanthropic impact.

Planning Strategies to Consider

Accelerate giving into 2025: By making larger charitable contributions in 2025, you might be able to maximize the full value of deductions before the OBBB takes effect.
Combine several years of giving: Bunching donations into one year can help you clear the new deduction thresholds and maximize tax benefits.
Structure income carefully: Planning the timing of income and deductions can help you avoid the highest tax brackets in years when you make significant charitable gifts.
Use Donor-Advised-Funds ("DAFs"): Establishing or contributing to a DAF may allow you to lock in larger tax deductions in 2025 while maintaining flexibility to recommend grants to charities in future years. Whittier Trust offers these services if you need help.
Give more strategically: Consider donating appreciated stock or exploring leveraged giving strategies that boost the total impact of your donations.
Consider giving from a trust: Certain trust structures can offer tax benefits by filing separate tax returns, which may help avoid some of the new limitations on charitable deductions introduced by the OBBB.
Private foundations: If you already have a private foundation, special annual elections might let you increase the amount of your tax-deductible contributions.
Supporting your private colleges and universities early: If you are a donor to these institutions, accelerating gifts in 2025 might help them avoid significantly higher excise taxes on their endowment investment income. Reach out to these institutions to confirm if the OBBB changes affect them.

When Acceleration May Not Be Best

Accelerating your giving isn’t always the most tax-efficient move. Consider:

Unused prior deductions: If you already have unused charitable deductions from prior years, making large gifts now could cause older deductions to expire.
Your effective tax rate: Waiting to make charitable gifts until a year when your effective (not marginal) tax rate is higher may yield better savings, despite the new OBBB limitations.
Planning with your longevity in mind: Unused contributions may expire upon your or your spouse’s passing, so consider synchronizing your giving with your income to ensure no tax-deductible contribution goes wasted.
Making giving an integral part of administering your estate: The OBBB limitations generally do not apply to charitable giving done when administering your taxable estate. Consider developing a more holistic plan for giving after you are gone.

The Big Picture

Every client’s situation is unique. Your income, estate plan, charitable goals, and timing all influence the best strategy, whether that means maximizing tax efficiency or fulfilling your philanthropic vision, regardless of law changes.

Why You Should Plan Early

Charitable planning works best when it’s done early. This allows enough time for you and your advisors to model different scenarios, make decisions, and implement them smoothly—without the stress of year-end deadlines. Starting early helps ensure your gifts are processed and counted for the tax year without last-minute complications.

Next Steps

If charitable giving is a priority for you in 2025, let’s start the conversation now. Whittier Trust can help develop a plan that balances your philanthropic goals with the upcoming changes in the tax law.

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.

An image of a silver and gold ring intertwined together.

Sep 30th

The Wealth Equation: Balancing Money and Stress

Don’t let assets be a liability that strains your family.

Ultra-high-net-worth (UHNW) families have no shortage of options when it comes to who manages their investments. They can engage with a private bank, hire a financial advisor, enlist a multi-family office, or start their own single-family office with dedicated staff. The challenge is finding a lifestyle-compatible solution that optimizes not only immediate returns but also future benefits for generations to come.

“You want a partner that turns wealth into an asset instead of a liability,” says Jay Karpen, a Vice President and Portfolio Manager with Whittier Trust. “That means managing wealth in a way that brings family together rather than driving it apart, that brings peace of mind rather than stress, and that enhances your values rather than detracting from them.” At Whittier Trust, our multi-family office approach is designed to create a meaningful difference in all aspects of your wealth, family, and legacy, paving the path for whatever endeavors you, your children, or grandchildren choose to pursue.

The Multi-Family Office Model

Multi-family offices employ professionals with expertise in investments, philanthropy, administrative services, and, in some instances, trusts and estates. These firms are set up to support the family and subsequent generations, helping preserve multi-generational wealth and family values.

“You have to be careful, though,” Karpen advises, “because many multi-family offices are simply financial advisors without the resources or experience to provide high-touch service or the ability to handle complex estates and taxes. They might miss important tax-saving opportunities through thoughtful estate planning or the advantages of asset location, making sure the right types of assets are in the correct accounts.”

Whittier Trust is the best of all worlds: a multi-family office that offers a single-family office experience with the resources of a large private bank or financial advisor as well as trust and estate services. Each client has their own team, including a portfolio manager, investment analyst, client advisor associate, and a client advisor, who, on average, has only 30 client relationships. “At competitors’ offices, the client advisors are typically juggling hundreds of clients,” Karpen says. “You’re not going to get a high-end experience with a ratio like that.”

The Whittier team ensures each client receives a customized solution to meet their unique circumstances, as well as the time and attention they deserve so that their wealth never becomes a burden. “A client recently asked us to evaluate a private technology investment opportunity,” Karpen says. “My team collaborated with our technology analysts, private market experts, and industry professionals in our network to underwrite the company and consider how this venture would fit within the goals and objectives of the client's portfolio. We’ve all been pleased with the outcome, which is aligned with the client’s portfolio goals.”

Whittier’s ideal size is a strategic advantage, allowing us to pool resources and best practices across the hundreds of families we work with, while maintaining close personal relationships with them. “We can, for example, leverage the firm's relationships to identify attractive investment opportunities or obtain institutional lending rates for loans,” Karpen explains. “Frequently, we work with longstanding lenders to structure a deal for a client when everyone else is either too expensive or too restrictive.”

The Single-Family Office Alternative

UHNW families often choose to open their own single-family office because it offers prestige, control, and customization. But setting up a custom office can be a double-edged sword, introducing significant complexity and expense. The family must lease office space and manage staff, yet may still need to outsource certain functions beyond the scope of the in-house employees. It’s an excellent solution for anyone who enjoys being at the center of a hub of activity, with near-daily decision-making, but not for someone looking to step back from work and stress.

The Private Bank Option

Partnering with a private bank alleviates any worries about hiring your own financial advisors and service providers, and banks can also sometimes help with specific issues such as taxes and real estate. Unfortunately, private banks are often conflicted, pitching proprietary products as solutions, which typically carry embedded fees and unnecessary complications. Additionally, since they are a bank, they are subject to strict bank regulations and corporate objectives that might result in a degradation of service (e.g., public banks trying to meet earnings) and are susceptible to bank runs, as we saw with First Republic Bank and Silicon Valley Bank in 2023.

A multi-family office combines the advantages of a single-family office and a private bank or financial advisor, keeping the control in the client’s hands without the day-to-day responsibilities that impede their true passions, such as travel, philanthropy, and family. Whittier Trust, the preeminent West Coast multi-family office, delivers best-in-class services for UHNW families who are looking for that ideal balance for today, tomorrow, and beyond.

If you’re ready to explore Whittier Trust’s family office services, 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.

Sep 4th

Key Observations and Whittier Trust Insights on the “One Big Beautiful Bill”

On July 4, 2025, President Trump signed into law H.R. 1, otherwise known as the One Big Beautiful Bill (“OBBB”), which made permanent many provisions of the 2017 Tax Cuts and Jobs Act (“TCJA”), accelerated the elimination of green energy tax credits introduced as part of President Biden’s Inflation Reduction Act, while delivering targeted tax relief to seniors and working class taxpayers. The bill represents the third significant piece of tax legislation implemented via budget reconciliation in the last four years (the other two being the American Rescue Plan of 2021 and the Inflation Reduction Act of 2022). The original House of Representatives bill was passed on May 22, 2025. The Senate amended bill was approved on July 1, 2025, reconciled on July 3, 2025, and on the President’s desk by his self-imposed deadline of Independence Day.

The following summarizes key provisions that impact high-net-worth individuals (“HNWIs”) and their closely held businesses. Please take note of each provision and its applicability date, as many changes impact tax year 2025 and years prior. For the sake of simplicity, we will assume all taxable years end on December 31 (i.e., are a calendar taxable year).

Tax Rate Schedules Are Now Permanent

Effective date: tax year 2026 onward

The temporary tax rates established by the TCJA, which were set to expire after the 2025 tax year, are now permanent. Tax rates are now set at 10, 12, 22, 24, 32, 35, and 37 percent.

Whittier insight: Permanent tax rates are a welcome change and provide more predictability with future cash flow planning.

Personal and Dependency Exemptions Eliminated

Effective date: tax year 2026 onward

The temporary suspension of personal and dependency exemptions under the TCJA has become permanent.

Whittier insight: Filers should still collect information regarding dependents, as this information is required to claim various other federal tax credits, correctly report taxable gifting, or assist with other state income tax filings and obligations.

A Temporary State and Local Tax (“SALT”) Deduction Expansion (Subject to Limitations)

Effective date: tax years 2025 through 2029

The SALT deduction has increased from $10,000 per filer ($5,000 for married filing separate (“MFS”) filers) to $40,000 per filer ($20,000 for MFS filers). However, the deduction is reduced by 30% of the filer’s modified adjusted gross income (“MAGI”), which is more than a threshold amount. For 2025, the threshold amount is set at a MAGI of $500,000 ($250,000 if MFS). The maximum allowable deduction and the MAGI threshold increase by 1% annually through 2029. (e.g., in 2026, the SALT cap will be $40,400 ($20,200 if MFS), and the threshold will be $505,000 ($252,500 if MFS). In tax year 2030, the cap will reset back to the TCJA-imposed $10,000 ($5,000 if MFS) limit.

Whittier insight: While this delivers a big win for filers earning up to $500,000 ($250,000 if MFS) who live in states with high state income and/or property taxes, the tax benefits will not change for filers whose MAGI leads to a complete phase out (i.e., income of $600,000 or $300,000 if MFS). Therefore, the pass-through entity tax (“PTET”) regimes (discussed later) will remain the primary method of generating federal tax deductions via flow-through business entities’ pre-payments of state income taxes.

Passthrough Entity Taxes (“PTETs”) Get the Green Light

Effective date: today and ongoing

The OBBB did not modify the availability of PTETs to bypass the federally imposed SALT deduction cap. Previous draft versions of the OBBB suggested changes that would have limited the amount or prohibited those eligible to benefit from such deductions. None of these provisions made their way into the final bill.

Whittier insight: Many states continue to offer workarounds that help business owners deduct state taxes at the federal level, and we expect the number of states adopting these methods to increase. These rules vary widely by state, so reviewing how they apply where filers live or operate is essential.

Charitable Contributions Have Changed

Effective date: tax year 2026 onward

For individual filers who itemize their deductions, only charitable contributions of more than 0.5% of the filer’s AGI will be deductible (subject to all the pre-existing charitable contribution limitations). However, this limitation will not apply to charitable contribution carryforwards from tax years preceding the effective date of the OBBB (i.e., tax years 2025 and prior). Furthermore, the increased contribution limitation from 50% to 60% of AGI for cash gifts to public charities, as modified by the TCJA, is permanent.

Whittier insight: Filers planning significant charitable giving may wish to accelerate donations to 2025, before the 0.5% AGI floor takes effect in 2026. However, filers should evaluate their specific tax situations. If they have made charitable contributions in past years that haven’t been fully deducted yet and have carried over, it may be beneficial to utilize those deductions before they expire. If their income composition shifts more towards ordinary (i.e., 37% rate) income versus capital gain (i.e., 20% rate) income in 2026 and onward, charitable contributions might make more sense then. Consider not only the amount, but the character of income.

The Qualified Business Income Deduction Gets a Refresh

Effective date: tax years 2026 onward

The TCJA created IRC Sec. 199A, colloquially known as the “qualified business income deduction”, which allowed individuals and trusts, depending on the amount and composition of their taxable income, to take a deduction of up to 20% of their qualified business income (“QBI”), real estate investment trust (“REIT”) dividends, and publicly traded partnership (“PTP”) income, subject to specific employee wage, capital investment, and business type limitations. In general, these businesses needed to be based in the United States.

The deduction is now permanent, with an increased phase-out range for middle-class filers who wish to take advantage of this benefit even if they participate in certain specified service trades or businesses (“SSTBs”) or otherwise do not pass the employee wage or capital investment limitations.

Whittier insight: The 21% corporate and 37% top marginal individual and trust tax rates enacted by the TCJA were no accident. They were set to equalize after-tax returns for investors in either structure. A corporation would face a 21% tax on earnings, leaving a residual 79%, which, if distributed as a qualified taxable dividend to its shareholder, would be taxed at 20%. The shareholder would end up with 63.2% (80% of 79%) as the residual. The owner of a pass-through entity would face a single layer of tax at 37%, leaving them with a residual of 63%. Congress enacted the 199A deduction to incentivize the formation and utilization of pass-through entities by making the effective tax rate on such income 29.6% (80% of 37%).

This deduction gives business owners and investors in pass-through entities (like LLCs, partnerships, and S corporations) a vital tax advantage. By making it permanent, the law helps ensure these businesses remain competitive with corporations.

A Welcome Liberalization of the Casualty Loss Rules (Giving the States More Power)

Effective date: tax year 2026 onward

Under the OBBB, if a filer’s home or property suffers damage in a disaster declared by their state government, not just the federal government, they can qualify for a casualty loss deduction. This change provides broader relief options for those impacted by wildfires, hurricanes, or other significant events.

Whittier insight: The increasing frequency and damage caused by natural disasters have necessitated an expedited process for making casualty loss deductions available. The OBBB provides much-needed relief to filers across the country facing these challenges.

Note that this does not allow a state official to defer the due dates for federal tax payments. That power continues to rest with the IRS.

The Deduction for Investment Management, Tax Preparation, Unreimbursed Employee and Hobby Expenses Is Eliminated

Effective date: tax year 2026

The temporary provisions eliminating the deductibility of these expenses are now permanent.

Whittier insight: Certain states (such as California) still permit deducting these items (subject to their existing 2% of AGI limitations), so filers should continue tracking them.

Itemized Deductions are no Longer Dollar-For-Dollar

Effective date: tax year 2026 onward

For filers in the highest (i.e., 37%) income tax bracket, itemized deductions are effectively capped at a 35% tax rate. For filers paying tax on capital gains at the highest (i.e., 20%) tax bracket, itemized deductions are effectively capped at a 19% rate. The overall itemized deduction limitation is calculated after the modified charitable contribution limitation (discussed earlier).

Whittier insight: While filers can still deduct certain expenses like charitable contributions, the OBBB slightly limits how much these deductions reduce their taxes if they are in the top tax bracket. This means that even if they donate an amount equal to their highest taxed income, they may still pay residual tax. This limitation may reduce the marginal benefit of deductions at the highest income thresholds and should be modeled in year-end planning scenarios.

Trump Accounts – Complex Rules, Long-Term Benefits

Effective date: July 4, 2026, and onward

In addition to IRAs, Section 529 plans, & ABLE accounts, the OBBB introduced an additional tax-savings vehicle, called “Trump accounts”. Trump accounts will generally be treated as tax-deferred (similar to a traditional IRA). Subject to specific requirements, these accounts will typically be available for individuals who have not yet reached 18 years old before the end of the tax year. Trump accounts may remain in existence after their beneficiary turns 18, and contributions can continue to be made, subject to the typical restrictions found in IRAs. After a beneficiary turns 18, Trump accounts may invest in assets besides collectibles, life insurance, and stock in an S corporation (similar to IRAs). Before that, they must generally invest in low-cost, unlevered index/mutual funds, primarily invested in US companies.

Trump accounts will only begin accepting contributions on July 4, 2026, and contributions can only be made in tax years preceding the tax year in which the beneficiary turns 18. Annual contribution limits apply (similar to IRAs) to Trump accounts, and distributions are only allowed on or after January 1 of the year the beneficiary turns 18. Upon maturity, distributions from Trump accounts generally follow the same rules as IRAs, in that they are partially taxable as ordinary income in the year of receipt, and non-qualifying early distributions may be subject to a 10% penalty.

The annual contribution limit is $5,000/year and adjusted for inflation after 2027. There is no exclusion from a filer’s gross income or income tax deduction for contributions to Trump accounts. Contributions to Trump accounts do not reduce the contribution limit to any other IRA plan besides a Trump account.

A one-time payment of $1,000 will be made to any Trump account established for eligible beneficiaries born in 2025 through 2029. There is no income limit for those who can receive the $1,000.

Whittier insight: Trump accounts represent another tool for individuals, families, and employers to start saving and investing for future generations, particularly because they do not have an earned income requirement. Unlike 529 accounts, Trump accounts do not appear to have any expense restrictions (although distributions would still be partially taxable); however, they also cannot be “super funded” like a 529 account with five years of contributions based on the contribution year's annual gift exclusion limit.

Other finer details apply, such as the manner and mechanisms of employer-provided contributions, or the treatment of Trump accounts in the case of a beneficiary's death. But in general, Trump accounts introduce a new vehicle for advisors to help filers accumulate tax-deferred wealth for the next generation.

Bonus Depreciation Comes Back

Effective date: January 20, 2025, onwards

Under the TCJA, bonus depreciation permitted a 100% deduction for qualified property generally placed in service between tax years 2018 and 2022. In 2023, this 100% deduction began phasing down by 20% per year and was set to expire in tax year 2027. The OBBB permanently extends the 100% depreciation deduction for qualified property acquired and placed in service after January 19, 2025. If desired, filers can utilize the pre-January 20, 2025, depreciation law for the 2025 tax year.

Whittier insight: The ability to immediately deduct large equipment or property purchases is back—but only for items placed in service on January 20, 2025, or later. When taking advantage of immediate expensing, consider other loss limitation rules, such as net operating, passive activity or excess business losses.

Research and Experimental Deductions Are Back (and Retroactive if They Qualify and Want to Be)

Effective date: tax year 2022 through 2024, if eligible; otherwise, tax year 2025 onward

Under the TCJA, research and experimental expenses were fully deductible in the year they were incurred, regardless of location. Starting in tax year 2022, such expenditures were required to be deducted ratably over 5 years (for domestic costs) and 15 years (for foreign costs).

The OBBB now permits a full deduction for domestic research and experimental expenses starting in tax year 2025. Foreign expenses must still be deducted ratably over 15 years. Filers may also elect to fully deduct any outstanding amounts incurred in tax years 2022-2024 that have not yet been deducted. This acceleration can occur in tax year 2025, or ratably over 2025 and 2026. Certain eligible small businesses (generally defined as those with average annual gross receipts of $31 million or less) may elect to retroactively apply immediate deduction and amend tax years 2022-2024, if desired. Such an election must be filed before July 4, 2026.

Whittier insight: During the passage of the TCJA, Congress drafted IRC Section 174 to limit research and experimental deductions in tax years 2022 onward to lower the bill’s ultimate price tag. While there was general bipartisan support for maintaining full expensing, no legislative remedy was enacted. The OBBB fixes that.

If filers have incurred domestic R&D costs, they may be able to accelerate those deductions, improving their current year tax posture. This change is beneficial for growing companies that have yet to profit.

Expanded Interest Deductibility Restores Debt Planning Appeal

Effective date: tax year 2025 onward

Before the OBBB, starting in tax year 2022, businesses were generally only permitted to deduct business interest expense so long as it did not exceed 30% of their earnings before interest and taxes (“EBIT”). Starting in tax year 2025, businesses can now deduct business interest expense so long as it does not exceed 30% of their earnings before interest, taxes, depreciation, amortization, and depletion (“EBITDA”). This change is also permanent.

Whittier insight: Allowing the add back to EBIT for depreciation, amortization, and depletion deductions, in combination with the bonus depreciation provisions, represents a notable win for filers in capital-intensive businesses that utilize a high degree of debt.

Inflation Reduction Act, We Hardly Knew Ye

Effective date: July 4, 2025, and onwards

A sizable portion of the OBBB’s revenue increases came from curtailing green energy tax credits introduced in the previous administration's Inflation Reduction Act. Though there are too many credits to list in this summary, the OBBB made changes that accelerated the winddown, restricted transferability, and limited the population of filers eligible to claim said credits. Solar, wind, and electric vehicle credits were the primary targets for curtailment, while others, such as nuclear and geothermal, were left relatively intact.

Whittier insight: Originally thought to be a straightforward political rebuke of the Inflation Reduction Act, the repeal of these credits became a delicate negotiating issue, as significant amounts of working capital and jobs reside or will reside in states with legislators who voted in favor of the bill.

Investing in Small Businesses Taxed as C Corporations Is More Attractive Now Than Ever

Effective date: tax years 2026 onward

The 100% qualified small business stock (“QSBS”) gain exclusion has been expanded. For qualifying corporate stock acquired after July 4, 2025, a noncorporate filer is permitted to exclude 50% of the capital gain for stock held for three years or more, 75% for stock held for four years or more, and 100% for stock held for five years or more. The previous QSBS rules required a five-year hold period.

The maximum amount of excludible gain is increased from the greater of $10m or 10 times the filer’s basis to the greater of $15m or 10 times the filer’s basis and is adjusted for inflation thereafter. Furthermore, the corporation's gross asset ceiling has been raised from $50m to $75m and adjusted for inflation. There are no changes to IRC Section 1045, which permits tax-deferred rollovers of otherwise qualifying small business stock (but for the qualifying holding period) into another qualifying small business stock investment.

Whittier insight: Because of these changes, we anticipate an increase in individuals seeking investments in C corporations. Once generally viewed as an obscure provision of the Internal Revenue Code, relegated to venture capitalists and business founders, appears to be becoming more mainstream.

Expanding and Making Permanent the Estate and Gift Tax Applicable Exclusion (Including the Generation-Skipping Tax)

Effective date: tax years 2026 onward

The 2026 estate and gift tax applicable exclusion is set to $15m per person ($30m per couple) and adjusted for inflation thereafter. Absent modification, the current exclusion was set to halve in tax year 2026. The generation skipping tax (“GST”) has also been expanded to the same $15m per person ($30m per couple) limit, allowing such incremental transfers also to be made tax-free to skip persons, typically defined as individuals or beneficiaries who are two or more generations removed from the transferor.

Whittier insight: The 2025 maximum estate and gift tax applicable exclusion was set to $13.99m per person ($27.98m per couple). With the expansion to $15m per person ($30m per couple) starting in 2026, filers who have previously maximized the utilization of the lifetime exclusion can now benefit from an additional ~$1m per person (~$2m per couple) of gifting and/or transfers out of their taxable estates.

Summary

These are just the key changes impacting HNWIs. Many more remain undiscussed or require future investigation (e.g., Opportunity Zones, treatment of gambling losses, and various international provisions).

In general, the OBBB aims to restore the tax landscape back to the TCJA and make it permanent. The OBBB represents a growing trend in tax legislation. What was once a bipartisan process with cumbersome processes and procedures has increasingly become a partisan tool for enacting sweeping fiscal change, passed by razor-thin margins.

We note that the government’s fiscal year resets on October 1, 2025, and Congress may utilize the budget reconciliation process again in the subsequent fiscal year. The potential for another reconciliation bill before the year ends remains within the realm of possibility.

Though not specifically covered here, state and local tax agencies may also adopt or decouple from some or all of the changes in the OBBB, necessitating thorough consideration before modifying any tax planning or arriving at any conclusions.

Call to Action

Taxes can be complex, confusing, and ever-changing. At Whittier Trust, we focus on Washington, ensuring your tax plan is tailored to today’s realities. We can help you take a step back and holistically examine how taxes impact your life goals and objectives and plan for the future accordingly.

If you’re ready to explore Whittier Trust’s family office services, visit our contact page to start a conversation with a Whittier Trust advisor today.

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

Aug 28th

Beyond Basic Security

Cyber criminals may be targeting you—here are six ways to fight back.

In today's interconnected world, protecting your digital information is vital. Cyber threats are constantly evolving, so staying informed and proactive is the best defense. At Whittier Trust, we take cybersecurity seriously, and we aim to help you maintain your online security and safeguard your sensitive information.

Strengthen Your Passwords

Your passwords are the first line of defense against unauthorized access. It’s important to:

Use Strong, Unique Passcodes: Create passwords that are at least 12-16 characters long, combining uppercase and lowercase letters, numbers, and symbols. Avoid using easily guessable information such as birthdays, names, or common words.
Employ Unique Passwords for Each Account: Reusing passwords across multiple services is a significant risk. If one account is compromised, all others using the same password become vulnerable.
Utilize a Password Manager: A reputable password manager can securely store your complex, unique passwords and generate new ones for you. This eliminates the need to remember dozens of different combinations.
Enable Multi-Factor Authentication (MFA): Whenever available, activate MFA (also known as two-factor authentication or 2FA). This provides an extra layer of security by requiring a second form of verification (e.g., a code sent to your phone) in addition to your password.
Change Your Password Frequently: Passwords should be changed at least quarterly, with email passwords updated even more frequently.

Practice Safer Online Browsing

In today’s digital landscape, safe browsing starts with simple habits. Always verify links before clicking and stop to double-check any unexpected prompts before entering your credentials.

Website Security: If your browser warns you that a site’s certificate is invalid, don’t ignore it. Those warnings mean the connection isn’t secure or the site may be fraudulent. If the site doesn’t use HTTPS, do not enter any sensitive information. It can easily be intercepted.
Sensitive Sites: Type the web address yourself for sensitive sites. Don’t trust links in emails or chats.
Manually entering https://yourbank.com ensures you land on the real site, not a spoof.
Website Misspellings: Beware of URL misspellings. For instance, “examplle.com" isn’t the same as "example.com.” Attackers can register look-alike domains to trick you—always verify each character.
Carefully Inspect Web Links: Never click a link you weren’t expecting, and examine search results before clicking on links. Phishing sites often hide behind innocuous or legitimate looking links.

Keep Software and Firmware Updated

Software updates often include critical security patches that fix vulnerabilities exploited by cybercriminals.

Operating System and Applications: Ensure your computer's operating system (Windows, macOS, Linux) and all software applications (web browsers, office suites, antivirus programs) are set to update automatically or that you regularly check for and install updates.
Device Firmware: Many devices, from printers and smart TVs to network-attached storage (NAS) devices, have firmware, a type of embedded software that provides low-level control for the device’s operation. Check the manufacturer's website periodically for firmware updates and install them promptly. These updates often address security flaws.

Secure Your Router (Wi-Fi)

Your internet router is the gateway to your home or office network. Securing it is paramount, using strategies such as:

Change Default Credentials: The first step after setting up a new router should be to change the default administrator username and password. These are often publicly known and easily exploited.
Update Router Firmware: Like other devices, routers receive firmware updates that improve performance and, more importantly, patch security vulnerabilities. Consult your router's manufacturer for instructions on how to check for and install updates.
Use Strong Wi-Fi Encryption: Ensure your Wi-Fi network uses WPA2 or WPA3 encryption. Avoid older, less secure options like WEP.
Guest Network: Consider enabling a guest Wi-Fi network for visitors, keeping your main network separate and more secure.

Protect Against Malware and Spyware

Malware (malicious software) and spyware can compromise your system, steal data, or disrupt operations. It’s critical to make sure you:

Install Reputable Antivirus/Anti-Malware Software: Use a trusted security solution and keep it updated. Regularly scan your devices for threats.
Be Wary of Suspicious Emails and Links: Phishing attempts are common. Avoid clicking on links or opening attachments from unknown senders. If something looks suspicious, even if it appears to be from a known contact, don’t engage.
QR codes: Avoid scanning QR codes from unexpected or unfamiliar sources due to the risk of phishing and malware attacks.
Download from Trusted Sources: Only download software and files from official and reputable websites. Avoid third-party download sites that may bundle unwanted or malicious programs.
Firewall: Ensure your operating system's firewall is enabled, or use a dedicated firewall solution, to control incoming and outgoing network traffic.

Be Mindful of Public Wi-Fi

Public Wi-Fi networks (in cafes, airports, etc.) are often unencrypted and insecure, making your data vulnerable to interception.

Avoid Sensitive Transactions: Refrain from accessing banking, shopping, or other sensitive accounts when connected to public Wi-Fi.
Avoid Wi-Fi Networks Without Passwords: These networks pose significant security risks. Without a password, these networks lack encryption, making your data vulnerable to interception by malicious actors.
Your cell phone hotspot is considered more secure than public Wi-Fi.
Use a Virtual Private Network (VPN): A VPN encrypts your internet traffic, providing a secure tunnel even on unsecured networks.

Your Role in Cybersecurity

Whittier Trust occasionally hosts cybersecurity seminars in which we share knowledge and strategies for handling online threats. During these events, attendees have the opportunity to learn practical skills and gain insights related to the topics discussed in this letter. Stay tuned for future event announcements.

While we implement robust security measures at Whittier Trust, your vigilance is a critical component of a strong overall security posture. As a companion to this article, please review this helpful checklist, designed to help keep you on a regular schedule of maintaining good cybersecurity hygiene.

Remember, Whittier Trust will never ask for your personal or secure information via text message or email. If you get such a suspicious piece of communication, please reach out to your client advisor directly. Also, Whittier Trust does not transfer your cash without verbal or written confirmation. If you have any questions or require further assistance with your cybersecurity practices, please do not hesitate to contact us.

For more information about how Whittier Trust can protect you, your family, and your estate from cybercriminals, start a conversation with an advisor today by visiting our contact page.

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Jul 31st

Three Things to Do Before You Sell Your Company

Structuring the sale of your business to preserve your assets and legacy.

Many entrepreneurs looking to sell their business are unaware of how many options they have in structuring that sale and the profound differences those different paths can make. A well-planned sale can save thousands—or even millions—of dollars in taxes and lay the foundation for lifelong security, comfort, and opportunity for yourself and your family. “Making the wrong choice could be one of the biggest regrets of your life,” says Andrew Ryan Hall, Vice President and Fiduciary Advisor with Whittier Trust Company of Nevada. “But with some foresight and planning, it’s possible to set a course for the best outcome.”

As part of the Reno office of the oldest multi-family office headquartered on the West Coast, Whittier Trust, Hall gives clients the advantage of working within Nevada tax and trust laws while having access to a multi-state fiduciary team and network of attorneys, tax experts, and other advisors. He offers three pieces of advice for West Coast business owners who are anticipating a major liquidity event.

Start Planning as Soon as Possible

If you are like many first-time sellers, a majority of your net worth may still be tied up in the business itself. You may not yet have a full team of advisors—tax experts, estate planners, and fiduciary partners—because your focus has rightly been on building and positioning the company for a successful sale. But in truth, the earlier you begin thinking about life after liquidity, the better equipped you will be to make decisions that minimize tax exposure and align your wealth with your long-term goals.

“It's a chicken-and-egg question,” Hall says. “How do you surround yourself with the right people and resources before the ‘egg’ is in the picture? The answer is to begin educating yourself as early as possible so you have time to get referrals, do research, and have honest conversations with people you can trust to help guide your success. Failing to employ the best professionals ahead of time can be a costly mistake. There’s no undo button on certain decisions.”

Ideally, you’ll be able to plan as much as five years ahead of time, which would allow you to consider and compare solutions such as a C-Corp structure along with a qualified small business stock (QSBS) solution. But even if your timeline is more constricted, there are alternate solutions that can work to minimize your tax burden and optimize your net payout.

Consider All Options to Minimize the Tax Hit

Once you've sold your business, you could be paying a shockingly large tax bill depending on how you’ve structured the company and the sale. “If you're in a state like California that has a higher capital gains tax, you could be paying up to a 13.3% premium on top of federal taxes,” Hall explains. “But there are solutions that give you a lot more bang for the buck, while allowing you to support your lifestyle and create a legacy for your family and maybe the broader community.”

A charitable remainder trust gives you a steady cash flow while deferring the capital gains that would have been realized, allowing assets to grow and providing an opportunity to implement your charitable goals.
A non-grantor trust has the benefit of mitigating state long-term capital gains taxes while taking care of designated family members or other beneficiaries.
A family limited partnership can facilitate the transfer of assets and wealth between generations, potentially reducing gift and estate taxes, provided you have time to plan in advance.
Setting up an irrevocable trust in Nevada could effectively avoid state capital gains tax on your sale because Nevada has no state or corporate income tax. We can coordinate with your attorney on implementing these types of estate strategies.

Define Your Personal Goals

We know that planning for a sale can be all-consuming. Even if you have a number of experts advising you, sometimes that advice results in an overwhelming confluence, or even conflict, of guidance. At Whittier Trust, we take a holistic approach, listen to your concerns and expectations, and help you take a step back to make sure you can confidently achieve your goals by crafting solutions that last generations.

“Taxes are only one slice of the pie,” says Hall. “We also want to know how you hope to use your assets and what impact you hope this sale will have on your legacy. We see the whole map and make sure that you’re getting to the right destination by coordinating proactively with all the different professionals needed. Together, we help create the best map for you, then keep you on track to accomplish that goal, using best practices to get the optimal outcome.”

If you’re ready to explore Whittier Trust’s family office services, 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.

Jul 29th

The Art of Stock Selection

Understand you are buying a business, not trading a stock.

The casual investor tends to focus on the wrong thing when investing. Most will think of the stock as the investment while forgetting the most important part.

The most important thing to remember about investing in stocks is that you are not just buying a stock. Rather, with every purchase, you are investing in a business. Investing in businesses and owning companies is at the heart of how we at Whittier Trust think about investing.

Too often, I hear analogies that try to equate investing with throwing darts or, even worse, gambling. If you divorce stock prices from business fundamentals, it is easy to understand how the average person can be confused by short-term volatility. However, conflating short-term price movements as markets digest new information with the odds at a roulette table can lead to suboptimal outcomes. This is one of the reasons we eschew even using gambling terms such as “going all in” or “double down.”

This subtle shift in mindset about owning a business allows us to truly think about the long-term consequences of our decisions and not react to the “daily gyrations of Mr. Market,” as Professor Benjamin Graham famously described the erratic swings of optimism and pessimism.

Owning Stock is Business Ownership

Thanks to this simple mindset shift, we can begin to do our homework. Understanding a business means understanding how a company actually makes money, so we need to have a very strong understanding of how a dollar of revenue translates into a dollar of profit. This basic act of tracing revenues through the income statement will elicit questions and allow us to understand the fundamentals of how a business operates. Things like margins and how they are impacted by both fixed and variable costs will allow us to understand the health of the business and the dynamics of the industries in which they compete.

On the other side of the ledger, we also need to focus on how a business and management team has decided to fund operations. Debt levels and borrowings need to be understood and analyzed. People often think of higher debt loads as universally being a bad thing, but for us, debt financing is a function of the certainty and consistency of cash flows. Said another way, if market cycles will dramatically impact cash flows, as is the case with semiconductors, then those companies should have a more appropriate level of debt financing. When thinking about fundamentals, we look for quality companies that have strong operations, and we think about how they will function during different economic cycles.

Finally—and most importantly—we need to assess the quality of the management team. Quality businesses do not happen accidentally; it’s a consistent and continuous process that allows a culture to take shape. However, this most important component is the most difficult to quantify, and we think this helps give our active approach a very significant edge.

Exchange-traded funds (ETFs) and mutual funds have their place in the investing universe. However, we at Whittier Trust believe that investing in a company where you can actively analyze long-term viability and the quality of management, rather than blindly investing in a stock, will ultimately lead to a much better outcome. We make it our mission to do that kind of deep due diligence on behalf of our clients, so that our investment strategies are just that—strategic, based on data and our expectations for the future.

So much has been written about investing in stocks, bonds, and a myriad of other asset classes. It seems a new way of increasing wealth is created with each new generation of investors. Yet if you look through so much of the noise and focus on what is actually driving the value of the investment, you can begin to form a track record of success. For us, understanding that a stock price is the outcome of the health of a business has allowed us to focus on creating wealth for the long term.

Written by Teague Sanders, CFA, Senior Vice President and Senior Portfolio Manager at Whittier Trust. Based in our Pasadena office, he is the co-manager of the company’s Small Cap and SMID investment strategies.

If you’re ready to explore how Whittier Trust’s tailored investment strategies can work for you, 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.

Jul 3rd

Recent Updates Regarding Washington State Taxes

Washington Capital Gains Tax

Beginning January 1, 2022, a flat 7% tax on net long-term capital gains went into effect. Many advisors believed the tax to be unconstitutional and that it would be repealed if/when challenged. However, the WA Supreme Court upheld the tax in March of 2023 in Quinn v. Washington. Additionally, the public had a chance to repeal the tax in November of 2024, but approximately 63% of the voters opposed repealing the tax. Regardless of the questionable legality and polarizing nature of this tax, it is here to stay.

On May 20, 2025, Senate Bill 5813 was signed into law, creating a new tier to the capital gains tax, adding 2.9%, for a total of 9.9%, for gain exceeding $1m. The change is retroactive to January 1, 2025.

Summary of the Washington Capital Gains Tax

A full explanation of the Washington Capital Gains Tax is beyond the scope of this update; however, several key items are highlighted here:

Only individuals are subject to the tax. This includes any gains that flow through to individuals from pass-through and/or disregarded entities such as LLCs and S corporations.
- Taxable trusts are currently exempt.
  - Gains recognized by grantor trusts, being disregarded entities, will flow through to the grantor(s) and may be subject to the tax.
- Additionally, beneficiaries of taxable trusts who receive allocations of long-term gain may be subject to the tax.
Only long-term capital gains are subject to the tax. Ordinary income, short-term capital gains, qualified dividends, tax-exempt interest, etc., are all exempt.
Taxpayers have an annual standard deduction ($250,000 originally but adjusted for inflation. The 2024 deduction was $270,000. The 2025 amount has not yet been released.) With the recent update, the new effective tax brackets are:

- The deduction is per taxpayer. Married couples are considered one taxpayer. Therefore, married couples have just one deduction.
Generally, only individuals who are domiciled in Washington (on the date of sale) are subject to the tax. Gain from the sale of certain tangible property is subject to the tax for those domiciled outside the state.
The tax is calculated by starting with the taxpayer’s federal net long-term capital gain for the year and then modified for gains and losses excluded from the tax. The following are excluded (this is not a complete list):
- Gain/Loss from the sale of all real estate (which includes gain from the sale of real estate flowing through pass-through entities).
  - Sales of entities that own real estate, as opposed to the sale of the real estate itself, will likely not qualify for the real estate exemption.
- Gain/Loss from the sale of depreciable property under IRC §167(a) or under §179 (i.e. business property such as equipment).
- Gain/Loss from the sale of qualified family-owned small businesses:
  - What constitutes a family-owned small business and how to calculate the related deduction is complex and beyond the scope of this article.
- Alternative minimum tax adjustments associated with the gain.
- Qualified opportunity zone gain exclusions (this is an add-back for Washington tax).
- Like California, gain recognized federally by an incomplete non-grantor trust (ING), regardless of situs, is pulled back into Washington, and taxed as part of the grantor’s individual capital gain.
The taxable gain is reduced by charitable gifts, but only gifts made to charities principally managed in the state of Washington. Additionally, only gifts exceeding $250,000 (also adjusted for inflation, so it tracks with the standard deduction) are deductible, and the total deduction is limited to $100,000 (adjusted for inflation, $108,000 in 2024).
- For example, if a taxpayer made $300,000 of charitable gifts in 2022 (before the inflation adjustments), they would deduct $50,000 from their taxable gains, producing $3,500 of tax savings.
- Charitable gifts to donor-advised funds (DAF) would only be eligible if the DAF is directed or managed in Washington (even if the DAF distributes grants to organizations outside Washington).

The tax is relatively new, and there remain several complexities and uncertainties beyond the scope of this article. These include, but are not limited to:

Consideration of capital loss carry forwards
Qualified family-owned small businesses
Qualified small business stock
Charitable remainder trusts and how the tax may impact both the grantors and beneficiaries
Allocation of the $250,000 deduction between spouses who file separately
Credits related to:
- B&O Tax
- Taxes in another jurisdiction related to the same gain

Planning Opportunities

The recent update has not materially changed the existing tax, so the same planning strategies remain. What the increase has done is further clarified the direction and plans of Washington State’s legislature as it relates to tax policy. Along with recent increases in Washington’s Estate Tax, the state has broadened sales taxes and expanded interpretations of B&O Tax. It appears likely the state will continue to create and increase taxes on individuals and businesses residing and doing business in Washington.

There are several strategies for avoiding Washington capital gains tax, including:

Domicile Planning – The Washington capital gains tax is primarily a tax on gain associated with the sale of intangible assets, like marketable securities. This type of gain is sourced to a taxpayer’s state of domicile. Depending on the facts and circumstances of each taxpayer, being thoughtful about the timing of a domicile change may be worth consideration. This is also a powerful planning tool for estate tax avoidance.
Spreading Gain Across Years – Each taxpayer has a $250,000 (inflation-adjusted) annual deduction, and being thoughtful about the timing of sales can be meaningful, as well as specific strategies like installment sales to spread receivables and gain over several taxable years.
Spreading Gain Across Taxpayers – Because every taxpayer has the standard deduction and Washington state has no gift tax, outright gifts to individuals (other than spouses), while being mindful of the federal gift tax implications, can multiply the exemption. This is even more powerful if the gift recipient is domiciled outside of Washington state, making any gain for them fully exempt.
Taxable Trusts – Other than INGs, taxable trusts are exempt from the tax. Once again, being mindful of federal gift tax implications, gifts in trust can completely avoid Washington capital gains tax. Additionally, converting grantor trusts to non-grantor trusts is also potentially a viable strategy.

Washington Capital Gains Tax currently has a maximum rate of 9.9%, and although this is only one aspect of any planning, and although it is unlikely that this tax would be the defining factor in decision making, nearly 10% tax is likely not immaterial. With the state of Washington creating higher taxes across the board, this is a good time to consider both your short-term and long-term planning.

Washington Estate Tax

Recent Update

In addition to an increased capital gains tax, there were two, potentially more impactful, changes to the Washington Estate Tax, impacting estates of decedents dying on or after July 1, 2025:

Estate tax exclusion is increasing from $2.193m (which has been static since 2018) to $3m. Additionally, the exclusion will be adjusted annually for inflation going forward.
Tax rates are increasing dramatically as detailed below, with the top rate growing from 20% to 35%.

To demonstrate how meaningful these changes are, consider the following examples:

Similar to the changes for the Washington capital gains tax, the changes in estate tax do not fundamentally change how the tax works but rather increase the negative outcomes. The same strategies advisors have been using to avoid the estate tax are all still viable, simply more effective now. Common strategies include shifting growth assets out of large estates, domicile planning, employing multi-generational GST-exempt trusts, charitable giving, and so on. With these radical rate increases, it’s the perfect time to have conversations with your advisors.

One planning item that is often overlooked is entity structuring related to real property. Washington estate tax excludes real property outside of Washington, but intangible assets are sourced to the state of domicile. This creates a valuable planning opportunity to categorize assets as intangible or tangible based on the location of the asset and the domicile of the taxpayer. For example, if you are a Washington domiciliary and you directly own a house (i.e. not through an LLC or corporation), or other tangible property, outside of Washington, upon death, Washington will exclude this asset from estate tax because tangible assets located elsewhere are not subject to WA estate tax.1 However, if a Washington domiciliary owns units of an LLC, which owns that house, the value of those LLC units is included in that decedent’s estate tax because LLC units are considered an intangible asset.

To plan for this situation, a Washington domiciliary can own real property located outside the state either directly or in a revocable trust. Conversely, if a non-WA domiciliary owns real property in Washington, that property can be owned in an LLC to ensure that the property is sourced to the non-WA decedent’s state of domicile. This planning should consider non-tax issues, such as any liability concerns, as well.

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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Jun 19th

Is a Donor-Advised Fund Right For You?

Be sure you understand your charitable options before committing.

A $1 billion dollar donation is always a big piece of news, and when an ultra-high-net-worth individual or family makes such a gift, the world is sure to take notice. Within the last year, such donations have been made to community foundation donor-advised funds (DAF). No doubt, these gifts are generous and can move the needle philanthropically for causes dear to the hearts of the donors, but digging into the fine print on the fund establishment documents can reveal some drawbacks. For example, many community foundation DAFs stipulate that the power to direct those assets moves from the original donor's family to the foundation after the donors’ or their children’s passing. However, there are options for perpetual funds that are every bit as impactful, while offering more control for donors and their families for generations to come.

As the number of high-net-worth Americans has grown in the 21st century, the popularity of DAFs has soared. According to the National Philanthropic Trust, total grants from DAFs have been on the rise for over a decade, more than doubling in the past five years alone.

So why are so many people choosing DAFs as their giving vehicle? Whittier Trust’s Jeff Treut, Vice President, and Pegine Grayson, Senior Vice President and Director of Philanthropic Services, discuss the benefits, limitations, and misconceptions.

Why DAFs?

“Immediate tax benefits are a primary reason most of our clients choose a DAF,” Treut says. “The tax deductibility rules for DAFs are much more favorable than those for private foundations, especially when it comes to appreciated alternative assets like real estate and private equity. You get the write-off. Then, you can support your preferred charities on your own timetable. The second reason is that a DAF is a much simpler and less costly vehicle to establish and manage than a private or family foundation.”

While a private foundation requires ongoing management, a DAF requires only a few steps:

Complete a simple form on which you name your fund, advisors, and any successors. You can also spell out your wishes for grantmaking after your passing.
Make a contribution (typically, cash, stock, or real estate) and receive an immediate tax deduction for the fair market value. No capital gains tax is due.
Recommend grants from your account to qualified charities at any time.

Other benefits of DAFs include the ability to make anonymous grants (not possible with foundation grants) and to use the word “foundation” in the DAF name, if desired.

Choosing The Right DAF Platform

All DAFs are not created equal, and it can be confusing to know which one is best for your needs. There are essentially four types of DAF sponsors from which to choose:

Community foundations: A good choice if you want a sponsor with deep knowledge of a particular community. But beware the fine print: Because their mission is to grow their own endowments to benefit their local regions, they often limit the number of successor advisors that can be named (after which time the funds roll over into a general fund) and often aren’t comfortable accepting alternative assets.
Large nonprofits, such as hospitals and universities: These “proprietary” DAF platforms make sense for donors who know they primarily or exclusively want to benefit a particular nonprofit and trust it to manage their charitable funds.
Institutional DAFs: Examples of this type include Fidelity, Vanguard, and Schwab. “For donors who are fee-sensitive and tech-savvy, these can be a good choice,” says Treut. “But they tend to be very low-touch, high-tech operations. Most don't provide you with a dedicated advisor. They basically say, ‘Here’s your DAF, here's the portal; it’s up to you.’”
White-labeled platforms for wealth management firms: This is the Whittier Trust model, and for the reasons discussed below, it is the fastest-growing segment of their philanthropic services offerings.

“We developed our donor-advised fund platform intentionally to provide the flexibility and responsiveness that our ultra-high-net-worth clients need,” says Grayson. “We’re comfortable accepting gifts of real estate, and we can hold private equity and stock concentrations. We don’t limit the number of successor advisors our clients can name, because we have no mission other than helping our clients achieve theirs. We can also treat your DAF like a private foundation, providing you with a dedicated grantmaking portal and customized grant-related correspondence, facilitating meetings with your family and helping you clarify your mission and values, setting charitable giving goals, and identifying and vetting nonprofit grantees. We offer our DAF services to unlimited generations of family members, which is important to our clients.”

“The reason our clients love this model is because our philanthropic team provides that extra layer of support and quality control, which is only possible when your advisory team knows you intimately,” says Treut. By way of example, he notes that one of Grayson’s clients decided to move her DAF from a community foundation to Whittier Trust when the community foundation sent a $30,000 grant to the wrong organization because the staff wasn’t familiar with her grantmaking patterns.

Whittier Trust also attracts clients who have needs that other firms might find too difficult to manage. “We had a family from Houston who wanted to contribute shares of a single publicly traded stock valued at over $1 billion into a DAF,” Treut recalls. “By the time they found us, they had been turned down by several platforms that were either unable to accept that large of a stock concentration or unwilling to hold it because they insisted on liquidating the shares so the assets could be put into proprietary funds. The client was understandably concerned about moving the market with a sale of that size. Because of the structure of our platform and because we have no proprietary equity funds, we can manage stock concentrations like this.”

Making a Move

Moving a DAF from one provider to another isn’t difficult. You simply recommend a grant for the entire amount of the existing fund to the new fund. In the same way, it’s also possible to convert a private foundation to a DAF (although you’ll incur some legal fees along the way to dissolve a corporate foundation). One thing you cannot do, however, is convert a donor-advised fund to a private foundation.

If you’re ready to learn more about the charitable vehicle options available to you and your family, start a conversation with a Whittier Trust Advisor by visiting our contact page.

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We believe final tariffs will be lower than those proposed currently; their impact on growth and inflation will be lower than feared.

We assign a low probability to a recession, “stagflation” or a bear market.

We expect the S&P 500 to deliver a positive return in 2025.

We believe fears of “de-dollarization” and significantly higher Treasury yields are overblown.

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Jun 12th

Steady and Measured Real Estate Investing

Why a long-term approach is a smart strategy, regardless of the economic outlook.

It’s nearly impossible to turn on the television or read an economic journal without being confronted with news about stock market volatility and concern about interest rate fluctuations. Ultimately, market factors are always in play. Economies, and the components that make them up, are always fluid.

“While the uncertainty in the interest environment has affected our ability to buy properties, the fundamentals of the properties haven't changed much,” says Whittier Trust Vice President of Real Estate Jorge Ramos, who advocates a long-term approach to real estate investing. “We're still finding quality properties that we like and ones we feel could ride out any cycle in terms of valuation. The properties are just more of a challenge to identify.” Here are some of the reasons why a long-term approach is a winning strategy for real estate investments.

A Good Buy

When Whittier Trust’s real estate division evaluates a prospective investment opportunity, they are looking for population and job growth over time. While any location is open for consideration, Whittier tends to focus on major cities that have a long-term track record, as opposed to small towns with sudden surges. “We want to invest in locations that will do well over a long period,” Ramos says, which can translate into more secure investments for Whittier Trust’s clients.

Although the team reviews various property types, most of Whittier Trust’s recent investments have been in multifamily properties. The team has been focused on investments between $15-30M in client equity. Investigating whether rents are increasing in the market, along with occupancy rates and demand for housing, are key to our evaluation. Whittier Trust’s investment group becomes the sole limited partner, holding 90-95% of a project’s equity, while an operating partner familiar with the market and property type typically holds a 5-10% investment and the responsibility of day-to-day management. Key elements are investigated and evaluated to determine whether a project has the potential to be a viable and opportunistic investment.

Patience for the Long-Haul

When Whittier Trust embarks on a new real estate investment, the team generally looks at investments on a 5 to 10-year horizon, although they are flexible should the right opportunity present itself. It’s a vastly different approach than the goal of making a quick return or planning to “flip” a property. “Within that range, there will likely be an opportunity to have a good outcome for the asset. A long-term strategy is important because it makes you less susceptible to economic cycles,” Ramos explains.

With housing costs—both for single-family homes and rents—on the rise across the United States and interest rates climbing, it’s vital to look toward markets that have a proven track record. “While everything's fair game, there are certain markets that have fared better. We gravitate towards markets that demonstrate greater staying power,” Ramos says. Even with some market volatility, planning to hold onto a piece of real estate for a decade or more gives the investment time to produce solid returns for Whittier’s clients.

Interest Rates’ Impact on Real Estate Investing

As real estate investors are aware, a property is worth what someone is willing to pay for it. However, during a period of ultra-low interest rates, buyers could afford to pay more for properties in some cases. That’s changing amid higher interest rates, and it requires a nuanced approach to get the best result for Whittier Trust clients.

“We're at a certain place in terms of valuation based on cap rates,” Ramos explains, adding that interest rates have increased by approximately three and a half percentage points since the beginning of 2022. “Valuations haven’t necessarily gone down as quickly. Interest rates are significantly higher than the cap rates on many properties, which means that the unlevered yield would be lower than the interest you're paying, leaving you in a position where you have to fund debt service initially, as the property stabilizes.”

Whittier Trust’s Real Estate division looks for investments that are both solid buys and growth opportunities, with the objective of generating lucrative returns, even in the face of interest rate fluctuations. And should interest rates drop over the life of a property, refinancing for a more advantageous position is possible.

Building a Legacy

This long-term approach perfectly aligns with one of Whittier Trust’s core tenets: legacy-building by passing wealth intergenerationally. “We know that there is staying power in real estate. History favors the patient investor,” Ramos says.

Approaching real estate investments conservatively so that they will perform well over time includes going back to basics to make sure the fundamentals are solid, choosing a good location, partnering with top-notch management, and optimizing the debt on the property. When Whittier Trust closes any deal, “we thoroughly understand the market conditions that will make the property perform well,” Ramos says.

If you’re ready to explore how Whittier Trust’s real estate services can work for you, your family, and your portfolio, 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.

Jun 10th

Separating Signal from Noise

Staying focused on what drives long-term returns.

Filtering the Noise

Markets are in a constant state of change—it's a natural characteristic of a dynamic, evolving economy. With that change often comes a steady stream of headlines, opinions, and predictions. From shifting policies to economic speculation, the volume of commentary can feel overwhelming. But amid the noise, long-term investors must focus on what truly matters: the underlying signals that shape lasting market performance.

Noise vs. Signal

Much of what dominates the financial news cycle is short-lived—noise that captures attention in the moment but has little bearing on long-term outcomes. Signals, on the other hand, reflect durable economic forces. These include productivity trends, demographic shifts, technological innovation, consumer behavior, and the direction of monetary and fiscal policy. These elements play a far more significant role in shaping market returns over time.

As Nielsen Fields, Vice President and Portfolio Manager at Whittier Trust, puts it: “The highs and lows in the market are normal and temporary. Over the long term, stock prices track the earnings power of businesses.” Decades of data support this view. Over the past 70 years, the vast majority of market returns—over 90%—have been driven by fundamentals such as earnings and dividends. Meanwhile, valuation shifts, measured by the price-to-earnings (P/E) ratio, have accounted for less than 10% of returns.

Figure 1: S&P 500

Source: Bloomberg, Data from June 1955 through May 2025.

Volatility Is Part of the Journey

Periods of market volatility can be uncomfortable, especially when they affect long-term financial plans. But volatility is not a flaw in the system—it’s a feature. Markets reflect the evolving expectations of millions of participants reacting to new information in real time. What matters is not avoiding volatility but maintaining discipline and clarity amid it. Long-term investing success depends on the ability to tune out the noise and stay focused on enduring fundamentals. The challenge is real—but so is the reward.

The Risk of Reactionary Decisions

“Reacting emotionally can be more damaging than any downturn itself,” says Whittier Trust Executive Vice President and Chief Portfolio Manager Caleb Silsby. “Historically, missing just the best 5 days in the market can reduce overall returns by nearly 40%. Those days typically happen in or around bear markets, so if you're getting out and you miss the recovery early on, it can make a significant difference in your total return profile. It brings your whole average down quite a bit.”

“The COVID-19 lockdown was a perfect example of when some investors wanted to sell everything,” Silsby continues. “In the end, government stimulus completely turned the market around. And because it occurred on a Sunday, there was no way to trade ahead of that. So even if you were right about everything from an economic perspective with COVID, the policy response was so swift and dramatic, that if you had sold and missed out on the recovery, that was more damaging than if you decided to ride out the storm.”

“If you could have seen the headlines that were coming for the first three months of 2020, you would have surely thought no way should I invest,” Fields adds. “But then stocks were up 18% that year. So even if you had perfect news and headline visibility, it doesn't necessarily give you certainty on your equity return. In fact, periods of high uncertainty and volatility have historically led to the best forward short- and long-term returns.

Figure 2: S&P 500 Returns vs. Volatility Index

Source: FactSet. As of April 15, 2025. Data since 1990.

The Whittier Strategy

At Whittier Trust, our long-term perspective on markets creates latitude that can help shield client portfolios against temporary downturns. “For example, we encourage clients to keep one year's worth of spending in a cash reserve,” Fields says. “We aim for another 3 to 4 years worth of fixed income to shore up against any short- to medium-term storm on the equity side. This way, a client’s spending needs are covered for the next handful of years, and there’s no need to make a rash move at the wrong time in the equity market.”

Market growth occurs as a series of highs and lows—it’s not a straight line. “Investors will inevitably experience drawdowns in their portfolio at times. Historically, market downturns, while concerning in the moment, have proven to be an opportunity in the fullness of time,” Fields says. “If you own quality businesses with durable competitive advantages, strong balance sheets, run by capable management teams investing to grow the business for the long term, then the noise is a less important factor than the enduring pursuit of fundamental investing.”

In that vein, the Whittier Trust team uses a two-tiered approach to investing, integrating macroeconomic analysis with stock-specific security selection. On the macro side, we look for broad economic health by tracking various information such as inflation, overall economic growth, and consumer health. We analyze consumer purchasing behavior, default rates, delinquencies, as well as savings and employment rates. The Whittier Investment Committee then assimilates this top-down macro information with the bottom-up, company-specific insight generated by the investment team to form a view on the fundamental direction of the economy and businesses and how that compares to all the “noise” in the headlines.

Headline Noise & Opportunities

“Here's one example of how we sift through the media noise to get to the heart of an issue,” Fields says. “A recent headline reported that a North Carolina bridge project had been defunded at the federal level, and this caused a significant stock market reaction for related stocks. But the reality was that a small amount of grant funding related to a few initiatives had been pulled, not the entire project. That was an opportunity for our clients.”

Silsby adds: “Once you understand how much the public overreacts to news, the perceived threat of a short-term swing can be transformed into new investment opportunities. When people are becoming bearish, and getting out of the market because they're fearful, that's often a good time to be adding capital to that asset class.”

The indisputable upward growth of the S&P 500 over more than 70 years demonstrates how it continues to perform despite the world’s most challenging moments—wars, recessions, pandemics—and how long-term investors are rewarded for their patience.

S&P 500 Total Return

Source: Bloomberg. Data from June 1955 through May 2025.

Trusting in their Whittier advisor and the longstanding upward trend of global markets, clients can stay grounded and navigate uncertainty with confidence. Patient capital investing—owning businesses that can compound capital at an attractive rate over the long term—is Whittier Trust’s core philosophy, and it has served our clients well, with strong returns on their investments, for more than 40 years.

If you’re ready to explore how Whittier Trust’s tailored investment strategies can work for you, start a conversation with a Whittier Trust advisor today by visiting our contact page.