Here are four examples of how Cumberland Trust’s collaborative and personalized approach to trust administration has helped families navigate complex situations, preserve harmony, and protect generational wealth.
Case Study #1: Restoring Stability and Financial Discipline
A high-net-worth family faced financial instability within their trust due to unchecked spending. The previous trustee focused on paying the bill for purchases with trust assets without addressing the trust’s long-term goals. This approach led to overspending and strained family relationships. The family sought a corporate trustee to provide stability and guidance.
The Pillars of Our Approach
Develop a Sustainable Spending Plan
Cumberland Trust collaborated with the family and their financial advisor to establish a financial plan that aligns with the trust’s goals.
Address Tough Conversations
Cumberland Trust facilitated discussions to reduce unnecessary expenses, such as private travel, ensuring essential needs like health care and housing were prioritized.
Balance Immediate and Long-Term Goals
Through a collaborative approach, Cumberland Trust aligned the beneficiaries’ current needs with the trust’s long-term preservation, fostering stability and peace of mind.
Solutions
With Cumberland Trust’s collaborative and personalized approach to trust administration, the trust is now on solid ground. The family has peace of mind knowing their assets are being thoughtfully managed to preserve their wealth and harmony for future generations.
- Worked closely with the family’s financial advisor to develop a sustainable spending plan.
- Tackled necessary conversations about reducing unnecessary expenses, such as private travel.
- Ensured essential needs like health care and housing were prioritized.
- Focused on long-term preservation to balance beneficiaries’ immediate needs with the trust’s future security.
Case Study #2: Managing the Complexity of Illiquid Assets
An entrepreneurial family with a complex business portfolio faced a sudden increase in trust complexity after the unexpected passing of the grantor. The trust expanded to include ownership in numerous family businesses and other significant assets. Another branch of the family, frustrated with inefficiencies at a large regional bank, also needed a solution to manage their more than 20 trusts effectively.
The Pillars of Our Approach
Strategic Collaboration with Key Advisors
Cumberland Trust worked closely with the family and their advisor to navigate the intricate web of LLCs, partnerships, and generational dynamics.
Coordinate Onboarding and Communication
Extensive coordination across internal teams ensured seamless onboarding, transparent communication, and a focus on establishing a sound trust foundation that aligned with the family’s goals.
Long-Term Guidance and Legacy Preservation
Cumberland Trust provides ongoing support to the multi-generational family, preserving their legacy while fostering their entrepreneurial ambitions.
Solutions
Today, Cumberland Trust is a trusted partner to this multi-generational family. From guiding descendants in navigating their entrepreneurial ambitions to maintaining a disciplined and focused approach to trust administration, Cumberland Trust helps preserve the family’s legacy and values for future generations.
- Partnered with the family and their advisor to navigate LLCs, partnerships, and generational dynamics.
- Coordinated extensively across internal teams to ensure seamless onboarding and communication.
- Focused on building a sound trust foundation aligned with the family’s goals.
- Provided steady guidance to the multi-generational family members.
- Preserved the family’s legacy while supporting their entrepreneurial ambitions.
Case Study #3: Flexibility and Service for Unique Family Situations
A multi-generational family with significant wealth faced frustration with a large national trust company whose rigid guidelines and slow processes hindered access to trust funds, even for essential needs like purchasing a home. The family office advisors sought a flexible and responsive corporate trustee who could address the family’s unique needs and goals.
The Pillars of Our Approach
Customized, Tailored Trust Administration
Cumberland Trust provided a tailored trust administration approach, balancing the unique generational needs and addressing concerns regarding pooled family investments.
Flexible Solutions and Clear Communication
By implementing flexible distribution schedules and clear communication, they efficiently resolved challenges, including providing a creative bridge loan to facilitate a home purchase.
Ongoing Support and Alignment
The family now benefits from a positive relationship with Cumberland Trust, while their family office values the thoughtful, independent support that aligns with their long-term goals.
Solutions
With Cumberland Trust’s support, the family now has a positive and collaborative relationship with their corporate trustee. Their family office has also strengthened its partnership with Cumberland Trust, knowing they can rely on their independent administration to meet the family’s needs thoughtfully and efficiently.
- Provided a tailored trust administration approach, balancing generational needs and addressing concerns about pooled family investments.
- Offered flexible distribution schedules and clear communication to resolve challenges efficiently.
- Fostered a positive relationship with the family, ensuring satisfaction with Cumberland Trust’s support.
- Delivered thoughtful, independent support that aligns with the family office’s goals.
Case Study #4: Finding the Balance Between Family & Business
A family with significant wealth from a privately held business faced challenges managing a complex trust structure. One sibling, serving as both trustee and an executive of the business, struggled to balance responsibilities while supporting their sibling, the beneficiary, who had a history of irresponsible spending and was vulnerable to financial exploitation.
The Pillars of Our Approach
Partnered as Co-Trustee
Established protective measures for the beneficiary and managed the trust’s complex asset mix, including an irrevocable trust.
Transitioned Responsibilities
Unburdened the original trustee of administrative duties, allowing them to reclaim their family role.
Customized, Tailored Trust Administration
Cumberland Trust offered thoughtful, confidential, and professional trust services aligned with the family’s needs.
Solutions
Cumberland Trust partnered as co-trustee, establishing guardrails to protect the beneficiary and managing the trust’s intricate asset mix. By carefully transitioning responsibilities, Cumberland Trust unburdened the original trustee of administrative duties, enabling them to reclaim their family role confident in their ability to provide thoughtful, confidential, and professional trust administration tailored to the family’s needs.
- Partnered as co-trustee to establish guardrails protecting the beneficiary.
- Managed the trust’s intricate asset mix, including an irrevocable trust.
- Transitioned responsibilities to unburden the original trustee of administrative duties.
- Enabled the trustee to reclaim their family role with confidence in Cumberland Trust’s ability to provide thoughtful, confidential, and professional trust administration.
- Tailored trust services to meet the family’s specific needs.
If you have high-net-worth clients with complex financial or family situations, an independent corporate trust administrator might be the solution.
Contact us today to find out how we can help your client situation.