Ultra-High-Net-Worth Family Office

Multi-Generational Wealth Strategy & Philanthropic Legacy

David & Patricia

Family Wealth Management

Net Worth: $45 Million | Target: $85 Million

Comprehensive Estate, Tax & Philanthropic Planning

Prepared: September 2025

Table of Contents

1. Executive Summary 3
2. Family Wealth Profile 6
3. Asset Allocation & Investment Strategy 10
4. Private Equity Portfolio 14
5. Real Estate Holdings 18
6. Philanthropic Foundation Strategy 22
7. Family Trust & TOSI Planning 26
8. Tax Optimization Strategies 30
9. Estate Planning & Succession 34
10. Family Office Structure 38
11. Risk Management 42
12. Implementation Roadmap 45

1. Executive Summary

Preserving and growing wealth across generations

Current Net Worth
$45M
Combined assets
10-Year Target
$85M
6% CAGR
Annual Income
$2M
Diversified sources
Foundation Assets
$10M
Tax-efficient donation

Strategic Wealth Management Overview

David and Patricia, your $45 million portfolio positions you among Canada's ultra-high-net-worth families. This comprehensive plan addresses the unique complexities of significant wealth: multi-generational transfer, sophisticated tax strategies, philanthropic legacy creation, and family governance. Our objective is to grow your wealth to $85 million over 10 years while establishing structures that will benefit your family for generations.

✓ Key Strategic Outcomes

Through implementation of advanced wealth management strategies:

Wealth Growth Projection

Path to $85 Million Net Worth
$100M $75M $50M $25M $0 2025 2027 2030 2033 2035 Family Net Worth Foundation: $10M → $20M $45M $85M 10-Year Wealth Growth Strategy

Strategic Implementation Priorities

Strategy Timeline Impact Annual Benefit
Foundation Setup Q4 2025 $2.8M tax savings $500K grants
Family Trust Q1 2026 Income splitting $200K tax savings
PE Investments Ongoing 15% target returns $2M+ gains
Real Estate 2025-2027 Income generation $1.2M cash flow
Tax Planning Annual Rate optimization $500K savings
Family Office 2026 Professional management 1% improved returns

Immediate Action Items

Critical First Steps (Next 90 Days)

Wealth Management Metrics

Asset Growth Rate
12%
Gross returns
Tax Efficiency
28%
Effective rate
Spending Rate
2.2%
Of net worth
Net CAGR
6.5%
After all costs

2. Family Wealth Profile

Understanding your complete financial ecosystem

Family Demographics & Goals

Category Details Planning Implications
David's Age 55 years 10+ years to retirement
Patricia's Age 53 years Estate planning horizon 30+ years
Children 3 (Ages 28, 25, 22) Next generation wealth transfer
Grandchildren 2 (Ages 3, 1) Education funding, long-term trusts
Primary Residence Toronto, Ontario Ontario tax jurisdiction
Secondary Homes Muskoka, Miami Multi-jurisdictional planning
Business Interests Multiple ventures Complex corporate structures

Current Asset Allocation

$45 Million Portfolio Composition
Net Worth $45M Private Equity: $13.5M (30%) Real Estate: $11.25M (25%) Public Markets: $20.25M (45%)

Income Sources Analysis

Income Source Annual Amount Tax Treatment Optimization Strategy
Business Distributions $800,000 Eligible dividends Family trust splitting
Real Estate Income $600,000 Rental income Corporate ownership
Investment Dividends $400,000 Eligible/Foreign Asset location optimization
Capital Gains $200,000 50% inclusion Harvest & donation strategy
Total Income $2,000,000 Blended Comprehensive planning

Family Wealth Objectives

Multi-Generational Vision

Liquidity & Cash Flow Management

Annual Spending
$1M
Lifestyle needs
Liquid Assets
$5M
Immediate access
Annual Taxes
$560K
All sources
Net Cash Flow
$440K
For reinvestment

3. Asset Allocation & Investment Strategy

Institutional-grade portfolio management

Strategic Asset Allocation

Asset Class Current Allocation Target Allocation Expected Return Risk Level
Private Equity 30% ($13.5M) 35% ($15.75M) 15-20% High
Real Estate 25% ($11.25M) 25% ($11.25M) 8-12% Medium
Public Equities 35% ($15.75M) 30% ($13.5M) 8-10% Medium-High
Fixed Income 7% ($3.15M) 5% ($2.25M) 4-5% Low
Alternative Investments 3% ($1.35M) 5% ($2.25M) 10-15% High
Total Portfolio 100% ($45M) 100% ($45M) 11-13% Balanced

Public Markets Portfolio

$20.25 Million Public Investment Strategy

Category Allocation Vehicles Annual Return Target
Global Large Cap $8M Direct holdings, ETFs 8%
Small/Mid Cap $3M Active funds 10%
Emerging Markets $2M Regional funds 12%
Fixed Income $3.15M Bonds, GICs 4.5%
Commodities/Gold $1.35M ETFs, physical 6%
Cash & Equivalents $2.75M Money market 3.5%

Investment Risk Management

Risk-Return Profile by Asset Class
Fixed Income Real Estate Public Equity Private Equity 20% 15% 10% 5% 0% 5% 10% 15% 20% Risk (Volatility) Expected Return Efficient Frontier Positioning

Rebalancing & Monitoring

Quarterly Portfolio Review Process

4. Private Equity Portfolio

Accessing premium returns through alternative investments

Private Equity Strategy

$13.5 Million Private Equity Allocation

Your private equity portfolio represents 30% of total assets, targeting superior risk-adjusted returns through:

Current Private Equity Holdings

Fund/Investment Vintage Commitment Called Capital Current Value IRR
Onex Partners V 2021 $3,000,000 $2,400,000 $3,200,000 18.5%
Brookfield Capital VI 2022 $2,500,000 $1,750,000 $2,100,000 15.2%
Northleaf Growth III 2023 $2,000,000 $1,200,000 $1,400,000 22.1%
Tech Venture Fund 2021 $1,500,000 $1,350,000 $2,100,000 28.7%
Healthcare Growth 2022 $1,500,000 $900,000 $1,100,000 19.3%
Direct Co-Investments Various $2,000,000 $2,000,000 $3,600,000 24.5%
Total Portfolio - $12,500,000 $9,600,000 $13,500,000 20.3%

Capital Call Management

Unfunded Commitment Strategy

Managing $2.9M in unfunded commitments:

J-Curve Management

Private Equity Value Creation Timeline
Year 1 Year 3 Year 5 Year 7+ +40% 0% -20% Capital Calls Value Creation Distributions Private Equity J-Curve Effect

5. Real Estate Holdings

Strategic property investments for income and appreciation

Real Estate Portfolio Overview

Total Value
$11.25M
All properties
Annual Income
$1.2M
Net rental income
Avg Cap Rate
10.7%
Portfolio yield
Leverage
40%
LTV ratio

Property Holdings Detail

Property Type Value Annual Income Cap Rate Leverage
Toronto Office Building Commercial $4,000,000 $400,000 10% 50%
Multi-Family Complex Residential $3,500,000 $420,000 12% 40%
Industrial Warehouse Industrial $2,000,000 $240,000 12% 35%
Retail Plaza Retail $1,750,000 $140,000 8% 30%
Total Portfolio Mixed $11,250,000 $1,200,000 10.7% 40%

Real Estate Strategy

Value Creation Initiatives

6. Philanthropic Foundation Strategy

Creating lasting impact through strategic giving

Foundation Structure & Benefits

The Anderson Family Foundation

Establishing a $10 million private foundation through donation of appreciated securities provides:

Benefit Value Impact
Tax Receipt $10,000,000 Donation credit over 6 years
Capital Gains Avoided $2,800,000 No tax on appreciated securities
Annual Grants $500,000 5% disbursement quota
Family Involvement 3 generations Board positions for family
Legacy Impact Perpetual Multi-generational giving

Securities Donation Strategy

Scenario Cash Donation Securities Donation Advantage
Donation Amount $10,000,000 $10,000,000 Equal
Capital Gains Tax $2,800,000 $0 $2,800,000 saved
Cash Required $12,800,000 $0 $12,800,000 preserved
Tax Credit $4,500,000 $4,500,000 Equal
Net Benefit -$8,300,000 -$5,500,000 $2,800,000 better

Foundation Investment Policy

Endowment Management Strategy

Grant-Making Strategy

Annual Foundation Disbursements
Focus Area Annual Allocation Number of Grants Impact Metrics
Education $200,000 20 scholarships Students supported
Healthcare $150,000 3 major grants Research funded
Arts & Culture $100,000 10 organizations Programs created
Environment $50,000 5 initiatives Carbon reduced
Total Grants $500,000 38 recipients Multiple impacts

7. Family Trust & TOSI Planning

Income splitting within tax rules

Family Trust Structure

Trust & Corporate Structure
David & Patricia Settlors/Trustees Anderson Family Trust Discretionary Trust 21-Year Rule Planning Anderson HoldCo Investment Income TOSI Compliant OpCo 1 Active Business OpCo 2 Real Estate OpCo 3 Investments Adult Children (3) Grandchildren (2) Future Beneficiaries

TOSI Compliance Strategy

Tax on Split Income (TOSI) Rules Navigation

Ensuring all distributions comply with TOSI exceptions:

Income Distribution Strategy

Beneficiary Age TOSI Exception Annual Distribution Tax Rate
Child 1 28 Works in business $150,000 35%
Child 2 25 10% shareholder $100,000 30%
Child 3 22 Capital gains only $50,000 20%
Spouse (Patricia) 53 Spousal exception $200,000 40%
Total Distributions - All compliant $500,000 33% avg

8. Tax Optimization Strategies

Sophisticated planning for maximum efficiency

Comprehensive Tax Strategy

Current Tax
$750K
Without planning
Optimized Tax
$450K
With strategies
Annual Savings
$300K
40% reduction
10-Year Savings
$3M+
Compound benefit

Multi-Strategy Tax Planning

Strategy Implementation Annual Tax Saving Complexity
Income Splitting Family trust distributions $120,000 High
Corporate Structure HoldCo tax deferral $80,000 Medium
Capital Gains Harvesting Strategic realization $40,000 Low
Charitable Donations Securities to foundation $35,000 Medium
Estate Freeze Lock in current values $25,000 High
Total Savings Combined strategies $300,000 -

Cross-Border Tax Planning

US Property & Investment Considerations

9. Estate Planning & Succession

Securing multi-generational wealth transfer

Estate Tax Projection

Estate Tax Liability Without Planning

Asset Fair Market Value Capital Gain Tax Liability
Business Interests $20,000,000 $18,000,000 $4,500,000
Real Estate $11,250,000 $8,000,000 $2,000,000
Investment Portfolio $13,750,000 $10,000,000 $2,500,000
Total Estate $45,000,000 $36,000,000 $9,000,000

Estate Planning Strategies

Tax Minimization Techniques

Business Succession Plan

Next Generation Transition

Structured transition of business interests to children:

Phase Timeline Actions Ownership Transfer
Phase 1 2025-2027 Training & mentorship 0%
Phase 2 2028-2030 Management roles 20%
Phase 3 2031-2033 Executive positions 49%
Phase 4 2034-2035 Full transition 100%

10. Family Office Structure

Professional wealth management infrastructure

Family Office Services

Annual Cost
$450K
1% of assets
Team Size
5
Professionals
Services
15+
Functions
ROI
3x
Value creation

Family Office Functions

Function Service Provider Annual Cost Value Proposition
Investment Management CIO + Analyst $200,000 Portfolio optimization
Tax & Accounting CFO + Tax advisor $120,000 Tax savings > cost
Estate Planning Legal counsel $50,000 Succession planning
Philanthropy Foundation director $40,000 Impact management
Administration Office manager $40,000 Operations support
Total Cost 5 professionals $450,000 Comprehensive

Family Governance Structure

Family Council & Decision Making

11. Risk Management

Protecting wealth from multiple threats

Risk Assessment Matrix

Risk Category Probability Impact Mitigation Strategy
Market Risk High $5-10M Diversification, hedging
Litigation Risk Medium $2-5M Insurance, asset protection
Tax Changes High $1-3M Flexible structures
Family Discord Low Significant Governance, communication
Key Person Risk Medium $5M+ Succession planning
Cybersecurity Medium $1-2M Security protocols

Insurance Portfolio

Comprehensive Coverage Strategy

12. Implementation Roadmap

Your action plan for the next 24 months

Implementation Timeline

Q4 2025

Foundation & Trust Setup

• Establish $10M foundation
• Create family trust
• Update estate documents

Q1 2026

Tax Restructuring

• Implement HoldCo structure
• TOSI compliance review
• Begin income splitting

Q2 2026

Investment Reallocation

• Increase PE allocation
• Real estate acquisitions
• Public portfolio optimization

Q3 2026

Family Office Launch

• Hire key personnel
• Establish governance
• Implement systems

Q4 2026

Succession Planning

• Begin transition process
• Next-gen engagement
• Review and adjust

Key Performance Indicators

Metric Current Year 1 Target Year 5 Target Year 10 Target
Net Worth $45M $48M $62M $85M
Annual Return 10% 11% 12% 12%
Tax Rate 37% 32% 28% 28%
Foundation Assets $0 $10M $15M $20M
Family Engagement Low Medium High Full

Your Path Forward

Building a lasting family legacy

Executive Summary of Recommendations

Your Ultra-High-Net-Worth Strategy

David and Patricia, your $45 million portfolio provides extraordinary opportunities for multi-generational wealth creation and philanthropic impact. This plan positions you to:

Your Legacy Awaits

Building wealth that transcends generations.

Let's Begin

The Anderson Family Office
Ultra-High-Net-Worth Strategy
Prepared September 2025

Important Disclaimer

This financial plan is provided for informational purposes only and does not constitute legal, tax, investment, or other professional advice. The strategies presented involve complex structures and significant risks. All projections are hypothetical and based on assumptions that may not materialize.

Private equity investments are illiquid and high-risk. Real estate values can fluctuate significantly. Tax laws and regulations are subject to change. TOSI rules are complex and require professional interpretation. Foundation establishment has permanent implications. Family trust structures require careful legal planning.

Before implementing any strategies, consult with qualified professionals including tax attorneys, chartered accountants, investment advisors, estate planning specialists, and family office consultants familiar with ultra-high-net-worth planning. International tax considerations require specialized expertise. Family governance and succession planning should involve all stakeholders.