Identifying and onboarding your next-generation executive.
A role in the family business isn’t necessarily a birthright. It is, however, a responsibility, and one that requires careful consideration on both sides. It’s possible your children don’t have the same talents and ambitions as you, but they may bring other interests and skills to the table. More importantly, your employees are counting on the company’s continued success and longevity. A potential role should be aligned with the individual’s unique goals and the long-term needs of the company.
Your child may be a “chip off the old block,” but it is unfair to assume they will be successful in the same ways you have been. Family expectations can cause undue pressure all around, possibly pushing people into positions that aren’t beneficial for the company or the individuals. You may wonder if it’s even possible for your successor to live up to your standards. Conversely, many young people are overconfident and may think the entrepreneurial “secret sauce” is already in their genes, not realizing how much work is required.
Knowing that each situation is unique, we have witnessed enough of these exchanges to have formed some helpful tips. Here are five strategies to help you prepare the next generation for the opportunity to lead your family business.
Start Young
It’s never too early to expose children to the business. However, your initial approach should be informal. You don’t want to create the expectation or assumption that your offspring will become CEO someday. The goal is simply to gauge each child’s interest and encourage open dialogue about the potential role they might play.
It’s important to be honest and discuss all possibilities without any expectation that your child will continue the family legacy. The goal is to empower (not pressure) them into a role that fits. Encourage them to start with internships or summer jobs. Remember, there are plenty of roles other than CEO that might be the best fit for them. You want to create a space where you can have open discussions about their interests, knowing those interests are likely to change with maturity and experience.
A good place to start is by looking for opportunities to take your child to work. One of my clients at Whittier Trust shared how when her kids were young, her son loved watching factory operations, while her daughter was intrigued by negotiations with vendors. Early on, each of them displayed curiosity that would later become more apparent interests aligned with their personalities.
Tell Your Story
That same client was also open with her kids about owning and operating a business. She wanted to be sure they understood the risks, rewards and personal sacrifices of entrepreneurship.
Talking about your origin story and lessons learned can be an approachable way to teach the next generation, while also assessing their thinking and problem-solving skills. How were you inspired to start your business? Who helped you? What opportunities did you seize along the way? What setbacks and failures did you overcome? After all, no career follows a perfectly straight path.
Sometimes we forget to tell those closest to us about the milestones that have shaped us. Storytelling can be a powerful way of including family in the business and understanding where they might fit.
Use Philanthropy as a Training Ground
Another way to build valuable skills that may apply to your family business is to involve your children in your family’s philanthropic efforts. Philanthropy draws on the same skills used in business, just applied in a different context. Making decisions around charitable giving is a safe way for family members to learn business concepts and gain experience in vital skills, such as reviewing financial statements, managing cash flow and analyzing the strengths and weaknesses of an organization prior to making an investment. It can also enhance your company’s values and reputation.
Philanthropy helps teach values in addition to skills. Another client recently told me their whole family discusses which organizations they’re going to contribute to and why. She said, “Each of our teenagers has to explain their thought process and confidently support their position.” This simple exercise helps the family to connect in a meaningful way, while providing a platform for younger generations to demonstrate their critical thinking skills and receive feedback from their elders.
Your financial advisors can be useful partners in setting up a family foundation, donor-advised fund or other philanthropic account. At Whittier, for example, we work with families to set charitable objectives that allow younger members to demonstrate increasing levels of responsibility and accountability.
Weave Mentoring Into Everyday Life
Never underestimate the value of kitchen table talk. Even a casual chat can give your family member a window into your work while letting you see how they think and respond. One client described a challenge he was facing at work over a cup of coffee with his daughter, then asked her, “If you were in my shoes, what would you do?” He was thrilled to report back that he’d had a big success with one of the creative ideas she’d proposed.
Non-family members can also be critically impactful mentors. Look for valued staff, friends and consultants who not only could be willing shepherds for your progeny, but also want to be.
A non-family mentor may also be the person most likely to run the business in the future. Creating bonds between your heirs and future company leadership before the idea of succession is in play can circumvent the awkwardness or frustration that may occur if a child feels passed over for the position. If the future leader has mentored your heir, there’s a better chance of mutual respect and support. This might naturally evolve into having an outside hire, such as a COO, succeed you in managing the business while your family members take on other meaningful roles within the company.
Prevent Sibling Rivalry
Wealth distribution can be a tricky topic when a family business is involved. For example, a child working in the business may receive a larger share of revenue than their siblings when the business is sold. It’s important to have honest and transparent conversations about wills and trusts with the whole family.
As a witness to many of these conversations, I strongly urge you to consider having your advisors and attorneys assist as facilitators. An experienced advisor can apply the lessons of past generations to help you usher in the next.
Written by Ashley Fontanetta, Senior Vice President, Client Advisor at Whittier Trust. Based in our Pasadena Office, Ashley specializes in philanthropic planning and administration.
If you’re ready to explore how Whittier Trust’s family office can work for you, start a conversation with a Whittier Trust advisor today by visiting our contact page.
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This prestigious designation celebrates Whittier Trust's global leadership in developing top-tier trust and estate advisors and sets a new benchmark for client-focused professional excellence.
Whittier Trust, the oldest multifamily office headquartered on the West Coast, today announced a historic achievement: the wealth management company has been named a Platinum Employer Partner by the Society of Trust and Estate Practitioners (STEP). In earning this distinction, Whittier Trust becomes the first U.S.-based firm to receive the prestigious designation, recognizing its industry-leading commitment to trust and estate advisor development practices.
This recognition underscores Whittier Trust’s dedication to excellence in client service. STEP’s Employer Partnership Programme (EPP) supports employers who prioritize professional development as a means to enhance the quality of advice and guidance provided to clients. By embedding continuous learning, reflective practice, and leadership-driven knowledge sharing across the firm, Whittier Trust ensures its professionals are equipped to deliver thoughtful, sophisticated, and tailored solutions for families and individuals managing complex wealth.
“At Whittier Trust, our ultimate goal is to serve our clients at the highest level,” said David Dahl, President and CEO of Whittier Trust. “Being named STEP’s first U.S.-based Platinum Employer Partner is an incredible honor and a meaningful milestone for our company. It reflects the dedication of our team and the value we place on deepening our expertise to better serve every client we work with.”
STEP, a global professional body with more than 22,000 members, fosters excellence in the trust and estate profession by connecting practitioners, sharing best practices, and promoting high professional standards. Platinum Employer Partners meet the program’s most rigorous standards, demonstrating leadership in professional development and a clear commitment to improving the client experience through well-trained, highly knowledgeable staff.
Whittier Trust delivers on this commitment through tailored mentorship programs, robust professional development, and leadership that actively shares knowledge, all of which directly enhance the quality of service delivered to clients by ensuring their advisors are informed, skilled, and equipped to meet complex trust and estate needs.”
“This recognition reflects the collaborative effort of our entire team,” added Dahl. “By continually enhancing our knowledge and expertise, we strengthen our ability to anticipate client needs, navigate complex planning challenges, and provide the thoughtful guidance our families and partners rely on.”
Whittier Trust joins a global network of Platinum Employer Partners recognized for advancing both professional development and client service excellence.
For more information about Whittier Trust, start a conversation with an advisor today by visiting our contact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
Whittier Trust’s Reno office honored by Nevada Women’s Fund for creating an empowering workplace culture and advancing opportunities for women through education, purpose-driven work, and family-first values.
The Whittier Trust Company of Nevada has been recognized by the Nevada Women’s Fund (NWF) as one of the Best Places for Women to Work in Northern Nevada in the NWF’s inaugural regional survey. The recognition highlights Whittier Trust’s ongoing commitment to fostering an inclusive, supportive, and empowering workplace for women in the wealth management company’s Reno office.
With this honor, Whittier Trust also earned special recognition in three key categories:
Empowerment Through Education: This recognition reflects Whittier Trust’s investment in continuous learning and professional development, ensuring every team member has opportunities to advance their expertise, leadership, and career growth.
Empowerment Through Purpose-Driven Work: This category highlights the company’s focus on meaningful, values-based work that connects employees to a larger purpose: serving families, foundations, and communities with integrity and long-term perspective.
Empowering Families: A Family First Workplace: This honor acknowledges Whittier Trust’s belief that strong families, both within the company and among the clients it serves, are the foundation of lasting success.
Whittier Trust was also recognized for its contributions to the Nevada Women’s Fund at the organization’s annual Celebrating Achievement Scholarship Dinner, where team members from Whittier Trust’s Reno office represented the company and met scholarship recipients from the University of Nevada, Reno. The event celebrated women pursuing higher education and leadership opportunities across the state, values deeply aligned with Whittier’s own commitment to empowerment and community advancement.
“These recognitions are a reflection of our people and the values that guide how we work together across all of our offices,” said David Dahl, President and CEO of Whittier Trust. “At Whittier, we believe that empowering women and fostering purpose-driven growth strengthens not only our team, but also the clients and communities we serve. We’re honored to be recognized by an organization that continues to make such a profound impact across Northern Nevada.”
The Nevada Women’s Fund’s Best Places for Women to Work in Northern Nevada survey, conducted for the first time this year, highlights organizations that exemplify inclusive leadership and equity-focused practices. Participating employers represent a collective workforce of more than 33,000 employees across Northern Nevada. Founded in 1982, the Nevada Women’s Fund has awarded more than $10.5 million in grants and scholarships to advance educational and career opportunities for women in the region.
For more information about Whittier Trust, start a conversation with an advisor today by visiting our contact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
After consecutive years of strong returns, global stock markets were expected to take a breather and slow down in 2025. Those expectations seemed to be on track during the first two quarters. After a solid start to the year, prospects of a global trade war raised the specter of a recession and led to a manic selloff in stocks. The worst fears on the trade front, however, proved to be ephemeral as trade tensions de-escalated and markets rebounded sharply.
After a topsy-turvy first half of the year, U.S. stocks have continued to climb one wall of worry after another in recent weeks. The resilience of the stock market has now propelled it to multiple new all-time highs. While investors cheer the wealth effect from higher stock prices, they also worry about some valuation metrics that are now at levels observed during the Internet Bubble.
The economic and market backdrop around us is replete with mixed signals that offer both cause for concern and reason for optimism. We briefly highlight and contrast some of these competing forces.
On a positive note, overall business activity in the third quarter appears robust, corporate profits are strong and impending fiscal and monetary stimulus are poised to act as tailwinds in 2026. However, the skeptics point out that most consumers are still struggling, the U.S. economy is narrowly propped up only by AI spending with pervasive weakness elsewhere, U.S. job growth has slowed considerably in recent months, and stock valuations appear to be alarmingly high.
We are sympathetic to the confusion arising from these mixed signals. We offer our readers more clarity on the state of the economy and the markets by examining these topics in greater detail and nuance. The four concerns above are divided into the following two themes of bifurcation and dichotomy. Bifurcations refer to extreme variations in a single metric while dichotomies highlight contrasts across multiple metrics.
The Bifurcated U.S. Consumer and Economy
Dichotomies in the U.S. Job Market and Stock Valuations
The Bifurcated Consumer
The eventual impact of tariffs on inflation is still unknown. As we have maintained throughout the year, we believe it will be more muted than most expectations.
Nonetheless, one of the regressive realities of the global trade war is that tariffs have adversely affected lower income households more than they have higher income households. Categories like food, toys, appliances, and furniture make up a bigger percentage of household expenses for these consumers and reduce their overall ability to spend.
However, this asymmetrical effect of tariffs on consumer spending across households is the more benign bifurcation theme for the consumer.
The other sad and socially undesirable reality of U.S. consumer spending is the uneven share of overall consumer spending across income categories. The U.S. consumer is incredibly bifurcated in this regard. The top 10% of households by income account for almost 50% of all consumer spending.
In this setting, even as most lower income consumers find it increasingly difficult to spend, their inability to do so only has a muted impact on overall consumer spending. In a labor market with few job losses, high income consumers continue to spend.
The “top-heavy” consumer also benefits from another powerful and asymmetrical tailwind, i.e. the wealth effect. High income consumers have higher home and stock ownership within the overall population. The stunning appreciation in home and stock prices in recent years has also triggered a disproportionately bigger increase in their net worth.
While most consumers are indeed struggling, the bifurcated high-end consumer is almost singlehandedly supporting U.S. economic growth.
The Bifurcated U.S. Economy
Here is a brief recap of economic activity in 2025.
The trajectory of GDP growth in the first half of 2025 mirrored the inversion in the stock market. Prospects of higher future tariffs led businesses to speed up their purchases of foreign goods in the first quarter of 2025.
As a result, imports rose sharply in that period. In the realm of GDP calculations, exports are additive to GDP and imports are detractors from GDP. The significant spike in imports played a major role in the final -0.5% GDP growth rate for the first quarter.
Not surprisingly, this trend reversed in the second quarter. Imports fell dramatically and consumer spending rebounded as consumers were spared the worst impact of tariffs. As a result, GDP growth in the second quarter was unusually strong at +3.8%. Therefore, combined GDP growth in the first half of 2025 was a modest +1.6%, an outcome far better than investors’ worst fears. In an even more remarkable development, estimated third quarter GDP growth is clocking in at a scarcely believable +3.9% rate as of mid-October.
The economic picture painted so far is hardly worrisome. Why then are consumers concerned about the economy when the overall numbers look respectable and even reassuring?
The answer to this question lies in another theme of divergence: In 2025, the U.S. economy is conspicuously bifurcated with limited leadership. The skeptics point out that the U.S. economy is being held up almost exclusively by investments and spending in AI, while the rest of the economy is stagnant and sluggish. More granular economic data bears this out and is remarkable enough to warrant a quick mention.
As the U.S. economy evolves, investment in information processing equipment and software has grown to about 5% of overall GDP. However, in the first half of 2025, it was responsible for more than 90% of GDP growth! The four “hyper-scalers” in AI (Microsoft, Amazon, Google and Meta) have spent more than $300 billion in capital expenditures for AI infrastructure in 2025. Absent this AI spending, GDP growth in the first half of 2025 would have been a meagre +0.1% instead of +1.6%. A stunning bifurcation indeed.
The sheer scale of such spending has raised fears of an “AI bubble” and the narrow base of the current economic launchpad has raised questions about the fragility and sustainability of GDP growth. In the worst-case scenario, investors worry that if all AI investments eventually come to naught, a deep recession and a prolonged bear market will inevitably follow. If AI ends up at other levels of hype short of the worst case, the outlook will still be quite negative.
The future of AI is a profound topic by itself and best addressed in a deeper dive within a future article. Our focus here is to highlight the unusual bifurcation in the U.S. economy and to analyze the risks that it poses in the future. We highlight two observations to defuse concerns about the current AI-fueled economy.
Not All AI Spending is Speculative
First, we assess if all AI investments and companies are in a speculative bubble already. We believe that we are not in a pervasive AI bubble at this point. Most of the companies at the forefront of large AI investments enjoy strong revenues, profitability and free cash flow. However, the payoff from this spending will clearly have to come from higher productivity growth in the future.
History has shown that productivity has generally moved higher during periods of growth and innovation. The desired pattern of rising productivity growth is already playing out in this current postpandemic cycle of technological innovation.
Productivity growth was low in the aftermath of the pandemic and has risen meaningfully since then. We believe we are still in the early innings of the AI revolution and expect productivity to rise for several more years. We assign a low probability to a future outcome where most AI spending eventually proves to be unproductive or even useless.
While these observations speak to the overall AI outlook, there are some serious caveats to bear in mind. Speculative “mini bubbles” are already building up in the technology and AI space. There are several unprofitable technology companies that are up over 100% this year. There is a fair share of companies that are trading at Price-to-Sales ratios of over 100!
Somewhat alarmingly, a tangled, opaque, complex, and circular web of investing and financing is now emerging within a small group of AI players. We urge extreme caution in investing in this space and encourage our readers to steer clear of speculation, fashions and fads.
More Diversified Growth Drivers in 2026
Second, we believe that the drivers of economic growth in 2026 are about to get diversified beyond this narrow AI leadership. It is estimated that the One Big Beautiful Bill will add about $300 billion in fiscal stimulus to the U.S. economy in 2026. Investors can also expect monetary stimulus to play out in tandem with fiscal stimulus. The Fed has resumed its easing cycle in the face of a weaker job market and will likely cut interest rates 2 or 3 more times in the coming months. The administration may also be able to embark on some of its pro-growth deregulation initiatives.
The market has already detected and priced in this shift in economic drivers. Earnings estimates have been revised higher, prices have risen on future growth expectations and, most importantly, the market is now rewarding a broader swathe of sectors, such as small cap stocks and cyclical stocks, ahead of this broadening of growth drivers. These developments also help explain the latest spurt in the Price-toEarnings multiple for the broad market; Prices have already moved in anticipation of eventually higher future Earnings.
We move to the closing half of the article to highlight some dichotomies in the job market and stock valuations. We believe these insights may allow investors to view their concerns on the two topics in a different light.
Dichotomies in the Job Market
The current weakness in the U.S. job market is well recognized and a source of concern to many. Major declines in job growth have often led to a weaker consumer, lower spending, increased layoffs and a substantial rise in unemployment … all key ingredients in the recipe for a recession.
We agree that this conventional extrapolation would normally be problematic. We have already seen the beginning of this potential sequence. Job growth has tapered off substantially from May onwards; we are now officially in a “No-Hire” job market. But what about the knock-on effects listed above? Are they proceeding along conventional lines, or is there a dichotomy at play in the job market?
We observed earlier that third quarter GDP growth is galloping ahead at an estimated +3.9%. Clearly, we are not seeing a big decline in consumer spending. The paradox of weaker job growth and yet solid consumer spending is partially explained by the bifurcated consumer above; it is also explained by unusual employment trends.
The "No-Hire, No-Fire" Job Market
For all the upheaval and turmoil in 2025, the unemployment rate has stayed remarkably steady between 4.1% and 4.3%. Even more strikingly, the employment-to-population ratio for people in the prime 25-54 working age group has held rock-steady in the 80-81% range throughout the year. These unusual employment outcomes can be traced to the dichotomy between new hires and layoffs in 2025.
We show these two metrics in Figure 1.
Figure 1: New Hires and Layoffs in 2025
Source: Bureau of Labor Statistics, Challenger, Gray and Christmas, 3-month moving averages, as of Aug-Sep 2025
We show more stable trends in new hires and layoffs by computing 3-month moving averages in Figure 1. The dark blue bars show new hires; the light blue bars show layoffs. This visual depiction alters the narrative on the job market in a meaningful manner.
When layoffs mounted from government spending cuts in early 2025, job growth was still strong; when job growth declined meaningfully, so did layoffs. The current level of layoffs is in line with a normal economy and no worse. We describe the current state of the job market as a hyperbolic, but succinct, oneliner: “Nobody’s getting hired, and nobody’s getting fired!”
There are important implications of this “No-Hire, No-Fire” job market. Most consumers are still gainfully employed. When people have a job, they can continue to spend. The headlines so far have focused mainly on the “No-Hire” component of the job market. The “No-Fire” addendum to the storyline is an important circuit-breaker in the normal cycle of no jobs, weak consumer, low spending, big layoffs, high unemployment and an eventual recession.
We believe the dichotomy between new hires and layoffs is useful in understanding the true state of the labor market and its potential impact on the economy.
Dichotomies in Stock Valuations
We observed at the outset that some valuation metrics today are close to levels seen in the Internet Bubble at the turn of the century. The Forward Price-toEarnings ratio (“Forward PE”) is one such metric. The Forward PE ratio is derived by dividing today’s price by the next 12 months of earnings.
The Forward PE was just above 23 at the peak of the Internet Bubble; it has hovered in the 22-23 range for the last several weeks. This high valuation has investors worrying about another “bubble” … a stock market valuation bubble whose collapse may trigger a -30% decline in stock prices.
We acknowledge that the current Forward PE of 22.4 is undeniably elevated. However, we believe it is nowhere close to being a bubble. We assign a low probability to a devastating broad-based bear market triggered by valuations alone.
We support our bold, constructive outlook above by drawing on one more dichotomy to compare valuations in 2025 and 1999.
While the Forward PEs are similar, there is one big difference in company fundamentals. U.S. companies have led the world in innovation over the last few decades. As a result, they are also significantly more profitable than before.
Figure 2 shows how Forward PEs and net profit margins have changed over time.
Figure 2: Forward PEs and Net Profit Margins
Source: Bloomberg, as of Q2 2025
The dark blue line represents the Forward PE, and the light blue mountain chart shows net profit margins.
We see that profit margins have risen steadily over time. The sporadic breaks in profitability coincide with recessions such as the ones seen during the Global Financial Crisis and the pandemic. Companies are almost twice as profitable today as they were 25 years ago; margins have grown from 7-8% back then to 13-14% today. The steady growth in profit margins, in turn, has created higher returns on equity and higher organic earnings growth.
The dichotomy in profitability between the mid-2020s and the late 1990s in large part refutes any credible parallels in the risks of high valuations between the two eras. We view those high valuations as more speculative; today’s valuations are more supported by fundamentals. We expect valuations to come down gradually over the next few years but without creating a major price decline as earnings continue to grow.
We hope these brief discussions provide additional insights and allay some of the concerns related to jobs, valuations and bubbles.
Summary
We recognize that the job market has become weaker in recent months, AI is an unusually large part of the economy right now, and stock market valuations are on the high side. Nonetheless, we do not foresee a major economic slowdown or stock market setback for the following reasons.
Consumer spending is disproportionately driven by the bifurcated high-income consumer, who continues to spend on the heels of strong income and wealth effects.
While AI spending is largely supporting current economic growth, growth drivers will become more diversified in 2026 to include fiscal stimulus, lower interest rates and deregulation.
Weaker job growth has been offset by fewer layoffs. As consumers keep their jobs in a “NoHire, No-Fire” job market, they are able to maintain their spending.
Current stock valuations are less speculative and more supported by higher profitability and stronger company fundamentals. We see little risk of a stock market crash based on stock valuations alone.
We do see pockets of speculative activity and frothy prices in some technology and AI stocks. We avoid low quality companies in general at all times; we are especially careful about circumventing them now in this area. We see few opportunities for outsized gains in the backdrop of relatively high valuations. We remain vigilant and careful in managing client portfolios during these complicated times.
To learn more about our views on the market or to speak with an advisor about our services, visit our Contact Page.
Clear communication and structure are essential for high-net-worth families to protect their assets.
Even the best players need a coach—and a playbook. For ultra-high-net-worth families, that playbook, called family governance, is the key to successfully stewarding wealth and family businesses from one generation to the next.
Of course, each family is unique, so there are no set plays. But advisors at a multi-family office have the coach’s advantage of seeing the entire playing field, observing interactions, knowing which players to call in for different situations, and enlisting trusted experts to keep everyone in top form and build a strong team culture.
To create strong, functional family governance, it’s vital to take four key steps (in this order, since subsequent steps build on the previous ones):
Step 1) Establish a shared vision and mission.
Some families already have a mission statement for their business, but they've never articulated a personal mission from a family standpoint. Creating shared objectives is crucial to ensure that all family members are aligned, and it’s often helpful to have an unbiased advisor who individual family members can speak to in private.
Step 2) Create a family governance structure.
Once shared values and goals have been identified, families can start to create a more formalized structure to guide future decision-making. This may include a family council or board of directors as well as policies, procedures, and practices for successful communications. It could even take the form of a family constitution.
Step 3) Develop a family education program.
A customized financial literacy program can bring the next generation or new family members (such as spouses) into the fold and help them take an active role in wealth management discussions. Depending on what level is needed, advisors can provide tailored lessons to cover everything from managing credit card debt to hiring guidelines for those working in the family business.
Step 4) Set up your family office.
If your wealth is causing infighting or confusion, or your business is strained by family dynamics, it’s probably time to offload personal matters to a family office. Some ultra-high-net-worth individuals create their own single-family, brick-and-mortar office with staff and resources they personally oversee. Others choose a multi-family office solution that provides comprehensive services to multiple clients at a time. The latter offers a much more economical structure and has the advantage of more resources and a broader perspective.
Working with Advisors to Create Structure: A Case Study For Why It Matters
Not long ago, a new client at Whittier Trust asked us to manage the investment of $32 million in earnings from their family manufacturing business. Soon after, they requested help with their personal finances as well. As part of that process, our team was doing an estate plan review and identified a major issue. With nine family members involved in the family business, significant shares of the company would change hands if anyone died—enough to potentially destroy the business. Yet each of them had created their own separate estate plans without considering these ramifications.
We discovered that some of the family members weren’t even on speaking terms, so repairing those dynamics had to be the first priority. After selecting one of our consultants to mediate, each family member got to speak their mind and share their individual concerns. In the meantime, the Whittier team was working behind the scenes with the estate planning attorneys. We eventually got all family members, attorneys, and consultants to the table to discuss business succession, which seemed like a small miracle.
Three generations were working in the family business and had established a rule that no one could own shares unless they worked there. One of the brothers had four children, none of whom worked for the family business, so none of his ownership could be passed down when he died; it would have to be bought back by the company. Another sister had no kids and planned to donate her shares to charity through the family foundation. But because of the buy/sell agreements, the company would have to buy those shares.
Under the current structure, we showed them that there wouldn’t be enough cash on the balance sheet to buy all the shares within their natural lifespans. The company couldn't survive. It was a jaw-dropping moment for them to realize their structure was not sustainable.
In the end, they all made a decision to move forward collectively as a family unit and align their estate plans. The business is no longer in danger from the necessity of buybacks and can continue to thrive. And we got word later that all three generations went on a family ski trip together, something they hadn’t done in 15 years.
This is why, putting on our coaches’ hats, we remind clients that each of the four steps is essential: creating a shared mission, structure, education plan, and family office. Since 1989, Whittier Trust has used this model to help wealth generators pass down their assets and businesses with confidence to their children and grandchildren. Establishing solid family governance practices takes time and patience, but once the standards are developed, they can last for generations.
Written by Brian Bissell, Senior Vice President and Client Advisor at Whittier Trust. Brian is based out of the Newport Beach Office where he provides a full range of wealth management, family office, philanthropic, real estate, and trust services.
To learn more about how a multi-family office can help steward your family's wealth, 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.
Executive Vice President Whit Batchelor joined a panel of industry experts to share insights on New Zealand residency options.
Whittier Trust recently hosted a webinar examining the growing interest among American families in New Zealand residency — a trend that has surged more than 100%. The discussion explored how New Zealand’s political stability, wealth planning advantages, natural beauty, and welcoming culture make it an attractive option for global families seeking strategic flexibility.
Featuring experts from Malcolm Pacific Immigration, Adventure On, and JBWere, the panel offered practical insights into visa pathways, lifestyle considerations, and investment opportunities. Watch the full recording below to learn more about how Whittier Trust helps clients with strategic wealth planning.
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.
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.
Whittier Trust's Seattle office honored for exceptional workplace culture while celebrating 60 years in the region and 25 years serving local clients.
Whittier Trust’s Seattle office has been named one of the Best Places to Work in Washington in 2025 by the Puget Sound Business Journal. This is a testament to the wealth management firm's strong culture of client service, innovation, and collaboration.
"Being recognized again as one of Washington's Best Places to Work is a testament to the dedication of our people," said David Dahl, President and CEO of Whittier Trust. "Our culture is one of our greatest strengths, and the key to our success is our employees. We know that it is our culture that allows us to consistently exceed the goals and objectives that our clients and their families expect. This honor reinforces our core belief of putting people first, both in our firm and in the communities we serve."
For 25 years, Whittier Trust's Seattle office has served clients in the Pacific Northwest, building on the firm's 60-year legacy in the region. Whittier Trust is deeply committed to community engagement, supporting local institutions and philanthropic initiatives.
"Our team is proud to continue Whittier Trust's long-standing presence in the Pacific Northwest," said Nick Momyer, Senior Vice President, Senior Portfolio Manager, and Northwest Regional Manager. "We see ourselves not just as wealth advisors, but as active partners in strengthening the families we serve and in strengthening our community. That sense of purpose is what makes our workplace so special."
As Whittier Trust celebrates its sixth decade in the Pacific Northwest, the multi-family office remains dedicated to a legacy of providing trusted, personalized wealth management and family office services, all while honoring a commitment to the communities Whittier Trust calls home.
If you're interested in a career at one of the top workplaces in Seattle, visit our Careers Page to learn more and find a position that may fit you.
For more information about Whittier Trust's wealth management and 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.
Whittier Trust Celebrates Rising Leaders Jessica Guzman and William Dodds, Highlighting the Firm’s Commitment to Developing Next-Generation Talent.
Whittier Trust, the oldest multifamily office headquartered on the West Coast, proudly announces the promotions of Jessica Guzman and William G. Dodds to the roles of Vice President in the firm’s Newport Beach office and Seattle office, respectively. Both are recognized for their dedication to delivering comprehensive wealth management solutions and building lasting relationships with clients and their trusted advisors.
“Will and Jessica exemplify the kind of leadership, professionalism, and client focus that define Whittier Trust,” said David Dahl, President and CEO of Whittier Trust. “These promotions recognize their contributions and the meaningful impact they make every day for the families we serve. Our mission is to serve families for generations, and developing professionals who combine expertise with genuine care is key to achieving that mission.”
Jessica Guzman
Jessica Guzman has been with the Newport Beach office for over three years. As Vice President, she will partner with high-net-worth individuals and families to accumulate, manage, and preserve wealth across generations, with expertise in trust administration, family office services, and comprehensive financial planning.
“Jessica’s technical knowledge, client-centered approach, and dedication to excellence make her a standout advisor,” said Greg Custer, Executive Vice President and Orange County Administration Manager. “Her promotion highlights the difference that committed professionals can make for families seeking long-term wealth management.”
Jessica holds the Certified Financial Planner® (CFP®) and Certified Trust and Fiduciary Advisor (CTFA) designations and is pursuing her MBA at UCLA Anderson School of Management.
William Dodds
Will Dodds began his career with the firm’s Seattle office as an intern in 2018. As Vice President, he provides guidance, strategy, and solutions across investment management, trust, philanthropy, and family office services.
Nick Momyer, Senior Vice President and Northwest Regional Manager, said about William: “It’s been exciting to see William’s journey from intern to this leadership position. William backs up a genuine commitment to his clients with a real commitment to building relationships with their families and advisors. His promotion reflects the value he brings to families in the region and across Whittier Trust’s services.”
In addition to his professional responsibilities, William is pursuing his MBA at the University of Washington’s Foster School of Business and serves as Seattle Chapter Lead for The Scooty Fund, a nonprofit promoting mental health awareness among young adults.
These promotions demonstrate Whittier Trust’s focus on developing talented advisors who deliver personalized solutions, foster enduring relationships, and uphold the firm’s long-standing tradition of service and trust across generations.
For more information about Whittier Trust, start a conversation with an advisor today by visiting ourcontact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
A role in the family business isn’t necessarily a birthright. It is, however, a responsibility, and one that requires careful consideration on both sides. It’s possible your children don’t have the same talents and ambitions as you, but they may bring other interests and skills to the table. More importantly, your employees are counting on the company’s continued success and longevity. A potential role should be aligned with the individual’s unique goals and the long-term needs of the company.
That same client was also open with her kids about owning and operating a business. She wanted to be sure they understood the risks, rewards and personal sacrifices of entrepreneurship.
Never underestimate the value of kitchen table talk. Even a casual chat can give your family member a window into your work while letting you see how they think and respond. One client described a challenge he was facing at work over a cup of coffee with his daughter, then asked her, “If you were in my shoes, what would you do?” He was thrilled to report back that he’d had a big success with one of the creative ideas she’d proposed.
