Whittier Trust further strengthens its rapidly growing San Diego team with veteran trust and estates advisor, Kiley Barnhorst MacDonald.
Whittier Trust is pleased to welcome Kiley Barnhorst MacDonald as Senior Vice President and Client Advisor, based in the firm’s new San Diego office. With more than 30 years of experience at the intersection of the legal, corporate, and nonprofit sectors, Kiley is a trusted advisor to ultra-high-net-worth individuals and families. She is widely respected for her ability to navigate complex family dynamics and multigenerational planning with a steady hand and thoughtful, practical insight.
A San Diego native and fifth-generation Southern Californian, Kiley brings a coveted combination of legal acumen, strategic planning, and financial analysis to her work, tailoring each relationship to reflect the specific values and goals of the individuals and families she serves. Her multidisciplinary background allows her to approach wealth management with both technical depth and a personal touch.
“Kiley brings the kind of deep expertise and authentic connection that makes a lasting impact,” said Whit Batchelor, Executive Vice President, Client Advisor, and San Diego Regional Manager at Whittier Trust. “She’s already a trusted voice in our community, and her arrival is a meaningful step forward in building our San Diego presence with intention and care.”
Before joining Whittier Trust, Kiley served as Senior Vice President, Senior Trust Advisor at Northern Trust Wealth Management. She also practiced in La Jolla at Albence & Associates and the Law Offices of W. Neal Schram. Kiley holds a JD from UCLA School of Law and a BA in Economics from Dartmouth College. She is a California State Bar Certified Specialist in Estate Planning, Trust, and Probate Law.
Beyond her professional accomplishments, Kiley is a dedicated community leader who has served on the boards of several nonprofit and educational organizations. She has been recognized by the Legal Aid Society for her pro bono efforts supporting families in probate court.
Whittier Trust opened its San Diego office earlier this year to meet the needs of a growing client base in the region. With Kiley now on board, the firm continues to build a team of top-tier professionals who combine technical excellence with an unwavering commitment to client service.
For more information about Whittier Trust, start a conversation with an advisor today by visiting ourcontact page.
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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.
Whittier Trust Grows San Diego Team and Fortifies Its Commitment to the Entrepreneurial Spirit with the Addition of Ted Fogliani.
Whittier Trust is pleased to announce the addition of Ted Fogliani as Vice President of Business Development in the firm’s San Diego office. A veteran entrepreneur and former CEO with over 25 years of experience building successful companies in eCommerce, SaaS, manufacturing, and logistics, Ted brings a dynamic mix of strategic vision, operational leadership, and a deep-rooted commitment to client service.
Ted joins Whittier Trust after serving as Founder and CEO of ShipCalm, a tech-enabled logistics company supporting eCommerce brands. There, he played a critical role in shaping the company’s growth strategy, culture, and customer-centric approach to supply chain management. Prior to ShipCalm, Ted spent two decades as Founder and CEO of a leading electronics manufacturing company, overseeing the production of medical devices, consumer electronics, and critical national defense systems.
“Ted’s background as a founder and operator gives him a unique lens into the needs, concerns, and aspirations of the entrepreneurs and business owners we serve,” said Whit Batchelor, Executive Vice President, Client Advisor, and San Diego Regional Manager at Whittier Trust. “He’s walked in their shoes. That perspective, combined with his strategic acumen and leadership experience, makes him a powerful advocate for our clients and a natural fit for our team.”
Throughout his career, Ted has championed the idea that long-term value is built by hiring great people and rallying them behind a clear vision. At Whittier Trust, he’ll focus on fostering meaningful relationships with families and founders across Southern California, helping them navigate the complex intersection of personal wealth and business leadership.
A lifelong Californian and long-time resident of the San Diego area, Ted and his wife Monica have raised their four children in Carmel Valley and Del Mar. They remain active in the community and are passionate supporters of organizations such as the San Diego Police Foundation and Boys to Men Mentoring.
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.
Celebrating its 25th anniversary in 2025, the Whittier Trust Seattle Office continues to grow and strengthen its family office services with experienced CPA, Philip Cook.
Whittier Trust is proud to welcome Philip Cook as Vice President and Client Advisor in the firm’s Seattle office. A seasoned advisor with more than 18 years of experience in tax, estate planning, trust administration, and family governance in both California and Washington State, Philip joins the Pacific Northwest team of The Whittier Trust Company of Nevada, where he will serve ultra-high-net-worth families in both Seattle and Portland.
Philip brings to Whittier Trust a distinctive blend of technical expertise and personal insight, shaped by 12 years in public accounting with time at Deloitte and Andersen Tax, followed by six years as Director and Senior Director at Pacific Trust Company. There, he led the firm’s consulting practice, guiding families through the most complex aspects of estate structures, fiduciary oversight, and multi-generational planning.
“Philip's background as a CPA, combined with his leadership in trust and estate advisory work, aligns perfectly with Whittier Trust’s integrated and personalized approach,” said Nick Momyer, Northwest Regional Manager, Senior Vice President, and Senior Portfolio Manager at Whittier Trust. “He has a great ability to balance analytical rigor with a deep understanding of family dynamics, qualities that are central to the work we do.”
As Whittier Trust celebrates 25 years of service in Seattle and 60 years of dedication to the Pacific Northwest in 2025, Philip's arrival underscores the firm’s continued investment in its Seattle office and long-standing commitment to delivering comprehensive family office solutions across the region.
Philip holds a Bachelor of Arts in Economics from the University of California, Santa Barbara, and a Master of Accountancy from California State University, Fullerton. He is a licensed Certified Public Accountant (CPA) in Washington State. Originally from Southern California, Philip has called Seattle home since 2014, though he continues to spend time in Southern California working with clients and visiting family.
For more information about Whittier Trust, start a conversation with an advisor today by visiting ourcontact page.
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JoshElcik’s appointment reflects continued growth and a firm-wide commitment to a secure and seamless digital experience for Whittier Trust clients.
Whittier Trust is pleased to announce the addition of Josh Elcik as Senior Vice President and Director of Information Technology. A seasoned technology executive with more than two decades of experience leading at the intersection of innovation and operational strategy, Josh brings a depth of expertise in designing and implementing enterprise technology systems. He will be based in the firm’s Pasadena office.
Josh’s appointment comes at a time of meaningful expansion for Whittier Trust. As the firm continues to grow, so too does the demand for technology that is not only secure and scalable but also intuitive and responsive to the evolving needs of clients and their advisors.
“Josh joins Whittier Trust with a mandate to further modernize and fortify the systems that underpin our business,” said Thomas J. Frank Jr., Whittier Trust Executive Vice President and Northern California Regional Manager. “His leadership will help ensure we continue delivering the high-touch service our clients expect, supported by the kind of thoughtful, future-ready infrastructure that quietly powers it all.”
Over the course of his career, Josh has led large-scale digital initiatives across diverse industries, including financial services, energy, and media, each with a focus on long-term efficiency and enterprise agility. He is known for building high-performing global teams, championing cross-functional collaboration, and architecting integrated platforms that elevate both performance and compliance.
“I’m drawn to Whittier Trust’s legacy of excellence and its culture of precision and care,” said Josh Elcik. “Technology is most effective when it disappears into the background, empowering people to do their best work, and enabling clients to experience a seamless, secure relationship with their advisors. That’s the standard, and that is what we’re always building toward.”
Josh earned his degree in Management Information Systems from Texas Tech University. He maintains a deep interest in emerging technologies, data governance, cybersecurity, and adaptive organizational strategy.
Josh’s appointment reflects Whittier Trust’s ongoing investment in people, systems, and strategies that sustain exceptional client service in a complex and fast-moving world.
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.
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’stailored investment strategies can work for you, start a conversation with a Whittier Trust advisor today by visiting our contact page.
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Who will manage your real estate portfolio when you’re no longer able to?
Families with significant real estate holdings tend to have complex wills and trusts, and transitioning a real estate portfolio after the head of a family passes can be an intricate and stressful process.
“At Whittier Trust, our goal is to help families hold on to their assets, not just sell them,” says Thomas J. Frank, Executive Vice President. “We want to build a relationship, understand your portfolio and intentions for the future, and get plans in place long before succession becomes an issue, while the wealth builder of the family is still alive and running things.”
While many asset managers avoid direct ownership of real estate assets, the Whittier team has decades of experience in a wide variety of property ownership scenarios and structures. “For example,” Frank says, “Sometimes real estate is owned directly in the family trust. By moving the assets into structures like LLCs, we add a layer of liability protection and more easily segregate ownership interests.”
Charles Adams III, Executive Vice President and Manager of Whittier Trust’s Real Estate Department, provides some other examples. “Some families have vacant land,” he says, “and then we have to decide whether that's a long-term hold because it's not creating income. It might be a liability, or it might be a very productive property with a good tenant and strong rental income, but the lease will be expiring soon. Then we’d need to discuss whether the family wants to sell it or retain it depending on the tax situation, cost basis, and the market.”
The Next Best Thing to Family
Whether you hope to have a family member take over the business or you need an unbiased fiduciary partner like Whittier—or both—the time to start making a plan is today. “We work with your attorney and accountant to ensure the properties are owned in flexible yet durable entities,” Frank explains. “We sit beside you as you manage the business so we can understand your style and priorities and be ready to step in if necessary.” Whittier Trust is primed to communicate with beneficiaries, tailoring conversations and reports to each family member's level of involvement and interest. When necessary, the team of advisors oversees property managers, making sure leases are renewed, repairs are made, capital improvements are considered, and new tenants are found.
“You need to have a capable, engaged team in place,” Adams adds. “You need brokers, appraisers, leasing agents, salespeople, and financing people, just to name a few, and Whittier can provide all of those with appropriate oversight. A lot of times, the family patriarch or matriarch has been serving in all these roles themselves. That’s fine, except that it may not provide for succession in the family.”
Adams notes that there are often differing levels of interest from the next generation—some may never have had an interest in the business or the opportunity to learn the business. “That's where Whittier Trust comes in,” he says. “We have a strong network of resources and systems for handling these affairs, no matter how complicated. We offer whatever level of support is needed, from full management oversight to simply serving as backup. As one client recently told me, Whittier is ‘the next best thing’ to family.”
Tailored to Each Family’s Capacity
One example Adams shares is of a family who owned a number of industrial properties. The parents, in their late 80s, had named a daughter to act as successor co-trustee alongside Whittier Trust. But in private, the daughter asked the Whittier team to do all the decision making, saying she would sign off on whatever was recommended. Although that request didn’t align with Whittier’s goals to keep family involved, Adams and his team understood that she was overwhelmed—that she didn't know as much about real estate as her parents might have assumed. So they set up a de facto board that she could be a part of to gradually learn about the business while also having voting rights.
“We’re also happy to work with families that haven’t managed to plan ahead, though of course it’s much more difficult,” Adams says. One client, for example, came to Whittier Trust when the patriarch was already experiencing memory loss. They owned an office building with nearly 50 tenants, but the tenants were no longer getting consistent services because the father didn’t realize he couldn’t manage it by himself anymore. The two adult children relied on the income from this property, but that income was drying up because tenants were leaving or simply not paying rent. So the Whittier team had to go in, sort it out, and get everything running smoothly again.
No matter what the situation, when Whittier Trust serves as a trustee, our role as a fiduciary means we will implement what's in the best interest of all the beneficiaries and the properties without bias. Our deep experience working hand-in-hand with real estate-owning families is a proud distinction of Whittier’s 40-year history as a boutique multi-family office, and our very favorable client-to-advisor ratio is the hallmark of our business. We take pride in our role as stewards of your family’s legacy.
To learn more about how Whittier Trust can make a difference for you and your loved ones, 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.
In a recent roundtable discussion hosted by the San Diego Business Journal, Whit Batchelor, Executive Vice President and San Diego Regional Manager at Whittier Trust, joined fellow Southern California wealth management professionals to address the most pressing questions facing clients today.
How do I strategically incorporate philanthropic vehicles like a donor-advised fund or family foundation into my comprehensive wealth management plan and overall asset allocation?
Integrating philanthropy into your wealth management strategy requires thoughtful coordination between your giving goals and tax planning. Private foundations and donor-advised funds offer powerful legacy-building opportunities, but with important distinctions in tax treatment and governance that must inform your selection.
Strategic asset selection can significantly enhance tax efficiency. Non-income producing assets like car collections, vacation properties, or significant artwork often represent ideal philanthropic contributions–potentially providing substantial deductions while converting non-cash-flowing assets into charitable impact. We approach this holistically, viewing your wealth across three dimensions: assets inside your estate, outside your estate, and within philanthropic entities.
This integrated perspective allows us to optimize your philanthropic impact while creating meaningful tax advantages and preserving family values across generations.
I’m considering splitting my time between California and other locations. What strategic tax planning approaches should I implement to legitimately minimize my California income tax exposure?
California residents approaching business transitions or retirement often have unique opportunities to optimize their tax situation while fulfilling lifestyle goals. Strategic planning around residency can yield significant tax advantages–particularly when spending time in non-income tax states like Nevada, Washington, Texas, and Florida.
Proactively establishing non-California trusts or entities prior to significant liquidity events can dramatically reduce tax exposure when selling business interests. Similarly, establishing legitimate residency in no-income-tax states before drawing on retirement accounts can preserve substantial wealth.
We emphasize that “asset location” is as critical as asset allocation in comprehensive wealth planning. This includes thoughtful positioning of assets across various jurisdictions to leverage beneficial tax treatment both inside and outside high-tax states like California–creating long-term advantages while supporting your desired lifestyle.
I’ve built a substantial portfolio of investment real estate that has appreciated significantly, creating potential estate tax exposure. What sophisticated strategies would you recommend for transferring these properties to my children in a tax-efficient manner?
California’s remarkable real estate appreciation over recent decades has created both opportunity and challenge–with many families holding properties now exceeding lifetime estate tax exemptions. The goal becomes transferring these high-value assets to future generations while addressing several competing concerns.
Effective strategies must balance estate tax minimization with maintaining control and preserving cash flow during your lifetime, while also considering California’s property tax implications. Tools like Spousal Limited Access Trusts (SLATs), intentionally defective grantor trusts, and qualified personal residence trusts can be particularly effective.
Strategic discounting through family limited partnerships or LLCs can further enhance transfer efficiency. These sophisticated approaches allow significant real estate value to move outside your taxable estate while retaining income streams and influence–preserving both wealth and your desired lifestyle during retirement.
Our family’s wealth has grown substantially in both value and complexity. What solutions should we consider for streamlining this complexity and ensuring seamless continuity if either of us becomes incapacitated or passes away?
As family wealth grows in complexity, what was once intellectually stimulating can eventually become burdensome–especially as priorities shift toward lifestyle enjoyment rather than wealth management. This challenge becomes particularly acute when responsibility has primarily rested with one spouse, potentially creating significant stress for a surviving partner.
Multi-family offices provide an elegant solution by offering comprehensive services that address both investment management and administrative complexity. Services like bill payment, household accounting, bookkeeping, tax coordination, and compliance management create a seamless infrastructure that functions reliably regardless of family circumstances.
This integrated approach ensures continuity during difficult transitions and provides peace of mind that your affairs will be managed according to your wishes–protecting both your surviving spouse and future generations from administrative burdens that they may be unprepared or unwilling to shoulder.
Answers provided by Whit Batchelor, Executive Vice President and San Diego Regional Manager with Whittier Trust.
If you have more questions about philanthropic planning, real estate strategies, tax-efficient wealth transfers, or simplifying complex family finances, 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.
In investing, “value” is a word that’s used often but rarely understood in depth. It is not just a price tag, an item on a balance sheet, or a line on a chart. Rather, value is a complex blend of trust, expectation, and the interplay between certainty and speculation. The recent surge in gold prices to record highs—driven by central banks seeking safe havens and investors responding to global uncertainty—has reignited a timeless question: What is something truly worth?
As a result, we’re sharing more about the logic of value across asset classes, moving from the most predictable to the most speculative, and revealing how different forms of value are calculated, perceived, and ultimately believed.
Bonds: The Arithmetic of Certainty
Bonds are the bedrock of financial predictability. These instruments are essentially contracts: You lend money, receive regular interest, and—assuming no default—get your principal back at maturity. Their valuation is rooted in arithmetic:
Present Value of Future Cash Flows: Each coupon payment and the return of principal are discounted to today’s value using prevailing interest rates.
Yield to Maturity (YTM): This is the expected rate of return if the bond is held to maturity.
Credit Spreads: Non-government bonds require higher yields to compensate for additional credit risk.
While factors like inflation, interest rate changes, and shifts in creditworthiness add complexity, bonds remain anchored in accountability and well-defined terms. They represent the closest thing to certainty in the investment world.
Real Estate: Tangible and Local
Real estate offers visibility and utility. Properties can provide income through rent and often appreciate over time. Valuation in real estate relies on several methods:
Comparable Sales (Comps): What have similar properties sold for in the area?
Income Approach (Cap Rate): Calculated as Net Operating Income divided by Property Value, this method is key for income-producing properties.
Replacement Cost:What would it cost to rebuild the property today?
Real estate is about more than numbers; it’s about neighborhoods, tenants, and local narratives. While the fundamentals are solid, they are never static. Location can create value, while a poor tenant can erode it. The reverse is also true. The asset’s tangibility and the potential for steady cash flows make real estate a unique blend of predictability and variability.
Stocks: Ownership with Imagination
Owning a stock means holding a claim on a company’s future earnings, decisions, and relevance. Unlike bonds or real estate, stocks are inherently forward-looking and subject to interpretation. Key valuation methods include:
Discounted Cash Flow (DCF): Projecting a company’s future cash flows and discounting them to present value based on risk and time horizon.
Sum of the Parts (SOTP): Valuing each underlying business or asset separately to determine the overall worth.
Earnings Multiples and Dividend Models: Using metrics like price-to-earnings ratios or dividend discount models to gauge value.
Stock prices swing on earnings reports, macroeconomic shifts, and geopolitical events. Yet, in the long run, fundamentals—such as earnings growth—tend to prevail. Successful investors are those who can distinguish signal from noise and think in years rather than days.
Gold and Precious Metals: The Value of Belief
Gold sits at the far end of the valuation spectrum. It generates no income and pays no dividends, yet it endures as a store of wealth. Its value is driven by:
Scarcity: Mining is slow and costly, and supply is limited by nature.
Macroeconomic Trends: Inflation, currency debasement, and global uncertainty boost demand.
Market Psychology:In times of turmoil, investors seek gold for safety, not returns.
Recent years have seen gold prices soar to historic highs, with forecasts for 2025 ranging from $3,000 to nearly $3,700 per ounce as central banks and investors seek protection from economic and geopolitical risks. Unlike other assets, gold’s value is almost entirely a matter of belief—that is, confidence that others will continue to see it as a safe haven when other systems falter. In this sense, gold is as much about philosophy as it is about finance.
Value, Reconsidered
Tracing the arc from bonds to gold is a journey from definition to interpretation—from contractual returns to collective belief. Each step reveals not just how we price assets, but how we understand risk, reward, and resilience.
Warren Buffett famously said, “Price is what you pay. Value is what you get.” But what you get depends on how well you understand what lies beneath the numbers. In a world obsessed with immediacy, the ability to think in fundamentals-across asset classes and through market cycles-is a quiet but powerful advantage.
Ultimately, value is not just a calculation. It is a reflection of human judgment, emotion, and conviction—qualities that no formula can fully capture. At Whittier Trust, we understand value, both in the mechanics of strategically selecting assets that make sense based on our clients’ present needs and future legacy goals, but we also make it our business to understand each client’s underlying concerns.
Written by Caleb Silsby, Executive Vice President, Chief Portfolio Officer at Whittier Trust. Caleb oversees a team that collaboratively manages portfolios for high-net-worth clients, foundations, and endowments. He is credentialed as a CFA Charterholder and CFP professional.
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.
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Investing is a balancing act between risk and reward in the best of times, but today’s uncertain economic climate and fluctuating markets present an unprecedented challenge for investors. While some people choose to stay with traditional options like money market funds and government bonds, others are taking on more risk with hard-money lending and alternative investments – everything from cryptocurrency to classic cars.
“Given the volatility in the equity markets, some investors are reducing risk in their portfolios due to a slowing economy, stubborn inflation, and uncertainty around trade policies,” said Dean Byrne, regional manager of The Whittier Trust Company of Nevada, which has offices in Reno, Portland, Seattle, and Austin, Texas. Byrne said the U.S. is currently in a “risk-off” environment, in which investors are more risk-averse and are selling assets like stock and moving their money to lower-risk options. As a trust management company, Whittier Trust offers a wide range of financial services. Its investment management team handles core assets, such as equities, fixed income and real estate.
In general, Nevada follows national trends in investing, such as increasing interest in digital assets like cryptocurrency, which have become widely accepted, even by institutional investors and hedge funds. Technology is also driving increased interest in companies that supply the energy needs and the physical infrastructure (think data centers) for the growing artificial intelligence (AI) sector. “We see an enormous amount of capital being deployed into public and private AI investments on the expectation of continued growth and attractive returns,” said Byrne.
The migration of wealthy Californians to Nevada is changing the nature of investing in the Silver State, according to Nevada Secretary of State Francisco Aguilar, whose office performs registration and oversight of securities, securities brokers and dealers, and investment advisors. “Enclaves like the Summit Club in Summerlin bring the investor-minded type of individual to Nevada, and with that comes more opportunity to invest in private placement deals, real estate offerings, private credit offerings, cryptocurrency, gold and silver,” he said. “[These new residents] are sophisticated investors who are looking to diversify their portfolios. There’s more investing in Nevada now than in previous years because these people bring their money and their investment portfolios with them.”
One option for savvy investors looking for diversification is hard money lending. “We specialize in private lending, with multiple lenders joining together to fund loans on Nevada real estate,” explained John Blackmon, owner/broker of NV Capital Corporation, a private lending and investment brokerage based in southern Nevada. “Our property-backed hard money loans make financing available on a wide variety of single-family and multi-family homes, business buildings, and land for development. Many people choose a trust deed investment because they are looking for more secure, high-yield returns. If properly structured by a specialized broker, trust deed investments have the potential to yield favorable returns – especially when you look at other investment options with similar risk profiles. That’s because your risks are mitigated by the value of the property being used as collateral against the loan.”
People who don’t mind taking some additional risk may consider any one of a number of alternative investments. “Alternative investments are a broad asset class, but narrow down to investments outside of traditional cash, bonds and stocks,” said Byrne. “Real estate, cryptocurrencies, blockchain, private equity, hedge funds, commodities, even collectibles like art, coins and classic cars, fall into the alternative investment bucket.”
Byrne pointed out that owning a business could also be considered a form of alternative investment, with its own level of risk and reward. “Business owners usually reinvest all their profits into their own company,” he said. “In essence, they’re investing in one stock, and they’re comfortable with that risk. Yes, it may keep them up at night sometimes, but they know it inside and out, and it’s familiar.”
He added that Nevada provides a better opportunity for multi-generational wealth creation than other states because it doesn’t have an estate tax and it offers favorable laws allowing a business owner to transfer business interests into a trust. “Gifting interests in a family business to the next generation is a powerful tool, and if structured appropriately, allows for succession planning, building and protecting family wealth, avoiding probate, and reducing taxes,” he said.
What Should New Investors Know?
“What I tell my children and grandchildren is that they can still get about 4 percent in a US Treasury mutual fund,” said Blackmon. “That’s a good place to be right now. It’s fairly risk-free, and at least your money is making something. Be a little disciplined and every so often move some money from a regular bank account to a money market fund to get some interest. Then, if you have some money to invest and don’t mind a little risk, you can get into a small deal with a trust deed. One of my kids did that and they enjoy driving out and looking at their collateral.”
Byrne recommended that new investors start with a clear goal. “What are you trying to accomplish? Are you investing for retirement, a large future purchase, building wealth or simply creating a shoot-for-the-moon portfolio – one with high risk and potentially high reward? If that investment goes to zero, you have to be okay with that. Higher risk should come with a higher return, but it doesn’t always work as planned. Most people want investments that enable them to sleep at night.”
He advised new investors to think long-term and be prepared to weather the short-term ups and downs of the market. “It’s important to remember the adage: ‘Time in the market is better than timing the market,’” he said. “In the first week of April, [the stock market] had some pretty rough days. Then, with the announcement that tariffs were being delayed for 90 days, the S & P jumped seven percent, just like that. Nobody could have predicted that amount of volatility or timed it appropriately. Just start early and invest consistently, in good times and bad times. Long-term investments lead to appreciation and compound interest.”
Aguilar would advise a new investor to perform their due diligence before trusting anyone with their money. “Research who will be managing your money and guiding your investments,” he said. “Call the Secretary of State’s office to verify that they’ve been licensed. Doing the verification process will save you a lot of heartache. If the investment vehicle is complicated, get someone to explain it to you in terms you can understand, and trust your gut. If it sounds too good to be true, it isn’t [true].”
Avoiding Fraud in a Dangerous World
While there is a certain amount of risk in any investment, a very real risk is becoming a victim of a fraudulent investment scheme. Aguilar reported that in fiscal year 2023, his Securities Division received complaints of securities fraud from investors totaling more than $16 million, and in fiscal year 2024 that number was almost $10 million. Fraud cases are investigated by the Securities Division and prosecuted by the state attorney general and county district attorneys.
“We’re especially looking out for what’s called ‘pig butchering,’ which typically targets males with a social media presence,” Aguilar said. In this scheme, scammers build relationships with victims through social engineering to lure them into investing in fake opportunities or platforms, ultimately leading to financial losses. They “fatten the pig before slaughter” by getting them to make increasing monetary contributions, generally in the form of cryptocurrency, to a seemingly sound investment before the scammer disappears with the contributed monies.
“When that happens, people are often embarrassed to tell us that they’ve been the victim of investment fraud,” said Aguilar. “In addition, many of the fraudsters are located overseas and it’s hard to get jurisdiction over these individuals. What we can do is make sure the marketplace is educated about these issues so they don’t fall victim to them.” He advised investors to make sure they are dealing with a licensed advisor or a broker-dealer with a good reputation – someone who’s a part of the industry, not just a random person who contacted them online.
“Find a reputable financial advisor to guide you,” said Byrne. “Read the fine print about their fee structure and any proposed investments. Don’t be afraid of getting a second opinion.”
Blackmon advised people considering hard-money lending to ask to see an appraisal or a broker price opinion on the property. “That will give you a third-party valuation that the property is worth more than the proposed loan amount,” he said. “Be sure to go with a company with experience in real estate lending, and in my opinion, you should go with a brokerage company that uses a third-party service to collect the monthly payments from the borrowers and distributes them to the investors. Unscrupulous brokers may otherwise divert the payments to their own account and be tempted to use that money for other purposes. It’s just one more level of protection.”
Aguilar noted that, although reported losses to fraudsters total millions of dollars each year, victims of fraud often lose their entire life savings and are not compensated. Many guilty parties in securities cases do not have any money to pay court-ordered restitution to their victims. In FY 2023, investors received restitution of only $205,000 and in FY 2024 it was just over $1 million. His office is supporting a bill in the Nevada Legislature this year that aims to fill the gap between the restitution that’s owed to victims and what they actually receive. Senate Bill 76, entitled “Victim Restitution Act,” would create a fund from monies received from enforcement actions due to violations of the Nevada Securities Act (NRS 90). Nevada residents who have received an award for restitution in a criminal conviction can apply for restitution from the fund if they don’t get repaid from the fraudster.
“The main reason we are proposing this legislation is that it provides a way for Nevada residents to obtain desperately needed relief after losing what is often a significant chunk of their savings to someone who has defrauded them,” said Aguilar. “Often, victims of securities fraud are in the most vulnerable communities, especially our senior communities and others on fixed incomes.”
"Safe" is Relative
Aguilar advised potential investors to discuss the level of risk with their money manager and decide what they’re comfortable with. “100 percent safe would be putting cash in your mattress, but even then, you run the risk of theft,” he said. “Putting your money in an FDIC-insured checking or savings account is safe, but there’s the opportunity cost of giving up a chance for appreciation, and inflation may erode the value of your principal. Medium-risk may be S&P 500 stocks, and high-risk would be private-party deals or hard money investments. You should only take high risks if you have the capacity, and if it won’t change your lifestyle if you lose your investment.”
“Safe is a relative term,” agreed Byrne. “Cash in a low-yielding, FDIC-insured bank account has risks of eroding your purchasing power due to the effects of inflation.”
What's Ahead?
“Right now, we have a fairly new president and there are some unknowns about tax policy and other things,” said Blackmon. “We’re not sure if that will lead to more investments in real estate or to fewer people willing to invest. This spring, things have slowed down for us because of uncertainty on the macro level. If you’re thinking of building an $83 million building, you’d be a little nervous to start. You may want to wait a few months before investing, to see which way the wind is blowing and what interest rates will be doing. Some people say tariffs won’t cause interest rates to rise, but it seems to me that increasing costs will lead to an increase in interest rates. I’m looking forward to being proved wrong. It will be interesting to watch what’s ahead in the next six months. I still look to the US government, even with whatever issues are going on right now. It’s the best country in the world.”
Featured in Nevada Business Magazine. For more information on Whittier Trust's investment services and portfolio management strategies, start a conversation with a Whittier Trust advisor today by visiting our contact page.
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is pleased to welcome Kiley Barnhorst MacDonald as Senior Vice President and Client Advisor, based in the firm’s new San Diego office. With more than 30 years of experience at the intersection of the legal, corporate, and nonprofit sectors, Kiley is a trusted advisor to ultra-high-net-worth individuals and families. She is widely respected for her ability to navigate complex family dynamics and multigenerational planning with a steady hand and thoughtful, practical insight.
