February 23, 2021—Customized financing solutions can play a significant role in your wealth plan. In fact, an estate or succession plan that includes appropriate borrowing strategies can help preserve a family’s legacy and enable a more efficient wealth transfer from one generation to the next. In today’s podcast, Wilmington Trust Private Banking Group Manager Charlotte Philips discusses how you can use strategic financing to help work toward achieving your wealth transfer goals.

Related reading:
Intrafamily Loans: A Timely Wealth Transfer Strategy

M&T Emerald Advisory Services and Wilmington Trust Emerald Advisory Services are registered service marks and refer to this service provided by Wilmington Trust, N.A., a member of the M&T family.

The information provided herein is for informational purposes only and is not intended as a recommendation or determination that any tax, estate planning, or investment strategy is suitable for a specific investor. Note that tax, estate planning, investing, and financial strategies require consideration for suitability of the individual, business, or investor, and there is no assurance that any strategy will be successful.

Wilmington Trust is not authorized to and does not provide legal, accounting, or tax advice. Our advice and recommendations provided to you are illustrative only and subject to the opinions and advice of your own attorney, tax advisor, or other professional advisor.

The information in this podcast has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. The opinions, estimates, and projections constitute the judgment of Wilmington Trust and are subject to change without notice.

Borrowing with securities as collateral involves certain risks and is not suitable for everyone. A complete assessment of your individual circumstances is needed when considering a securities-based loan. You should review both the Securities-Based Lending Program Credit, Security and Guaranty Agreement and the Disclosure, Waiver of Conflict of Interest, Acknowledgment and Release carefully with your legal and tax advisors. Also consider the following:
• Credit secured by marketable securities can increase your level of market risk.
• The downside is not limited to the collateral value in your pledged account.
• Assets held in your accounts may lose market value or may be afforded less collateral value by the lender at any time, resulting in a collateral call.
• The collateral maintenance requirements can be increased at any time, which may result in a collateral call, and the lender is not required to provide you with advance written notice.
• You are not entitled to an extension of time on a collateral call.
• An increase to the variable interest rate will result in a higher periodic payment required and, if you are unable to make the higher periodic payment, could result in a collateral call.
• The sale of any securities in your account may be initiated, without contacting you, to meet a collateral call.
• Your ability to withdraw assets will be subject to the consent of the lender.
• The sale of your pledged securities may cause you to suffer adverse tax consequences. You should discuss the tax implications of pledging securities as collateral with your tax advisor. Neither M&T Bank Corporation, nor any of its subsidiaries, affiliates, or advisors, provide legal, tax or accounting advice. You should consult a legal and/or tax advisor before making any financial decisions.

All securities and accounts are subject to eligibility requirements. Certain restrictions and terms and conditions apply. Tax deferred assets are not eligible. Financing real estate with a securities-based loan or line of credit carries risk and may not be appropriate for your needs. Securities held in a retirement account cannot be used as collateral to obtain a loan.