Photorealistic rendering of large office building. — The Children's Hospital of Richmond at VCU Wonder Tower will open in the spring of 2023, offering world-class health care in a dedicated space for children.

What a Wonder!

State-of-the-Art Pediatric Care Comes Under One Roof in Richmond

World-class children's healthcare isn't just about the services you provide, it's about how and where you provide them. Children's Hospital of Richmond at VCU's (CHoR) newest building, the Wonder Tower, is designed to provide a special kind of care in a safe space specifically designed for children.

CHoR has been treating the children and families of Richmond for 122 years. Currently, pediatric inpatient and emergency services are in the same facilities as adult care on VCU Medical Center's downtown campus. Once complete, the Wonder Tower will bring a child's entire care team under one roof, allowing for greater collaboration.

The Wonder Tower, set to open in spring 2023, is adjacent to the existing outpatient Children's Pavilion in downtown Richmond. The state-of-the-art facility will be roughly one million square feet, spanning the length of an entire city block. Care for children will be moved out of the adult hospital into a dedicated space for children that will provide the full spectrum of inpatient, emergency, trauma, surgical, imaging, and outpatient services.

The new facility will also house CHoR's emergency department and services, including the area's only Level 1 pediatric trauma center. Currently, 40% of CHoR's inpatient admissions come through the emergency department. "In many ways, the emergency department is essentially the front door of CHoR. We want to earn trust the moment a patient walks through the door. Often, that starts with a welcoming, child-friendly, unintimidating waiting area to help put the patient and family at ease during a difficult time," says Dr. Frank Petruzella, head of the emergency department at CHoR.

Group of nine people wearing construction hats holding large donation check. — Dr. Michael Rao (center) welcomed Pat Collins, TowneBank Richmond president, and Bob Aston, TowneBank executive chairman, on a tour of the Wonder Tower, set to open in the spring of 2023.

Beyond clinical care, the new space will provide private rooms and dedicated parking, as well as amenities like playrooms, teen lounges, performance space, a multifaith chapel, Ronald McDonald House family rooms, and even a family gym. The new facility will also feature a three-story indoor garden atrium and will serve brick oven pizza and soft serve ice cream in the cafeteria.

In 2021-2022, Children's Hospital of Richmond at VCU was ranked nationally by U.S. News and World report among the best children's hospital for cancer, nephrology, pulmonology, and urology care. TowneBank is proud to partner with CHoR in support of the Wonder Tower, a facility that will enhance care for families in our community, as well as make the hospital and region a magnet for talent.

"We have the utmost appreciation for companies, like TowneBank, that step up to support the overall mission of the hospital, recognize the importance of emergency services and understand the tremendous impact CHoR has on the entire community," says Dr. Petruzella. "Donations like this from TowneBank tells us that our community is behind us and supports our mission to bring the best possible care to the community."

You can learn more about CHoR and the Wonder Tower at Campaign.CHRichmond.org.

"Our community is behind us and supports our mission to bring the best possible care..."

Close up photo of a plate of food. — Shagbark's menu features dishes that take a modern approach on up-south cuisine.

Serving Local, Seasonal Cuisine at Shagbark

Award-winning restaurant, Shagbark, brings the community together around the table. Located in the Libbie Mill-Midtown area near Staples Mill Road and Broad Street, the highly acclaimed Richmond restaurant offers a twist on tradition while showcasing the bounty of locally sourced food.

Photo of Chef Walter Bundy standing next to a restaurant table. — Chef Walter Bundy opened Shagbark in 2016, an award-winning Richmond restaurant with a mouth-watering menu. Shagbark, located in Libbie Mill-Midtown, is open Tuesday through Saturday for dinner service.

Chef Walter Bundy opened the restaurant in 2016. A Hampden-Sydney graduate, he worked at the Blue Point restaurant in the Outer Banks following college. "I saw some people really enjoying what they were doing, using fresh and local seafood and produce. It was exciting to think that it might be something I could do, too," Walter says.

From there, Walter worked at Coyote Café in Santa Fe before completing culinary school in Vermont. After graduation, he worked at chef Thomas Keller's awarding-winning restaurant, The French Laundry, in Napa before returning to the east coast to begin work at Lemaire restaurant inside the Jefferson Hotel in Richmond.

Bundy's vision to offer local, seasonal cuisine with exceptional service came to life at Shagbark. "Virginia is a wonderful state with amazing locally grown food products. I wanted to create a restaurant that reflected and highlighted all it has to offer," Walter says.

The Shagbark name was inspired by a shagbark hickory tree that grows along the banks of the Lower James River. Walter describes the restaurant as a "seasonally driven concept celebrating Virginia's best produce farmers, fishermen, and artisans." The menu changes frequently and every ingredient is meticulously thought out and locally purchased.

Shagbark has received the highly coveted AAA Four Diamond rating each year since 2017, except for 2021 when ratings were given due to the ongoing pandemic. The restaurant has also been recognized by Wine Spectator and Taste of the South magazines.

"We had to shift to a completely different model during COVID, offering take-away food options alongside navigating PPP loans," recalls Walter. "The TowneBank team, specifically Duncan Owen and Matthew Scott, were instrumental in helping us remain in business. They did not let us slip through the cracks. They held our hand until we got to the other side."

The TowneBank location at Libbie Mill is right around the corner from Shagbark. "I love visiting the bank and seeing familiar faces," says Walter. "TowneBank makes me feel like I matter. Virginia's finest is what we bring to the table, and TowneBank serves up the same for us."

Check out the menu and make a reservation by visiting Shagbark's website, ShagbarkRVA.com.

"TowneBank makes me feel like I matter. Virginia's finest is what we bring to the table, and TowneBank serves up the same for us."

Photo of flying helicopter silhouetted against a sunset

United Equipment Corp is a leading supplier of airframe components, specialty materials, and UAV systems to the aerospace and defense industry.

United Equipment Corp — Proudly Supporting the Armed Services

Growing up, Trace Higgins watched his father create and run a successful timber and logging company. He learned firsthand about the hard work and responsibility of ownership, but also of the pride in accomplishment, which eventually motivated him to follow in his father's footsteps. "I knew I wanted to go down that road, too. That someday, I wanted to own a business of my own," he says.

Trace Higgins purchased United Equipment in 2020.

A Virginia native and current Chesterfield resident, Trace received undergraduate and graduate degrees from the University of Virginia and is a licensed Professional Engineer. He pursued a successful engineering career including work with Bigge Crane and Rigging designing custom cranes and lift systems, but in the fall of 2019, Trace decided the time was right to pursue his aspiration of business ownership. While researching potential opportunities, he was introduced to Matt Clarke, president of TowneBank Chesterfield. "Matt was invaluable during the research and purchase process," says Trace. "He offered advice on business suitability and, once I made a decision, he oversaw every step of the loan process. When Covid hit, I wasn't sure if the deal would go through, but he was there at every step, which allowed me to focus on completing the purchase." Flash forward to the late spring of 2020, and Trace successfully purchased United Equipment, Inc. with Matt's support and counsel.

Founded in 1960, United Equipment, Inc. manufactures replacement aircraft parts and specialty components primarily for military equipment. In fact, the U.S. Government is one of their primary customers, and the company has a long history of proudly supporting the armed services. Their products are used in fixed-wing planes, jets, and helicopters such as the C-130 Hercules, KC-135 Stratotanker, UH-60 Blackhawk, CH-47 Chinook, and B-52 Bomber. United Equipment produces a wide range of products including windows, floor panels, electrical components, and ergonomic items. "We are one of a handful of companies that focuses on the more custom, sometimes handcrafted, parts that cannot easily be mass produced. We also make some unique, and pretty interesting, items such as the chin rest that the boom operator uses when performing a mid-air refueling," says Trace.

United Equipment initially drew Trace's interest due to his manufacturing and engineering background but, after further investigation, he discovered the unique and vital role the company played in supporting the military, and the pride and dedication to quality and craftsmanship shared by its employees, which helped confirm his choice. Building on those aspects, Trace has continued to focus on supporting the military with high quality replacement parts while also slowly expanding the company's product line and manufacturing capabilities. Employees continue to take great pride in the company's mission, in developing technical solutions to new manufacturing challenges, and in exceeding customer expectations. Since Trace took over ownership two years ago, the company has experienced incremental growth and Trace's outlook for the future remains optimistic. "It's definitely been an interesting ride so far, especially with the pandemic," says Trace, "But we have a solid and core business and I can't wait to see where we go from here."

"Trace's dream was to own a business," says Matt. "It felt good that TowneBank could be part of helping make that happen."

Learn more about United Equipment on their website, UnitedEquipCorp.com.

Photo of medical worker looking into a microscope.

DAV offers a comprehensive approach to skin care, from medical and surgical dermatology, to laser treatments and blue light therapy.

Dermatology Associates of Virginia

Looking Beyond the Surface for Complete Skin Health

For decades, Dermatology Associates of Virginia (DAV) has been committed to providing compassionate, high-quality care for patients throughout central Virginia.

The practice was founded by Richmond native Dr. Charles Caravati, Jr. in 1969. He started in a small office on Hamilton Street in the near West End, and soon after moved to a house on Grove Avenue. Since then, DAV has grown to 22 providers, including 16 dermatologists, three physician assistants, and two nurse practitioners, at six locations in central Virginia. With over 250 years of combined experience, the team at DAV offers several quality, cost-effective treatments to their patients. They treat and manage a variety of skin diseases, and offer a diverse selection of surgical options, including cryosurgery, electrosurgery, and the highly specialized Mohs surgery. Additionally, the practice offers services like laser hair removal, and cosmetic treatments like sclerotherapy and chemical peels.

In 2017, DAV decided to become one of the first general dermatology practices in the state to build an in-house Mohs micrographic surgery suite. This highly effective treatment allows a specially trained Mohs surgeon to remove cancerous areas from the skin while preserving the maximum amount of healthy tissue possible resulting in a better patient outcome.

"It was a big renovation and undertaking for us, and we were happy to have solidified our relationship and financing with TowneBank," says Rachel Downey, practice administrator at DAV.

Since then, the demand for DAV's services has grown, leading them to add a second surgeon. "They are considered a market leader in central Virginia," says Matthew Scott, senior vice president and private banking officer at TowneBank.

DAV is the founding member of MD Value Care, an organization of independent physician practices in Richmond that works to provide the highest quality of care and experience, while remaining cost-effective for patients. All providers at DAV are members of local, state, and national dermatology and medical professional societies, and all doctors are certified by the American Board of Dermatology.

Additionally, DAV is committed to the community through several outreach projects. For example, the practice helped facilitate a grant from the American Academy of Dermatology to install a sunshade at Our Lady of Lourdes Catholic school.

TowneBank is honored to be DAV's financial partner, supporting their efforts to provide skin care health to patients throughout central Virginia. "There is nothing like the professionalism and friendliness that I've experienced with TowneBank," says Rachel. "One of my personal philosophies is to do business with people that I respect and trust. That has always been the case with TowneBank."

To learn more about Dermatology Associates of Virginia, visit www.dermva.com.

Photo of three people standing at a barbershop chair.

Vince Wood, Towne Wealth Management; Hugh Campbell, owner; and Pat Collins, president TowneBank Richmond, (l. to r.) gather to reminisce about the John Marshall Barber Shop where Hugh has cut hair since 1982.

Richmond Barber Shop Has Groomed the A-List

Vince Wood and Pat Collins, both at the TowneBank Gateway Plaza location, recently discovered they share a piece of personal history with each other and with notables Bruce Willis, President George H.W. Bush, U.S. Senator John Warner, numerous Virginia governors, and countless legislators: each has gone to local legend Hugh Campbell for haircuts at The John Marshall Barber Shop. What began in 1967 as an 18-month apprenticeship for the barber led to a remarkable 55 years-and-counting at the Richmond institution, including his 1982 purchase of the shop.

Still located on the first floor of the former Hotel John Marshall, the barber shop originally opened its doors for business on a fateful day in American history: October 29, 1929. Since that Black Tuesday of nearly a century ago, most Virginia governors have enlisted the shop's services, as have a wide variety of "A-list" celebrities from Cab Calloway to Elvis Presley; John Wayne to Sidney Poitier; Redd Foxx to Vincent Price; Franklin Roosevelt to Winston Churchill; Arthur Ashe to Moses Malone, to name a few.

Open weekdays for "cuts, shaves and shines", the shop has been fully restored to its original 1929 aesthetic, save the newer maroon barber chairs added in 1969. Only a few years later, both Vince Wood and Pat Collins would enter The John Marshall Barber Shop to sit in those maroon chairs for their inaugural cuts.

When twelve-year-old Vince needed a stylish cut suitable for his older sister's 1972 wedding, his dad knew exactly who to call, his own downtown barber, Hugh Campbell. Hugh proved to be the right man for the job, and he will, on request, produce evidence: a vintage wedding photo featuring Vince's handsome cut. Pat's earliest trip to Hugh in the 1970s was memorable in its own way for the preteen: a trip with his dad across the James River into a bustling downtown Richmond retail district, for services at a regionally renowned hotel barber shop four blocks from Virginia's State Capitol.

In the years to follow, both young men would join their fathers on trips downtown from Chesterfield for monthly cuts, often accompanied by brothers requiring Hugh's services too. Unlike Pat's shorter stint at the shop, which ended in high school, Vince (or "V" as Hugh calls him) has continued there for a full five decades now. "After all these years, it's safe to say Hugh knows more about me than most folks do," remarked Vince of his lengthy patronage, which also included two other pre-wedding day cuts (his wedding and his daughter's).

Vince's customer loyalty is no anomaly, as most of Hugh's client base has entrusted him with their barbering needs for 40 years or more. The affable, ever-smiling Hugh Campbell will tell you his profession "has never really been what [he] would call work", and he's quick to add he'd retire his scissors tomorrow if he had to work in silence, as cutting and conversation go hand in hand. For Richmond's beloved barber, business has always been much more about growing long relationships than about shortening hair.

Two people standing in front of a fence and holding a large donation check.

Ty Crone, private banker at TowneBank (right), presents a check to Gordon Macgill of Love Serving Autism.

Serving Up Love to Children and Adults with Autism

In 2019, Gordon Macgill hung up his corporate loafers and put his tennis shoes back on with the hope of impacting and changing lives. Gordon worked for Capital One for almost 20 years. One day he was overwhelmed with the feeling that there was another calling for him. Soon after, Gordon became a teacher at The Faison Center, a nonprofit that gives children and adults with autism and related challenges the best opportunity to live rich and fulfilling lives. Gordon began helping teens look for employment after finishing school. He also served as a counselor at The Faison Residence, a semi-independent living community for adults with autism and other developmental disabilities.

During the pandemic, Gordon connected with the owner of a private clay court in Richmond, and he agreed to help fix up the court so it could be used by the community. The court belongs to the La Fratta family, and 50 years ago, Charles La Fratta built the red clay tennis court on his West End property. Charles passed away in 2009, but Gordon connected with his daughter, Mary, who wanted to honor her father by fixing up the court and offering it to the community.

While fixing up the court, Gordon reconnected with his first tennis coach. Through networking and connections his path led him to Lisa Pugliese-LaCroix, the founder and director of Love Serving Autism (LSA) in Florida. He then pitched the idea of starting a satellite clinic in Richmond. Soon after, Gordon became a certified tennis instructor. In the fall of 2021, the Richmond chapter of Love Serving Autism offered its first clinics. In December 2021, Gordon was selected as LSA's Coach of the Month.

Photo of an adult helping a child hold a tennis racquet. — Love Serving Autism reaches children of all ages with the excitement of learning how to play tennis.

Shortly after, word of the tennis clinics spread throughout the community, and Gordon was contacted by an old friend, TowneBank private banker, Ty Crone, who had heard about Gordon's tennis clinics. Gordon met Ty in 1985 when they played tennis together in 8^th grade for Tuckahoe Middle School. As they entered Freeman High School together, they continued their friendship and tennis partnership, which won Freeman a State Championship in 1989.

Through his friendship with Gordon, Ty recognized an opportunity for TowneBank to support the Richmond community. TowneBank approved a sponsorship as the first corporate donor for the local charity. Ty presented Gordon with a check to commemorate the occasion. Gordon says the gift from TowneBank blew him away. Gordon adds, "The gift from TowneBank is so beneficial because it will allow programming in the winter. Now we can rent indoor courts and offer very affordable tennis lessons year-round."

As Gordon looks back on his journey, he says he took a leap of faith, and the path revealed itself. He believes, "God intersected all of these things because I had faith and I put myself out there."

For more information, visit LoveServingAutism.org.

Five people gathered around an outdoor dining table.

Mahood Fonville, Scott Shaheen, John Martin, and Scott Ruth (l to r) join TowneBank senior vice president Ty Crone (center with laptop).

Celebrating Five Years of Growth — Shaheen, Ruth, Martin & Fonville

On May 11^th, Shaheen, Ruth, Martin & Fonville (SRMF) celebrated their five year anniversary. In just five short years, SRMF has established themselves as the Who's Who in Richmond's luxury real estate market. SRMF opened their first office in May 2017 on Ridge Road in Richmond. By October 2018, they opened their second office on Grove Avenue, and their accelerated growth continued with the opening of their third office in Bon Air in September 2019. In 2020 and 2021, their expansion extended south into Irvington and Williamsburg. They are one of the first real estate firms to open a branch office in Colonial Williamsburg. To date, the firm has 186 agents across five offices, and they employ a staff of 12.

SRMF is a full service real estate firm with a relationship focus, seeking to create lasting connections beyond each real estate transaction. They believe that helping people buy and sell their biggest asset requires trust, and understanding the client's needs, so building a relationship is very important to make the transaction go smoothly. The firm uses technology, marketing, and networking to create an unmatched experience for their agents and clients.

SRMF has been voted in the Top 3 for Best Real Estate Firm in Central Virginia, by Virginia Living Magazine, for five years in a row. In 2021, the firm hit a record $975 million in sales with over 2,150 transactions. The owners say they feel "very fortunate and very lucky. We took a leap of faith and the stars aligned for us. Our timing with the market was perfect."

The owners of Shaheen, Ruth, Martin & Fonville decided to start their own company because they wanted to create a culture and brand that was local. They love the city of Richmond for its "unique and vibrant" flair, and they want their clients to feel a connection to the Richmond community.

Each owner brings a unique perspective and skillset to the company. Mahood Fonville brings over 25 years of experience and his expertise as a compliance officer. Scott Ruth has 20 plus years of experience as a leader in training and contract verbiage. John Martin is the marketing leader of the company with over 20 years of experience and the inspiration behind the company logo. Scott Shaheen has over 32 years of experience and he facilitates operations; he handles hiring staff and takes the lead on all things financial, from accounting to commissions. Together, they offer over 100 years of experience to their agents.

All four owners of SRMF are active real estate agents, which sets them apart from other firms. They are in the field, in the trenches every day, just like their agents. This gives them a unique perspective in the marketplace. They understand firsthand what their agents deal with in the current market, which allows them to identify and problems quickly and creates efficient management.

The owners share that the agents and staff are the heartbeat of the company and the main reason for their accelerated success. They hire top notch agents and provide training at an advanced level, which motivates the agents to succeed at a higher level. The agents and staff have also created a culture that everyone wants to be a part of.

SRMF believes in being good stewards of the community, so they find many ways to give back. They are an annual supporter of SpeakUp5K event held by the Cameron K. Gallagher Foundation, which raises awareness of teen depression and anxiety. They also support the World Pediatric Project, headquartered in Richmond, which helps heal and provide life-saving care for critically ill children in developing nations.

SRMF has a unique connection to TowneBank. When the owners opened the firm in 2017, they asked private banker, Ty Crone, to be their personal banker. Scott Shaheen worked with Ty's father, Mike Crone, from 1997 until 2008, when Mike retired, and Scott Ruth has known Ty Crone since kindergarten. In 2018, TowneBank mortgage loan officer, Jennifer White, moved her office to SRMF's Grove Avenue location. Jennifer serves as the firms in-house loan officer and the owners say her contributions and expertise are invaluable.

SRMF says their relationship with Towne is tremendous because everything is local, "It's easy to reach out and speak with someone; everyone at the bank is easily accessible." The company also works with Travis Law of Towne Insurance as their preferred insurance broker.

SRMF commends TowneBank for the personal service they provide. Scott Shaheen says, "Yes, we recommend TowneBank not only for mortgage and insurance, but all banking needs. The bank provides tremendous support all around."

For more information, visit SRMFRE.com.

Four people posing in an office and holding a small donation check.

GreenTeenz members met with Annette Osterbind at the TowneBank Innsbrook office.

Teens Helping Richmond Be More Green

GreenTeenz RVA is a new nonprofit started by teenagers who are dedicated to creating a cleaner, better, and more inclusive Richmond. Three GreenTeenz members — Maia, Camille, and Kristina — came to the TowneBank Innsbrook office to meet with branch manager Annette Osterbind and deposit their check from TowneBank.

GreenTeenz RVA is taking steps to improve the Richmond community by promoting sustainability and bringing attention to the environmental concerns all around us. Some of their projects include: park clean-ups and assembling sustainable care packages for the homeless community. Thank you GreenTeenzRVA for setting such a great example for all of us to follow.

Photo of Tracey Jameson speaking into a microphone while holding an award plaque.

Tracey Jameson, senior vice president and real estate loan officer, was presented with the Home Building Association of Richmond Ernest E. Mayo Award.

Tracey Jameson Recognized by the Home Building Association of Richmond

Congratulations to Tracey Jameson for winning the Home Building Association of Richmond (HBAR) Ernest E. Mayo Award! The annual award is given in recognition of character, integrity, service to customers, professional knowledge and ability, and association engagement.

Ernest E. Mayo was the second president of HBAR, serving in 1949 and 1950. The award was established in 1969 to recognize his contributions to the association and the real estate industry. Honorees are selected by past recipients based on their dedication and commitment to the association, community, and industry.

As the treasurer of HBAR, Tracey instilled best practices to help manage the Budget and Finance Committee, working tirelessly through models and scenarios to help the organization navigate their financial position during the pandemic. Tracey previously served as the chair of the Associates Council and was instrumental in bringing in-demand builders to the table. She helped lead the popular Meet the Builder program, as well as the Blue Jacket Invitational golf tournament, HBAR's premier networking event held annually at Hermitage Country Club. Additionally, Tracey actively recruited new board leadership to the organization.

The award was presented to Tracey in June 2021 at the Country Club of Virginia before members of the HBAR Board of Directors and special guests. Tracey joined the TowneBank family in 2017 and is an integral part of our real estate team serving the Richmond market. Congratulations, Tracey, on this well-deserved recognition!

Two people holding programs and standing in theatre lobby.

Betsy Pittman and Grace Holloway (l. to r.) enjoyed seeing Camelot at the Riverside Dinner Theatre.

Senior Partners Travel is Back!

We are excited to announce that our Senior Partners are planning some one-day trips for 2022. The group has already enjoyed two outings to the Riverside Dinner Theatre in Fredericksburg to see Camelot and Nunsense. Don't worry if you missed those trips — there is more fun in store!

Wicked promotional image

September 10
Wicked at the Altria Theater in Richmond
$236 per person, includes lunch

Ozark Jubilee promotional image

October 25
Branson's Ozark Jubilee Presents: Stars of the Grand Old Opry at the Roanoke Island Theatre in Manteo, NC
$162 per person, includes lunch at the Jolly Roger restaurant in Kill Devil Hills.

Ghost promotional image

November 2
Ghost the Musical at the Riverside Dinner Theatre in Fredericksburg
$158 per person, includes lunch

Riverside Christmas Spectacular promotional image

November 27
Christmas Spectacular at the Riverside Dinner Theatre in Fredericksburg
$*** per person, includes lunch

For more information and to make reservations, call Carol Hernandez, Senior Partner director, at 757-638-6797 or email Carol.Hernandez@TowneBank.net. We look forward to seeing you soon!

Steve Frazier, Senior Benefits Advisor
Assistant Vice President, Towne Benefits

The Gift of Long-Term Care

Nearly half of Americans over 65 need help with one or more activities of daily living, which may include bathing, dressing, eating, toileting, and transferring. Long-term care (LTC) pays for caregivers to provide non-medical assistance. LTC policies can be written with varying designs, but all have one common theme: to help provide the financial resources to pay the cost associated with helping you or a loved one continue to live as vibrant a life as possible.

Without a long-term care policy, you and your family are left to pay for in-home care using your Social Security pension, retirement funds, personal savings, and investments, sometimes costing up to $30 an hour. Medicare and health insurance plans do not provide this coverage.

The best time to take charge of your long-term care planning is when you are healthy and strong. Gather your medical, insurance, legal, and financial documents, and decide who you want making care decisions for you, where you would like to live, and who you would like to provide care.

Towne Benefits is here to help you think through your priorities, consider your funding options, and encourage a written long-term care plan for you or your loved ones.

If you would like to know more about long-term care, please contact Steve Frazier at 757-249-5481 or SteveFrazier@TowneBenefits.com.

Insurance and investment products offered through Towne Benefits, a subsidiary of TowneBank, are not a deposit, not FDIC-insured, not guaranteed by TowneBank, and may go down in value.

As part of an ongoing series in TowneToday, the professionals located at Towne Wealth Management are pleased to provide informative articles on a variety of wealth strategy topics. In this issue, Paul Hughes provides tips on how to ensure your legacy can last generations.

Paul Hughes
Senior Vice President, Towne Wealth Management
Financial Advisor, RJFS
804-967-2136

Tips for creating an inheritance that lasts generations

ESTATE AND GIVING

Preparing your heirs for sudden wealth can help prevent unwise spending.

If you have wealth to transfer, you may worry about the sometimes adverse effect of sudden wealth and the squandering of assets within a generation.

There is a good reason to be concerned: 70% of family money disappears by the second generation, and 90% by the third generation, according to the Williams Group wealth consultancy. The cautionary tales of families like the Vanderbilts also feed into this worry.

The result? Around 60% of parents think their children aren't prepared to receive a large inheritance, a study by U.S. Trust shows.

If you're in this position, you have a number of options to help ensure your legacy lasts.

Consider taking advantage of a trust

Trusts can help eliminate some of the guessing game of where money might end up, while allowing you to dictate how and when your assets are distributed after you die.

For individuals with relatively young heirs, age provisions that dole out trust income to beneficiaries only when they've reached certain ages can be beneficial. A common threshold for distribution is reaching age 25 or 30. Generation-skipping trusts are another helpful vehicle. In some cases, this type of trust can allow you to transfer money tax-free to your grandchildren or great-grandchildren.

Connect through philanthropy

Making charitable giving a family affair can provide opportunities to connect with younger generations and communicate values and ideals. When a philanthropic mission is shared among your family, it provides a forum for communication and sharpened decision-making in a situation where the money is going to others and there is no personal interest at stake. Donor advised funds and private foundations can be effective vehicles for this type of endeavor. Charitable remainder trusts (CRTs) can also help if you wish to give assets to charity in order to leave a smaller inheritance.

Talk to your heirs about your vision

Many squandered inheritances can be traced back to a root cause — poor communication. In nearly 60% of boom-and-bust inheritance cases researched by the Williams Group, trust and communication breakdown among family members played the largest role.

To help prevent a communication breakdown, consider sharing history, values, and a vision for the future of your family. This can be done in person at a family gathering or through a written statement, also known as an ethical will or legacy letter. With a common purpose and shared story, your family stands a better chance of preserving assets for future generations.

Leverage a professional's perspective

The Williams Group research points to failure to properly prepare heirs as another cause of lost inheritance, affecting about 25% of the cases studied. Your financial advisor can play a role in educating you and your family about inheritance, as well as wealth management and its important principles.

Creating a lasting legacy is neither easy nor impossible — the difficulty lies in the details. Finding the tools and resources that will benefit your family and situation can help make the difference between a squandered fortune and an inheritance that lasts generations.

The Raymond James financial advisors at Towne Wealth Management can help you utilize these tips and educate you and your family about helping your legacy last. Please contact any of our financial advisors with questions at 757-638-6850.

Raymond James, TowneBank and Towne Wealth Management are not affiliated with the Williams Group.

Towne Wealth Management and TowneBank are not registered broker/dealers and are independent of Raymond James Financial Services, Inc. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities offered through Raymond James Financial Services, Inc.,Member FINRA/SIPC, and are not insured by bank insurance, the FDIC or any other government agency, are not deposits or obligations of TowneBank, are not guaranteed by TowneBank, and are subject to risks, including the possible loss of principal.