Driftwood
Annual Wealth Operating Review

The state of the system.

The Harris Family · 2026
Prepared for the family and its advisors · an illustrative sample
Current edition2026 · the first editionprepared annually · each year's review is kept, none overwritten

A year read the way it's actually lived: not by what the market did, but by what changed, what it set in motion, and what decisions are ahead.

01

Executive summary

This year, in one glance
14
opportunities identified
9
implemented
3
in progress
2
deliberately deferred

A year of preparation. The two decisions that will define the next few years, a business sale and a move across a state line, are now set up to happen in the right order. The system is in good order.

02

Household dashboard

Coordination Index
Tier III
Intensive · 9 of 14
Net worth
$8.0M
across 10 holdings
Major decisions
3
in the next 24 months
Professionals
5
coordinated as one team
03

What changed this year

Not the market. Life. These are the events that actually reshaped the operating system, and each one triggered a review of what it touched.

Q1RSUs vested, adding to a concentrated position.
Q1The life policy moved into an ILIT, out of the estate.
Q2A grandchild was born; 529 funding began.
Q2The business valuation was refreshed ahead of a sale.
Q3Illinois → Texas residency planning began.
Q4A Roth conversion filled the low-bracket year.
04

Opportunity register

The heart of the review, and notably not about Driftwood. Each opportunity has a lead professional, because the work is the team's.

OpportunityLead professionalStatus
ILIT for the life policyEstate attorneyComplete
Asset location (bonds → IRA)DriftwoodComplete
Roth conversion, low-bracket yearCPAComplete
Business succession & buy-sellBusiness counselAttorney reviewing
RSU concentration sell-downDriftwoodIn progress
§162 bonus to fund the premiumCPAIn progress
Gift discounted business interestsEstate attorneyDeferred to sale
Document domicile for the moveHouseholdNeeds action
05

Decision timeline

Past 12 months
  • ILIT funded and the policy re-titled
  • Asset location completed across accounts
  • Tax-loss harvest banked for future gains
  • First Roth conversion of the ladder

Each line here traces to an entry in the Decision Register. This review is not a yearly reset — it re-reads every open decision against the reason it was made and asks a single question of each: did its assumption hold, and did its trigger fire?

06

Coordination health

The equivalent of a systems check, in place of a performance table. The questions that determine whether the plan still holds together.

Beneficiary designations updated this year?Yes
Estate plan reviewed against current law?Yes
Met with the CPA before year-end?Yes
Every account titled correctly?Yes
Insurance owned outside the estate?Yes · ILIT
Does liquidity match the next 24 months of needs?Review
07

Key risks

Operating risks, not market volatility. What could go wrong in the system, and how exposed we are today.

Concentration in employer stockElevated · sell-down underway
Domicile not yet documented for the moveOpen
Illiquid estate vs. a nine-month tax billMitigated · ILIT
Key-person dependency in the businessWatch
08

The letter

To the Harris family · 2026

Tom and Dana,

What changed. This was a year of setting the table. The policy is now outside your estate, your accounts are located for tax efficiency, and the first Roth conversion is done. Nothing here was dramatic. All of it compounds.

What matters. Two decisions will shape the next few years: selling the business, and the move to Texas. Their value is almost entirely in the order they happen. Establish residency first; sell and convert after. We have time to get this right, and time is part of the system.

What we're watching. The bracket headroom for conversions, your Illinois estate exposure until the move is final, and the concentration in employer stock as it unwinds.

What's ahead. A business-sale structure to model, the residency clock to start, the next rung of the Roth ladder, and a gifting question that waits on the sale. All of it is on the calendar, and all of it has an owner.

The system is in good order. We'll see you at the spring session. — Driftwood

Reviewed

Decision Register DR-001 – DR-005

Operating Manual rev. 06

Capital Allocation Policy Rev. 2

Constitution amend. 3

Opportunity Register rev. 6 · 8 open

After-Tax Review v1.0

This is what a year with Driftwood produces.
The Review is the centerpiece of the relationship, and the reason "better decisions" is a promise you can hold in your hands. See how the cadence runs, or start the map.
How the review works → Find your Coordination Score
Illustrative sample — not investment, tax, or legal advice. The Harris family is fictional and this document is shortened and simplified for illustration; a real Annual Wealth Operating Review is private to the client. Figures, statuses, and outcomes are hypothetical, and the strategies referenced require individualized tax and legal advice. Driftwood coordinates with your CPA and attorney and does not provide tax or legal advice. Driftwood Wealth is a registered investment adviser; Form ADV Part 2A and Form CRS are available directly; the firm’s public record is at adviserinfo.sec.gov. Privacy Policy · Terms of Use.