Wills, Trusts, & Powers of Attorney Compliance Update Wills, Trusts, & Powers of Attorney Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

For Broker-Dealer Use Only. Not Approved for Client Use. Wills Probate: The proceeding by which the document is judicially established to be the last will and testament of the decedent. In every State there is a Probate Court which handles wills. Generally, All Wills must be admitted to Probate. Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

Executor vs. Personal Representative Personal Representative (PR): This refers to the person named by the court, to administer the estate. Executor (E): This refers to the person named in the Will to administer the estate. Duties of the PR and the E are indentical—both are charged with administering the estate. Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

Admission of Will to Probate Once admitted to Probate, Letters Testamentary are issued to either the Personal Representative or the Executor of the estate. Letters Testamentary: Issued by the Probate Court—authorizes the PR or E to take possession of the decedent’s property and to act on behalf of the estate. Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

For Broker-Dealer Use Only. Not Approved for Client Use. FHC and Wills Must have Letters Testamentary. Death Certificate and Will is not enough to allow any action on the account. Registered Principal must review. Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

For Broker-Dealer Use Only. Not Approved for Client Use. Trusts Trust: Will substitute Trusts arise by operation of law and are not subject to Probate.** (unless Testamentary Trust) Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

For Broker-Dealer Use Only. Not Approved for Client Use. Types Revocable: Power to revoke the trust is included in the trust document—Also called Inter- Vivos Trust—Sometimes referred to as “Living Trust” Irrevocable: May not be revoked. Testamentary: A trust created in a will. Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

For Broker-Dealer Use Only. Not Approved for Client Use. Trustee Has powers over the trust property. Trust may have one or more trustees. Powers may be spelled out in the trust itself or arise by statute. No Self-Dealing. Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

For Broker-Dealer Use Only. Not Approved for Client Use. Trustee-Continued If there are 2 trustees, both must consent to the proposed action. If there are 2 trustees, one may act alone ONLY IF the trust gives them the power to act alone. Document ALWAYS governs!! Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

For Broker-Dealer Use Only. Not Approved for Client Use. FHC and Trusts FHC will not interpret Trust Need the following pages of the Trust to process: First and Second pages listing the name, date and grantor of the Trust Signature/Notary/Witness Page Page which documents who the Trustee is Page detailing investment powers Prefer to have a Certificate of Trust Always request Trustee Certification of Investment Powers. Registered Principal must review. Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

Uniform Transfers to Minors Act Uniform Gift to Minors Act (UTMA/UGMA) These are considered a type of irrevocable trust. Legal title to the property transferred (gifted) to the minor is held by the minor. Custodian charged with using funds for the interest of the minor or investing funds in the best interest of the minor. 2 main differences between UTMA and UGMA: Age of Majority: UGMA: Typically, 18 years of age UTMA: Typically, 21 years of age Asset Type: UGMA: Typically only cash, securities, annuities, insurance, etc. UTMA: In addition to the above, can also contribute real property, artwork, etc. Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

For Broker-Dealer Use Only. Not Approved for Client Use. FHC and UTMA/UGMA Customer Account form must be filled with the Minor as the owner of the account. FHC will request further information if funds are withdrawn from account for the benefit of the custodian. Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

Joint Ownership of Accounts Joint Tenants with Right of Survivorship (JTWROS) Undivided ownership—right to possess whole May not sell/dispose of interest without consent of joint tenant Ownership passes automatically to surviving joint tenant upon death Either party has full access and control over the account. Tenants in Common: Fractional ownership—right to possess whole Freely transferable—ownership does not pass to co-tenant upon death—passes to estate Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

Powers of Attorney(POA) Types Durable - Effective immediately - Authorization survives the incapacity/mental disability of Principal Non-Durable - Effective immediately - Authorization terminates upon the incapacity/mental disability of Principal - Generally used for a specific purpose Springing - Not effective immediately - “Springs” into existence and effective upon the incapacity/mental disability of the Principal **In all instances, a POA (regardless of the type) is terminated upon the death of the Principal or upon the revocation of the POA by the Principal. Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.

For Broker-Dealer Use Only. Not Approved for Client Use. FHC and POAs FHC will require a copy of the POA FHC will require that a Power of Attorney Affidavit and Indemnification Form be executed. Be cautious of differences between between Trustee and POA Revised June 2013 For Broker-Dealer Use Only. Not Approved for Client Use.