Trust Protectors & Retention of Assets Under Management 2017 Married Basic CUP Trust Protectors & Retention of Assets Under Management The FPA of Greater Indiana August 2018 Presented By: Richard L. Randall, JD, CFP Randall, Gentry & Pike, P.C. lifespanusa.com r

Special Delivery and e-Planning Services! 2017 Married Basic CUP Firm Update Randall, Gentry & Pike, P.C. Serving Clients in: Indianapolis Northwest Indiana Fort Wayne And Nationally Via Our Special Delivery and e-Planning Services!

Firm Partners Rick Randall Greg Gentry Whittley Pike 2017 Married Basic CUP Firm Partners Rick Randall Retirement Plan Integration; Empowered Inheritance Planning; e-Planning Greg Gentry Empowered Estate Planning™️; NextGen Estate PlanningⓇ; e-Planning; Business Planning Whittley Pike Special Delivery™, Proactive Elder Law™; Empowered Estate Planning™️; NextGen Estate PlanningⓇ

Estate Planning Overview Definition of Estate Planning I Want to Control My Property While I’m Alive and Well Plan for Me and My Loved Ones if I Become Disabled This definition, originally designed by Bob Esperti and Renno Peterson has been built and kept current by hundreds of National Network members. Again, it serves as a “target” for what we’re trying to accomplish. We ask every client to sign off (or help us modify) the definition. Let’s see how it sounds to you.

Estate Planning Overview Definition of Estate Planning Then Give What I Have To Whom I Want When I Want The Way I Want All While Assuring My Wisdom is Transferred Along with the Rest of My Wealth

ESTATE PLANNING PYRAMID SAVE TAXES EXPAND WEALTH PRESERVE WEALTH FAMILY Over the years, we’ve developed and used what we call a Planning Pyramid that embodies our Counselling Philosophy. The ORDER is critical. This sounds academic, but is actually quite important. Most Important Person in the World (me); quickly to Spouse and Family (“Not much in it for Me”). Next is Preserve Wealth—we do a lot in this area through our planning. Would you agree that most people will spend much more time, energy, effort, care and concern to preserve what than they will to increase it. That said, “if you’ve got any great ideas on how to expand my wealth, I’m all ears!” Much of this work is done by Planning Partners. Finally, a quiz for you. What’s the easiest piece of a jigsaw puzzle? The last. Actually, two acceptable answers—the first is OK, too because you can’t be wrong on where you start. Planning, especially in choosing between complex tax strategies, is thus made EASIER as it represents the “last piece.” Most professionals approach things the opposite. When we ask attorneys (and some advisors) they say “colors” or “corners.” Those are STRATEGIES. They’re trained to find solutions rather than to focus on people. (Turn Pyramid Upside Down). Note planning is poised precariously on tip. Unstable. We plan bottom up—rightside up planning. ME “I want to control my property while alive and well, plan for me and my loved ones if I become mentally disabled, and then give what I have to whom I want, when I want and the way I want-- all while assuring my wisdom is transferred along with the rest of my wealth.”

by National Network members by express permission and ™ TM & © GPS, LLC 2017. Use by National Network members by express permission and under license granted by GPS, LLC.

The Empowered Estate Plan™ DEVELOP Your Plan with Counselling Oriented Planning Partners (Empowered Design Program™) COMMIT Yourself and Your Family to a Formal Continuing Maintenance and Education Program (Empowered Legacy Program™) SECURE Appropriate Assistance for You and Your Family to Transfer Your Wisdom Along With the Rest of Your Wealth (Empowered Inheritance Program™) ™ TM & © GPS, LLC 2018. Use by National Network members by express permission and under license granted by GPS, LLC.

Trust Protectors & AUM Retention 2017 Married Basic CUP Trust Protectors & AUM Retention Three Functions of a Trustee Distribution Administration Investment Functions Can Be “Divided” or “Directed”

Trust Protectors & AUM Retention 2017 Married Basic CUP Trust Protectors & AUM Retention Divided Trusteeship Allowable Under State Law Specific Authority in Some States Uniform Directed Trust Act Also Supports Trust Protector Authority

Trust Protectors & AUM Retention 2017 Married Basic CUP Trust Protectors & AUM Retention Directed Trusteeship Difference is One Trustee, But That Trustee Directed By Others Allowable Under State Law Specific Authority in Some States Uniform Directed Trust Act Also Supports Trust Protector Authority

Trust Protectors & AUM Retention 2017 Married Basic CUP Trust Protectors & AUM Retention Importance of Independence “Too Much Control” Business Planning (Attribution Rules) Tax Planning By Analogy, Asset Protection Key to How We Can Best “Defend” Against Creditors and Predators

Trust Protectors & AUM Retention 2017 Married Basic CUP Trust Protectors & AUM Retention “Independence”—or Lack Thereof! Up—Parents Down—Children & Grandchildren Side to Side—Siblings In Front—Spouse Behind—“Controlled” Employee

Trust Protectors & AUM Retention 2017 Married Basic CUP Trust Protectors & AUM Retention “Independence”—or Lack Thereof! Important to Note that Same Standard Is Commonly Used for Independent Trustee and Trust Protector (Who Must be Independent)

Trust Protectors & AUM Retention Trust Protector Review Session What is a Trust Protector? Non-Trustee, Non-Beneficiary Holder of Powers Typically holds powers that the trustee/beneficiary cannot or should not hold

Trust Protectors & AUM Retention Trust Protector Review Session What Can a Trust Protector Do? Most Commonly: Amend or Restate Documents ( tax changes, correct ambiguities, correct drafting errors, change financial powers, change situs, change withdrawal rights, change termination date, or for clarity, convenience, and ease of administration) We’ve Recently Added Ability to Approve or Disapprove Distributions

Trust Protectors & AUM Retention Trust Protector Review Session What a Trust Protector Cannot or Should Not Do—We Normally Prohibit: Expansion of Trust Protector Powers Acts that Create a GPA in the Trust Protector Acts that Impair the Marital Deduction (if applicable) Acts that Impair Designated Beneficiary Status Acts Inconsistent with the Trustmaker’s Intent Most Commonly: Amend or Restate Documents ( tax changes, correct ambiguities, correct drafting errors, change financial powers, change situs, change withdrawal rights, change termination date, or for clarity, convenience, and ease of administration) We’ve Recently Added Ability to Approve or Disapprove Distributions

Trust Protectors & AUM Retention Trust Protector Review Session Two Critical Questions Who Might Serve? Cannot Be Related to You (“Independent”) Should Have Strong Understanding of the Law Should Have Strong Understanding of the Trust Document How Does Trust Protector Know Your Intent? Can Only Make Changes Based on Your Intent

Trust Protectors & AUM Retention Trust Protector Review Session Third Party Who Can Make Modifications to Your Trust Even When You’re Disabled, After Your Death, or Even After Both Spouse’s Death Can Only Make Changes Based on Your Intent

Trust Protectors & AUM Retention. Trust Protector Review Session Intent Can be Determined by: Four Corners of the Trust Document Memorandum of Intent Signed Writings of Trustmaker EPRW (type of signed writing) Documented Communication (Email/Phone Calls) Personalization Checklists from Client Design Templates Contrast Proactive versus Reactive Planning Provide Blog Article ”For Later Review”

Trust Protector Summary for Clients WHO May Serve? Independent Third Party Only (Internal or External) WHEN May Trust Protector Serve? Available to Add Needed Changes After Your Disability or Death (To Benefit Inheritors) WHAT Reasons Can Changes Be Made For Powers Granted and Based on YOUR Intent (Documented in your file!), Not For Just Any Reason This one reviews it all. Note summary slide is the one with the Quiz Alert! At some point, it will be used alone or with fewer supporting slides necessary. We must WATCH the audience for how much they’ve absorbed—move forward only when you “KNOW” they’ve mastered the last concept!

Trust Protectors & AUM Retention 2017 Married Basic CUP Trust Protectors & AUM Retention Trustee (and Protector) Options Individuals (Watch Age & Relationship) Accountants or Accounting Firms Attorneys or Law Firms Traditional Bank & Trust (Often Reluctant or Refuse to Divide Trusteeship or Accept Direction) Independent Trust Companies (More Open to Divided or Directed Trusteeship)

Randall, Gentry & Pike, P.C. 2017 Married Basic CUP Randall, Gentry & Pike, P.C. The Trust Settlement Process

Randall, Gentry & Pike, P.C. 2017 Married Basic CUP Randall, Gentry & Pike, P.C. Personal Protections Planner™️

Empowered Inheritance Program™ 2017 Married Basic CUP Empowered Inheritance Program™ Distribution Co-Trustee Provides Protection Against Outside Threats No Investment or Administrative Authority or Responsibility Financial Account Forms Not Honoring Distinction Moving From Distribution Co-Trustee to Distribution Protector to Reach Our Goals

Empowered Inheritance Program™ 2017 Married Basic CUP Empowered Inheritance Program™ Inheritor Serves as Sole Trustee on Financial Accounts (and Thus Clearly Controls Investments) Distribution Protector Now Provides Protection Against Outside Threats (Same “Independence”) No Investment or Administrative Authority or Responsibility Simply an Extra Power for Trust Protector!

Empowered Inheritance Program™ 2017 Married Basic CUP Empowered Inheritance Program™ Extra Power for Trust Protector! All Distributions “Veto Power” Hybrid Approach

Empowered Inheritance Program™ 2017 Married Basic CUP Empowered Inheritance Program™ What About Independent Trust Companies? Some Accept Divided Trusteeships Some More Familiar with Direction From Trust Protector While Retaining Trusteeship Responsibility Fee Schedule for Each Reflects Reduced Liability In Our Experience, Minimum Fees May Still be Concern for Clients With Less Assets In All Cases, You Retain Investment Account

Empowered Inheritance Program™ 2017 Married Basic CUP Empowered Inheritance Program™ Inherited Trust Maintenance & Education “Educating Beneficiaries” is a Good Overview Nuts ‘n Bolts IV “Maximizing Your Inheritance” Provides Proactive Training to Inheritors Mandatory Enrollment and Voluntary Annual Renewal (Standalone Trust, Updating & Distribution Protection)

Empowered Inheritance Program™ 2017 Married Basic CUP Empowered Inheritance Program™ Ongoing Protective Trust is Key to Retention of Assets Under Management Formal Family Engagement Builds Relationship With Inheritors Earlier Trust Explanation and Implementation Requires More Interaction—and Builds Relationship!

Empowered Inheritance Program™ 2017 Married Basic CUP Empowered Inheritance Program™ In Short, Program Supports Building Relationship With Inheritors Earlier and in More Both Divided Trusteeships and Directed Trust Keep Family in Control of Assets-–With You as Trusted Advisor MUCH More Likely That Assets Under Management Will be Retained!

Trust Protectors & AUM Retention. Trust Protector Review Session Questions for Today? Next Step is to Attend Our Law Firm CE Series or Meet with One of Us in Person! Thanks for Attending! Contrast Proactive versus Reactive Planning Provide Blog Article ”For Later Review”