Special Estate Planning & Post- Death Trust Administration

Ryan W. Lockhart Associate Phone: (925) Fax: (925) Ryan Lockhart graduated with Honors from University of Phoenix (B.S. 2007), and then attended Golden Gate University School of Law (J.D. 2010, L.L.M. in Taxation 2014). At Golden Gate, Ryan was member of Jesse Carter Society for Academic Excellence, and was on the Dean’s List from Spring 2007 through Spring Ryan was admitted to the California State Bar in His practice focuses on estate planning, wealth transfer planning, estate and gift tax planning, tax controversy, trust administration and probate Ryan Lockhart graduated with Honors from University of Phoenix (B.S. 2007), and then attended Golden Gate University School of Law (J.D. 2010, L.L.M. in Taxation 2014). At Golden Gate, Ryan was member of Jesse Carter Society for Academic Excellence, and was on the Dean’s List from Spring 2007 through Spring Ryan was admitted to the California State Bar in His practice focuses on estate planning, wealth transfer planning, estate and gift tax planning, tax controversy, trust administration and probate. Mr. Lockhart is an estate and tax planning attorney whose practice includes: Mr. Lockhart is an estate and tax planning attorney whose practice includes: Trust, estate and probate administration Trust, estate and probate administration Membership: Membership: American Bar Association American Bar Association State Bar of California State Bar of California Contra Costa County Bar Association Contra Costa County Bar Association Bay Area Young Tax Lawyer Bay Area Young Tax Lawyer Education: Education: Golden Gate University School of Law Golden Gate University School of Law University of Phoenix University of Phoenix Practice Areas: Practice Areas: Asset Protection Asset Protection Charitable Giving Charitable Giving Conservatorships Conservatorships Health Care Directives Health Care Directives Powers of Attorney Powers of Attorney Probate Probate Special Needs Trusts Special Needs Trusts Succession Planning Succession Planning Tax Planning Tax Planning Trust Administration Trust Administration Will Contests and Trust Disputes Will Contests and Trust Disputes Wills and Trusts Wills and Trusts

Jenifer K. Leece Partner Phone: (925) Fax: (925) Jenifer Leece's practice focuses on estate planning, trust and estate administration and estate related litigation. Ms. Leece has extensive litigation and mediation experience of trust and probate related matters representing trustees, executors, beneficiaries and conservators. Jenifer Leece's practice focuses on estate planning, trust and estate administration and estate related litigation. Ms. Leece has extensive litigation and mediation experience of trust and probate related matters representing trustees, executors, beneficiaries and conservators. Ms. Leece graduated from University of California, Davis in 1990 with a B.A.in International Relations and Spanish. She received her Juris Doctor from the University of San Francisco School of Law in 1994 and was admitted to practice in California and federal courts in While at the University of California, Davis and the University of San Francisco School of Law, Ms. Leece interned at the District Attorney's Office in Sacramento and San Francisco where she worked as a victim advocate with victims of domestic violence and as a certified legal intern in both the felony domestic violence and narcotics units. Ms. Leece is an estate planning attorney whose practice includes: Ms. Leece is an estate planning attorney whose practice includes: Estate Planning Estate Planning Trust, estate and probate administration Trust, estate and probate administration Litigation Litigation Membership: Membership: State Bar of California State Bar of California Contra Costa County Bar Association Contra Costa County Bar Association Education: Education: University of San Francisco School of Law University of San Francisco School of Law University of California, Davis University of California, Davis University of Salamanca, Spain University of Salamanca, Spain Practice Areas: Practice Areas: Wills and Trusts Wills and Trusts Trust Administration Trust Administration Succession Planning Succession Planning Will Contests and Trust Disputes Will Contests and Trust Disputes Probate Probate Powers of Attorney Powers of Attorney Health Care Directives Health Care Directives Special Needs Trusts Special Needs Trusts Conservatorships Conservatorships Tax Planning Tax Planning Asset Protection Asset Protection Ownership of Real Property Ownership of Real Property

NEW TAX ACT REVIEW  UNIFIED CREDIT (GIFT/ESTATE TAX EXLCLUSION)  PORTABILITY  ESTATE TAX PLANNING v. INCOME TAX PLANNING

NEW TAX ACT PLANNING OPPORTUNITIES Irrevocable Planning BUSINESSES BUSINESSES REAL ESTATE REAL ESTATE LIFE INSURANCE LIFE INSURANCE FINANCIAL ACCOUNTS FINANCIAL ACCOUNTS

IRREVOCABLE PLANNING EXCLUDED FROM GROSS ESTATE EXCLUDED FROM GROSS ESTATE GENERALLY LESS CONTROL OVER ASSETS GENERALLY LESS CONTROL OVER ASSETS ESTATE TAX PLANNING ESTATE TAX PLANNING

IRREVOCABLE TRUSTS  ILIT/SLAT – Irrevocable Life Insurance Trusts  QPRT – Qualified Personal Residence (or second home) Trust  Dynasty/GST Trusts and GST Exemption  Multi-generational planning  Charitable Trusts  IDGT – “Intentionally Defective Grantor Trusts”  Children’s Trusts

IRREVOCABLE LIFE INSURANCE TRUST “ILIT” How do they work? How do they work? Proper Funding Proper Funding I have one, but its broken. How can we fix a broken ILIT? I have one, but its broken. How can we fix a broken ILIT? Termination Termination Court Ordered Reformation Court Ordered Reformation Sale to New ILIT Sale to New ILIT

Spousal Lifetime Access Trust “SLAT”  Provide for Surviving Spouse  Marital Deduction  Respecting the Formalities

Non-Trust Assets  Qualified Retirement Accounts  Joint Tenancy  Payable on Death Accounts

Qualified Retirement Plans  Individual Retirement Account (“IRA”)  Spousal Rollover  Required Minimum Distributions & Stretch-Out Optimization

INCOME TAX LAW Step-up in tax basis on “owned” assets at death Step-up in tax basis on “owned” assets at death “Owned” assets are those that are includible in a decedent’s gross estate for tax purposes “Owned” assets are those that are includible in a decedent’s gross estate for tax purposes

Joint-Tenancy  Death of First Joint Tenant  Non-Step Up of Basis for Surviving Owner  Tax Implications

Payable on Death Accounts  Death of First Owner  Step-up of basis  Tax Implications

Trust Administration 101

Similarities between probate and trust administration Inventory and value assets Inventory and value assets Pay debts and taxes Pay debts and taxes Distribute assets to designated beneficiaries Distribute assets to designated beneficiaries Differences: No court supervision No court supervision Less structure and formality Less structure and formality Need for involvement of other professionals Need for involvement of other professionals Costs and Fees Costs and Fees

Trust Administration following death of first spouse: Step 1: Locate documents (estate plan, insurance policies, financial statements, tax returns, etc.) Step 1: Locate documents (estate plan, insurance policies, financial statements, tax returns, etc.) Step 2: Review and analyze estate planning documents Step 2: Review and analyze estate planning documents Step 3: Pay bills (medical bills, funeral and other expenses) Step 3: Pay bills (medical bills, funeral and other expenses)

Step 4: Formalities – Lodge Will, notify DHS and social security, re-title assets in name of trustee Step 4: Formalities – Lodge Will, notify DHS and social security, re-title assets in name of trustee Step 5: Inventory, collect and value all assets as of date of death Step 5: Inventory, collect and value all assets as of date of death Step 6: Analyze need for and file estate tax return Step 6: Analyze need for and file estate tax return

Step 7: Prepare accounting if required Step 7: Prepare accounting if required Step 8: Allocate trust property to sub- trusts if required Step 8: Allocate trust property to sub- trusts if required Step 9: File taxes Step 9: File taxes Step 10: Evaluation of estate planning documents going forward Step 10: Evaluation of estate planning documents going forward

Trust Administration following death of surviving spouse (or single person): Step 1: Locate documents, statements, tax returns, etc. Step 1: Locate documents, statements, tax returns, etc. Step 2: Review estate planning documents Step 2: Review estate planning documents Step 3: Administrative duties (formalities) Step 3: Administrative duties (formalities) Primary Difference: Trust is fully irrevocable

Step 4: Pay bills, expenses, claims Step 4: Pay bills, expenses, claims Step 5: Inventory, collect and value assets as of date of death Step 5: Inventory, collect and value assets as of date of death Step 6: File and pay outstanding taxes/ determine if 706 is required Step 6: File and pay outstanding taxes/ determine if 706 is required

Step 7: Prepare accounting Step 7: Prepare accounting Step 8: Make distributions and gifts/maintain reserve Step 8: Make distributions and gifts/maintain reserve Step 9: File final trust income tax returns/distribute reserve Step 9: File final trust income tax returns/distribute reserve

OUR CLIENTS Business Owners Business Owners Real Estate Investors Real Estate Investors High Net Worth Individuals High Net Worth Individuals Life Insurance Portfolios Life Insurance Portfolios Professionals Professionals Clients Requiring General Estate Plans Clients Requiring General Estate Plans

PRACTICE AREAS Business Business Real Estate Real Estate Wealth Succession and Estate Wealth Succession and Estate Tax Tax Employment Employment Business, Real Estate, Estate and Commercial Litigation Business, Real Estate, Estate and Commercial Litigation