1. 17 for ’17 Estate Planning Concepts and Approaches Financial Advisors Need to Know!
S1 - Cliff Young (Open Mind) Optional Opening
Presented by
Richard L. Randall, Randall, Gentry & Pike, Attorneys & Counsellors At Law

2. Estate Planning Overview
The Traditional Estate Planning “System”:
What Were They Thinking?
Contrast Proactive versus Reactive Planning

3. Estate Planning Overview
Most Estate Plans
Just Don’t Work!
PQ1 - Let me ask you a question. How many of you have found there are really only two types of things in life—things that work, and things that don’t work?
We’re not talking about some “hoity toity” legal definition. A plan that works is simply one that meet your expectations.

4. Estate Planning Overview
“The Snapshot Test”
S2 - The Snapshot Test™ (Missed Expectations)
PQ2 - I have a question for you. How do you know whether an estate plan works? In fact, a better questions is when do you now whether an estate plan works? So, you’re up above, looking down (we’re optimists!). If the people down there are doing what they’re supposed to be doing, and not doing what they’re not supposed to be doing, that’s a plan that works!
Now, for how many of you is that “snapshot” a bit fuzzy? A lot fuzzy? To help we’ve developed a “target” over the years.

5. 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.

6. 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
No asking for much, are we? “Wisdom” seems to be the least comfortable part of the whole thing! But it’s the key to personalizing your plan. Each of us has lived our life a certain way—we have values and experiences that have shaped us and our outlook. We want to bring this to your planning. Each plan should reflect the hopes, fears, dreams, aspirations and yes, even picadillos, of the maker.

7. Estate Planning Overview
Keys to an Effective Estate Plan
Personalized Counselling
Proper Asset Ownership
Formal Review Process
Controlled Transfer Process
What to Do
How to Do It
How to Pay for It
Here are the keys to an effective plan:
Personalized counselling
Critical to correctly “put names on what you own” Boring, but often absolutely determines success or failure of plan
FORMAL review process (vs. put on shelf)
Controlled Transfer Process
How many of you feel your family prepared if you were to die today. What does that mean to you? Often, they know the lawyer’s name—who to call. We ask, do they know What to do, How to do it, and most importantly, how to pay for it.
PQ3 - Let me ask you a question. How many of you have talked with your attorney about how your estate will be charged after you’re gone? Show of hands.

8. Estate Planning Overview
The LifeSpan™ Estate Planning System:
An Alternative Estate Planning Delivery System
Contrast Proactive versus Reactive Planning

9. Estate Planning Overview
The “Wisdom W”
This is our name for a one-page diagram that represents our overall planning process.

10. Wealth Reception Planning™ Support
The LifeSpan Planning ProcessTM ™
The Relationship Exploration Approach™
The CoCreative Counselling Experience™
The Financial Integration Formula™
The Continuous Commitment Compact™
The LifeSpan Learning Solution™
The Settlement Security System™
Wealth Reception Planning™ Support
Here, quickly review from start to finish.
Here it is! Note the shape—the Wisdom is in the process, and it’s the process that produces the results.
REA=making a good decision if we’re going to work together; CCE=Working together to create a custom-designed set of instructions; FIF= Integrating your asset title and finances with the plan so that your instructions apply to everything you own and so that you own what you need to support your instructions; CCC=How we work together to keep your plan current over the years—the “Rules of the Playground”; LLS=support education and services provided to yourself and your family by firm, Resource and Planning Partners; SSS handles asset transfer in event of disability and death. The goal here is efficiency.; WRSP=“Appropriate Assistance” provided to Beneficiaries and Trustees by Firm, Resource and Planning Partners so that your wisdom and wealth is effectively received!
The Process Produces the Results™ ™
TM & LifeSpan, LLC Use by National Network members
by express permission and under license granted by LifeSpan, LLC.

11. Estate Planning Overview
Three Step Strategy™
DEVELOP Your Plan with Counselling
Oriented Planning Partners
COMMIT Yourself and Your Family to a Formal Continuing Maintenance and Education Program
SECURE Appropriate Assistance for You
and Your Family to Transfer Your
Wisdom Along With the Rest of Your Wealth
To create a Plan that Works, we recommend a Three Step Strategy™

12. Trusts Are For Everyone!*
Number One:
Trusts Are For Everyone!*
Contrast Proactive versus Reactive Planning

13. Trusts Are For Everyone!*
Number One:
Trusts Are For Everyone!*
*Everyone That Has An Estate And Wants a Plan That Works, That Is!
Contrast Proactive versus Reactive Planning

14. Life Risks Lack of Financial Discipline Lack of Financial Experience
Lack of Tax Experience
Failed Marriage
Catastrophic Illness
Catastrophic Creditors

15. The “School Bus” Foundation
17 for ‘17
Number Two:
The “School Bus” Foundation
Contrast Proactive versus Reactive Planning

16. Wealth Reception Planning™
Our Experience
Initial Mindset is Normally a Barrier
With Education, Client’s “Snapshot” Changes
Need for Active Family Involvement Is Clear

17. Trust Design The Two Way Street™ Balancing Access & Control
Against Potential Trust Protections
S9 - Two Way Street (Trust Design – Balancing Control vs. Protection)
PQ14 - Let me ask you a question. When you were growing up, what did your Mother teach you about crossing the street? What if it was a one way street?

18. Access and Control Mindset
Trust Design
Access and Control Mindset
(Client’s)
“Don’t Want to ‘Pull Strings’ From the Grave”
“They’re Independent”
“It’s Their Job to Take Care of the Kids”

19. Trust Protections Mindset
Trust Design
Trust Protections Mindset
When is it OK for:
Ex-Spouse to get the inheritance you leave in a divorce proceeding?
Medicaid to require spenddown of the inheritance you leave?
Catastrophic Creditor to get inheritance you leave?
PQ15 - I have a question for you. If your loved one has a creditor and loses a lawsuit when is it OK with you that the inheritance you’ve left them goes to the creditor? At what age is that OK? How many years after you die? If your loved one gets divorced when is OK if inheritance from you is divided with the outlaw? At what age? How many years after you die? If your loved one has a catastrophic illness, when is it OK with you that Medicaid the inheritance to be spent? At what age? How many years after you die?
So, one more question for you. How long do you want the money and property you leave them to remain in trust?

20. Estate Planning Overview
Number Three:
The Divided Trusteeship
Contrast Proactive versus Reactive Planning

21. Trust Design “School Bus” Trust Review Typical Design:
2016 Advanced Singles CUP
Trust Design
“School Bus” Trust Review
Typical Design:
Beneficiary Co-Trustee
Retains Administrative and Investment Control
Distribution Control Shared for Strength of Protections (BUT, Financial Institution Forms Often Require Further Direction!)
Hire and Fire Power

22. The Trusteeship Customizer™
Per the:
The Trust
Protections
SpectrumTM
Mike
Lexie
Matt
* Instructions
GPA
LPA
GPA
LPA
GPA
LPA
 Distribution
 Administration
 Investment
Beneficiary & Independent Trustee Beneficiaries’ choice
Potential Advantages to leaving assets in trust:
• Additional Divorce Protection
• Additional Creditor Protection
• Additional Catastrophic Illness Protection TM
TM & LifeSpan, LLC Use by National Network members
by express permission and under license granted by LifeSpan, LLC.

23. “Amendable” Irrevocable Trusts
17 for ‘17
Number Four:
“Amendable” Irrevocable Trusts
Contrast Proactive versus Reactive Planning

24. “Amendable” Irrevocable Trusts
17 for ‘17
“Amendable” Irrevocable Trusts
Powers of Appointment
Trust Protector
Decanting
Contrast Proactive versus Reactive Planning

25. “Amendable” Irrevocable Trusts
17 for ‘17
“Amendable” Irrevocable Trusts
Powers of Appointment
Often Limited Power to Spouse
Trust Protector
Independent Third Party Subject to Powers Granted and Expressed Intent
Decanting
Provided By State Law
Depends on Discretion Granted Trustee
Contrast Proactive versus Reactive Planning

26. Balancing Federal Estate and Capital Gains Tax Planning
17 for ‘17
Number Five:
Balancing Federal Estate and Capital Gains Tax Planning
Contrast Proactive versus Reactive Planning

27. 17 for ‘17
Traditional Tax-Focused Professionals Have Shifted Attention From Estate Taxation to Income Taxation (Specifically, Capital Gains Taxation)

28. Traditional Tax Planning Overview
Marital (“A)” Trust To Get Unlimited Marital Deduction
Bypass (“B”) Trust To Use Estate Tax Exemption Amount
“B” Trust is NOT Included in Survivor’s Estate
With Large Exemptions (“Coupons”) No Longer Needed By Many for Death Tax Planning—and, Results in Capital Gain Tax on Second Death!

29. Traditional Tax Planning Overview
As a Result, Virtually ALL Traditional Tax-Planning Trusts Should Be Reviewed and Updated!

30. Key Planning Concepts Tax Planning Overview Portability
Allows Transfer of Deceased Spouse’s Unused Exemption to Survivor
The “Bounty Clause”
Allows Distribution Flexibility While Creating Second “Step-up” in Basis (to Minimize Tax)
Clayton Election
Allows Trustee to Direct Funding of Marital/Family (A/B) Trusts To Minimize Tax

31. Tax Planning Overview (Specifically, Capital Gains Tax!)
Pass Assets Directly (Outright) to Spouse
Pass To Spouse in Q-TIP (Marital) Trust
Unlimited Marital Deduction for Death Tax Protection at First Death
Relies On Use of Portability To Protect Against Death Tax at Second Death
Receive Second Step-Up in Basis for Capital Gains Tax Protection Because Included in Survivor’s Estate

32. Tax Planning Trust Design
Marital Trust Provides “Step-up” in Basis (Better for “Income Tax Planning”)
Family Trust Allows Beneficiary Flexibility and Slightly Stronger Personal Protections
“Correct” Design Depends on Your Family Goals and Type/Amount of Assets You Own

33. Tax Planning Trust Design
Marital Trust
Mandatory Income
Spouse Only Beneficiary
Family Trust
Mandatory or Discretionary Income
Non-Spouse Beneficiaries Allowed

34. Basic Planning Concepts-Basis
Tax Planning Overview
Basic Planning Concepts-Basis
Death (Often Referred to as “Step-Up”)
Property Must Be Included in Deceased Estate to Receive Adjusted Basis
All Marital Trusts are Included in Deceased’s Estate
Property Subject to GENERAL Power of Appointment Included in Holder’s Estate

35. Estate Planning Overview
What is a GENERAL Power of Appointment?
If You as Holder Have Power to Appoint Property to Yourself, Your Creditors, Your Estate or Creditors of Your Estate
This Results in Inclusion in Holder’s Estate
For Estate Tax Planning This is Negative, but Great for Capital Gains Avoidance!

36. Estate Planning Overview
Key Planning Concepts
The “Bounty Clause”
Allows Distribution Flexibility While Creating Second “Step-up” in Basis (to Minimize Tax)
All Property Directed to Family Trust
Custom Power of Appointment Language Added to Family Trust

37. Federal Estate Tax Reduction
What is a GENERAL Power of Appointment?
If You as Holder Have Power to Appoint Property to Yourself, Your Creditors, Your Estate or Creditors of Your Estate
Remember, This Results in Inclusion in Estate
For Estate Tax Planning This is Negative, but Great for Capital Gains Avoidance!

38. Key Planning Strategies
What is the “Bounty Clause”?
It’s a Limited GENERAL Power of Appointment—Based on a Formula
Holder (Spouse) Has Power to Appoint Property to Creditors of Own Estate
BUT, Only Up to Amount That Will Not Cause Estate Tax
Guidance is Provided Regarding Which Assets to “Target” for Power

39. “Best of Both Worlds?”
If survivor’s “coupon” is more than his/her estate, “Bounty Clause” applies leftover coupon to appreciated Family Trust assets (now included in second estate)
Language allows us to soak
up Unused “Coupon” and
Receive a Step-up in Basis to Value
at Second Death!
To soak up a later “Step Up in Basis”

40. Tax Estate Planning Overview
The Clayton Election
Allows Trustee to Direct (“Target”) Funding of Marital/Family (A/B) Trusts To Minimize Tax
All Property Directed to Marital Trust
Trustee Elects Whether to Apply Unlimited Marital Deduction Added to Family Trust

41. Trust Design
“Correct” Design Depends on Your Family Goals and Type/Amount of Assets You Own
For Many, The “Bounty Clause” Provides the Best of Both Worlds!
For Larger Estates With Large Amount of Capital Gains Assets, Clayton Election Provides More Efficient Tax Planning

42. Traditional Tax Planning Overview
As a Result, Virtually ALL Traditional Tax-Planning Trusts Should Be Reviewed and Updated!

43. School Bus Trust Design
Same “Bounty Clause” Concept Can Be Applied To “School Bus” Trust For Non-Spouse Beneficiaries
School Bus Trust Allows Beneficiary and Distribution Flexibility with Strong Personal Protections

44. 17 for ‘17 Number Six: The “Cookie Jar Power”
Contrast Proactive versus Reactive Planning

45. Concern: Compressed Income Tax Rates!
2016 Advanced Singles CUP
”Cookie Jar” Power
“School Bus” Trust Review
Concern: Compressed Income Tax Rates!
Trusts Taxed On Different Schedule
Same Rates, But Increase at Lower Income Levels as Individual

46. Concern: Compressed Income Tax Rates
2016 Advanced Singles CUP
“Cookie Jar” Power
“School Bus” Trust Review
Concern: Compressed Income Tax Rates
“Cookie Jar” Withdrawal Power to Accomplish “Best of Both Worlds” Planning
Goal: Acquire Protections of “School Bus” Trust Without Higher Income Taxes

47. “Cookie Jar” Power “School Bus” Trust Review: Actual Concern:
2016 Advanced Singles CUP
“Cookie Jar” Power
“School Bus” Trust Review: Actual Concern:
“Cookie Jar” Withdrawal Power to Accomplish “Best of Both Worlds” Planning
IRS Says Beneficiary Taxed on Income Even If Not Withdrawn From Trust
Just What We Want!
Beneficiary Taxed at Individual Rates
Income Remains in Protective Trust!

48. “Cookie Jar” Power Actual Concern: “School Bus” Trust Review
2016 Advanced Singles CUP
“Cookie Jar” Power
“School Bus” Trust Review
Actual Concern:
“Cookie Jar” Withdrawal Power to Accomplish “Best of Both Worlds” Planning
Any Downside? Creditor Can Reach Income!
We Can Control Income If/When Outside Threat Exists-and Even When One Doesn’t!

49. Beneficiary Balance Beam™
2016 Advanced Singles CUP
Trust Administration
“School Bus” Trust Review
Beneficiary Balance Beam™

50. Retirement Plan Integration
17 for ‘17
Number Seven:
Retirement Plan Integration
Contrast Proactive versus Reactive Planning

51. Retirement Plan Integration
Designated Beneficiary Trusts
Creditor Protection for Inherited IRAs (The Clark Decision)
Legislative Threat to Stretch-out
If Needed, Potential Stretch-out Rescue Plan Available
Contrast Proactive versus Reactive Planning

52. Retirement Plan Integration
Designated Beneficiary Trusts
Creditor Protection for Inherited IRAs (The Clark Decision)
Legislative Threat to Stretch-out
If Needed, Potential Stretch-out Rescue Plan Available
Contrast Proactive versus Reactive Planning

53. Minimum Distribution Rules
Designated Beneficiary Test
Five Part Test To Qualify Trust as Designated Beneficiary
(The “Heartbeat Test” )

54. Minimum Distribution Rules
Designated Beneficiary Test
(aka “The Heartbeat Test”)
Corporation?
Charity?
Estate?
Individual?
Trust?

55. Minimum Distribution Rules
Designated Beneficiary Test
(aka “The Heartbeat Test”)
No, a Trust Does NOT have a Heartbeat
The General Rule is NO, It Won’t Qualify as a Designated Beneficiary
But there’s an EXCEPTION!

56. Minimum Distribution Rules
DESIGNATED BENEFICIARY EXCEPTION FOR TRUSTS
Valid Under State Law
Individual Beneficiaries
Identifiable Beneficiaries
Trust Delivered to Administrator
Trust Irrevocable Upon Death

57. Retirement Plan Distributions
Three Ways to Qualify Revocable Trust as Designated Beneficiary
Conduit Trust
“Retention” or “Accumulation” Trust (through Protective Language)
Standalone Trusts for Beneficiaries

58. Retirement Plan Creditor Protection
Designated Beneficiary Trusts
Creditor Protection for Inherited IRAs (The Clark Decision)
Legislative Threat to Stretch-out
If Needed, Potential Stretch-out Rescue Plan Available
Contrast Proactive versus Reactive Planning

59. Providing Creditor Protection for Inherited IRAs After the Clark Decision FPA Continuing Education Conference August 14, 2015
Presented by Richard L. Randall
Attorney & Counsellor at Law,
Randall Law Offices, P.C.
(Chairman and CEO,
National Network of Estate
Planning Attorneys)

60. Inherited IRA Creditor Protection

61. Retirement Plan Creditor Protection
Plans at Work Protected By Supreme Court Decision
Protection Extended to IRAs
Inherited IRAs Under Attack

62. Retirement Plan Creditor Protection
Inherited IRAs Under Attack
The Clark Decision
Clark v. Rameker
June 2014 U.S. Supreme Court Case

63. Retirement Plan Creditor Protection
“Retirement Funds” Receive Protection
Mom’s funds were in an IRA
Question: is an INHERITED IRA a “Retirement Fund” as to an Inheritor? 63

64. Retirement Plan Creditor Protection
The Court’s Rationale:
The holder of an inherited IRA:
may never invest additional money in the account.
is required to withdraw money from the account, no matter how many years they may be from retirement
may withdraw the entire balance of the account at any time-and for any purpose-without penalty 64

65. Retirement Plan Creditor Protection
Inherited IRAs Under Attack
Solution is to Pay Distributions Into Trust
IRA Can Still Be Attacked
“School Bus” Trust Protects IRA Like Any Other Asset!

66. Retirement Plan Integration
Designated Beneficiary Trusts
Creditor Protection for Inherited IRAs (The Clark Decision)
Legislative Threat to Stretch-out
If Needed, Potential Stretch-out Rescue Plan Available
Contrast Proactive versus Reactive Planning

67. Retirement Plan Integration
Legislative Threat to Stretch-out
Two Approaches Introduced Last Year
Would Limit Tax Deferral on Inherited IRAs to Five Years over $450,000
Bi-Partisan Support!!
Likely Adoption by August
Contrast Proactive versus Reactive Planning

68. Retirement Plan Integration
Designated Beneficiary Trusts
Creditor Protection for Inherited IRAs (The Clark Decision)
Legislative Threat to Stretch-out
If Needed, Potential Stretch-out Rescue Plan Available
Contrast Proactive versus Reactive Planning

69. Retirement Plan Integration
Potential Stretch-out Rescue Plan
Increase Deferral By Creating and Naming Testamentary Charitable Trust Beneficiary of the Retirement Plan
Combine with Life Insurance Purchase to Replace Principal Contributed to Charity
Contrast Proactive versus Reactive Planning

70. NextGen Estate Planning™
17 for ‘17
Number Eight:
NextGen Estate Planning™
Contrast Proactive versus Reactive Planning

71. NextGen Estate Planning™: “Legal Zoom”, But With Your Own
17 for ‘17
NextGen Estate Planning™:
“Legal Zoom”, But With Your Own
Personal Advisors!
Contrast Proactive versus Reactive Planning

72. NextGen Estate Planning™
17 for ‘17
NextGen Estate Planning™
Minors Trusts
Training Trusteeships
Ends With Lifetime “School Bus” Trust!
Contrast Proactive versus Reactive Planning

73. Estate Planning for Digital Assets
Number Nine:
Estate Planning for Digital Assets
Contrast Proactive versus Reactive Planning

74. Estate Planning for Digital Assets
Terms of Agreement
Uniform Act
Directive Communication
Contrast Proactive versus Reactive Planning

75. Special Needs Planning
17 for ‘17
Number Ten:
Special Needs Planning
Contrast Proactive versus Reactive Planning

76. Special Needs Planning
17 for ‘17
Special Needs Planning
Lifetime Trust Needed
Essentially, a Specialized “School Bus” Trust Design
Independent Trustee Needed
Initial or Successor
ARC?
Contrast Proactive versus Reactive Planning

77. 17 for ‘17 Number Eleven: Disability Planning
Contrast Proactive versus Reactive Planning

78. Mental Disability Planning
LifeSpan Planning Process™
Personalized Definition of Disability
Private Transfer to Personally Selected Disability Trustees
Personalized Disability Instructions
When?
Who?
What?

79. The Disability Settlement Security System™
Personalized Definition of Disability WHEN?
Private Transfer to Personally Selected
Disability Trustees
WHO?
Personalized Disability Instructions WHAT?
Use of Personal Disability Panel
Transfer of Trusteeship to Successor Trustees You Selected
Use of Funds Based on Priorities You Specified

80. The Disability Settlement Security System™
Total
Control
(1040 & SS#)
Definition
(Test / Panel)
RLT
Who?
Disabled
Priorities
Who?
(co)
©LifeSpan, LLC Use by members of the National Network of Estate Planning
Attorneys by express permission and under license granted by LifeSpan, LLC. Revised May 2013.

81. 17 for ‘17 Number Twelve: Proactive Elder Law™
(Or, Why You Should Never Refer Your Client to an “Elder Law” Attorney!)
Contrast Proactive versus Reactive Planning

82. Most Elder Law “Plans” Just Don’t Work!
Elder Law Overview
Most Elder Law “Plans” Just Don’t Work!

83. What Were They Thinking?
Elder Law Overview
What Were They Thinking?
(Again!)

84. “Elder Law” Attorneys Focused on Medicaid Asset Planning
Elder Law Overview
“Elder Law” Attorneys Focused on Medicaid Asset Planning
(And Moving Toward “Times Cost of Care” Fee Model)

85. Elder Law Overview
“Elder Law” Attorneys Provide Standard “Solution” of Stripping Client of Assets After Transferring Them to Exempt Assets (Often “Medicaid Compliant” Annuities)

86. “Medicaid Compliant” Annuities
Elder Law Overview
“Medicaid Compliant” Annuities
Allow Client to Access Medicaid
Assets Not Available to Family Upon Client’s Death
Assets Not Invested By You
Under Attack Anyway!

87. Proactive Elder Law Program™: The Strategic Gift Trust
17 for ‘17
Number Thirteen:
Proactive Elder Law Program™:
The Strategic Gift Trust
Contrast Proactive versus Reactive Planning

88. Proactive Elder Law Program™
Proactive Trust Planning Can Prevent Crisis Medicaid Spend Down
“Strategic Gift” Trust
Irrevocable “School Bus” Trust With Enhanced Protective Terms to Prevent Access by Medicaid

89. Proactive Elder Law Program™
Even without the Need for Medicaid Application, Proactive Trust Planning Benefits Families
“School Bus” Protections for Beneficiaries
Passing Along Financial Wealth With Protections
Advisor team remains in place
Family can discuss and prepare proactively

90. Still Equipped for “Elder Law” Medicaid Qualification
Proactive Elder Law™
Still Equipped for “Elder Law” Medicaid Qualification
Living Trust and Strategic Gift Trust Combination Created Right From the Beginning
Client Controls Timing of Transfers to Strategic Gift Trust
Reduces Available Resources for Medicaid Qualification (Special Gift Trust Assets Are In Process of or Have Already Satisfied Ineligibility Period)
Assets are “Ready” for Application Process (This Reduces Cost and Delay)
Contrast Proactive versus Reactive Planning

91. 17 for ‘17 Number Fourteen: Life Care Planning
Contrast Proactive versus Reactive Planning

92. 17 for ‘17 Life Care Planning
Focus on Acquiring Quality Health Care for Aging Clients
Family Care Givers Supported by Elder Care Coordinator
Proactive Family Involvement Ensures Better Experience for All
Contrast Proactive versus Reactive Planning

93. 17 for ‘17 Number Fifteen: Settlement Costs
Contrast Proactive versus Reactive Planning

94. Estate Planning Overview
Estate Planning Challenges
Mental Disability
Asset Transfer Upon Death
Taxation
Personal Planning Goals

95. Estate Planning Overview
Three Step Strategy™
DEVELOP Your Plan with Counselling
Oriented Planning Partners
COMMIT Yourself and Your Family to a Continuing Maintenance and Education Program
SECURE Appropriate Assistance for You
and Your Family to Transfer Your
Wisdom Along With the Rest of Your Wealth
Every family (and every person involved) has its own strengths and weaknesses, and will have a different journey together. Question is: how do we best support you and your family?

96. Keys to Controlled Cost
Full Funding
Proactive Trustee And Beneficiary Training
Proactive Engagement Approach
Ethically, Successor Trustees Hire Assistance
Full Funding allows for streamlined transfer of assets, and sets up ability to control costs
Proactive training allows for better efficiency and increased comfort level for trustees and beneficiaries. Helps us set expectations more clearly
Allows heirs to know that cost issues have been fully explored by maker(s), and that the maker is anticipating a particular set of services at a particular price point
Recognizes that ethically, even though maker is comfortable, successors are in charge. Normally, our hiring is foregone conclusion—but that isn’t always the case—ironically especially if helpers don’t get proactive training!

97. Estate Planning Overview
Three Factors of Overall Cost
The Cost of the Documents
The Cost of Updating
(Or Failing to Update)
The Cost After Death
Transfer of Assets
Death Tax Return Preparation
In our area, there are THREE major costs. Clients tend to focus on only one—the cost of the documents (note the difference between “documents” and “planning”—Clients ask “What will you charge me for IT?”
PQ13 - I have a question for you. What’s the cost of a Living Will that doesn’t say what it’s supposed to say?
On death, two costs. The first is Transfer of Assets (that’s traditionally the probate cost) and the second is Death Tax Return Preparation, which lawyers have jealously guarded. Today, less often needed.
The costs of the document is the “tip of the iceberg.” The costs after death are often far more than the cost of the initial documents.
We’ve tried for decades to train clients not to ask the cost of IT. Finally, we gave up and said, after you ask the cost of IT, be like Paul Harvey. What we he say? What are (Advance Slide)

98. Estate Planning Overview
“The Rest” of the Fees
Trust Settlement Administration
Disability
Death
Death Tax Return Preparation
Probate Services
THE REST of the fees?
There ARE costs after death. What are they upon disability? At death?
Return required? If so, how much?
And, ESPECIALLY with a “living trust attorney” how much do they charge for probate?
Remember, most living trusts do not get and stay funded!
Optional: Show that “Our proactive fee agreement covers each of these items!”

99. Estate Planning Overview Fees
Traditional Probate
2 to 3%
“Standard” Living Trust Planning
1.5 to 2.5%
Lifespan Planning Process™
1 to 2%*
*Includes All Three Costs
Tried to do research for you. See Attorney Compensation Study
Statutory vs. “Reasonable Comp”
(CA vs. most)
Florida pioneered Presumed reasonable (Missouri has now followed)
Note all are measured by percentage of estate. Ours tracks that, but at lower rate. Fees spread over lifetime. We charge different amounts at different times. Allows to provide increased counselling education and customization up front, to maintain plan and build relationship with family as we build their comfort and expertise, then to provide LOWER cost at death. Show and walk through Investment Selector

100. 17 for ‘17 Number Sixteen: Enhanced Settlement
Contrast Proactive versus Reactive Planning

101. Estate Planning Overview
Three Step Strategy™
DEVELOP Your Plan with Counselling
Oriented Planning Partners
COMMIT Yourself and Your Family to a Continuing Maintenance and Education Program
SECURE Appropriate Assistance for You
and Your Family to Transfer Your
Wisdom Along With the Rest of Your Wealth
Every family (and every person involved) has its own strengths and weaknesses, and will have a different journey together. Question is: how do we best support you and your family?

102. Wealth Reception “End in Mind”
Enhanced Settlement
Death Tax Changes (Large Exemptions for Federal and Repeal of State Inheritance Tax) Are Reducing Asset Transfer Time
But the Grieving Period Remains the Same!
Enhanced Settlement Involves Intentional Decision by Client to Establish a “Financial Transition” Phase

103. Wealth Reception “End in Mind”
Enhanced Settlement
“Financial Transition” Phase Includes Financial Education Program for Beneficiaries
Avoids “Lump Sum” Distribution For Beneficiaries Who Lack Financial Discipline and/or Experience
Features Financial Advisor Value in Process!

104. Empowered Inheritance Program™
17 for ‘17
Number Seventeen:
Empowered Inheritance Program™
Contrast Proactive versus Reactive Planning

105. Wealth Reception “End in Mind”
Personal Protections, not just tax planning:
Clients Leave Assets in Lifetime Trusts (Estates of All Sizes!)
Clients Want Divorce, Creditor and Illness Protections and the Ability to Leave Instructions—a “School Bus” Trust!

106. Estate Planning Overview
Three Step Strategy™
DEVELOP Your Plan with Counselling
Oriented Planning Partners
COMMIT Yourself and Your Family to a Formal Continuing Maintenance and Education Program
SECURE Appropriate Assistance for You
and Your Family to Transfer Your
Wisdom Along With the Rest of Your Wealth

107. Estate Planning Overview
Three Types of Change An Estate Plan Faces
Changes in Your Life
Personal Situation and Financial Assets
Changes in The Law
Tax and Non-Tax (Personal Protections)
Changes Due to Learning
Earned and Learned!
 PQ12 - Let me ask you a question. What’s happened to (his or her) plan?
PQ11 - Let me ask you a question. How many of you own the exact same assets you did five years ago? And are they at the same financial institutions with the same advisors? And do they have the same value?
 Let me ask you a question. How would you know if there were changes in the law you’d need to address? How do you know there’s been a court case affecting the school bus protection, for instance? You’re totally helpless on that front, completely dependent on the lawyer, right?
 Now, let me ask you another question, can you see that the lawyer is equally helpless about changes in your personal situation? How would the lawyer know you’ve changed brokers, who’s gotten married or divorced, who’s not getting along and is now ‘on the outs’, and so forth?

108. Wealth Reception Planning™
Chairman's Corner Spring 2013
Wealth Reception Planning™
Empowered Inheritance Program™
Creation of Inherited Trust
Inherited IRA Trust (If Needed)
Decanting and Trust Protector Use to Maximize Inheritance Protections
Requires Coordination with Own Estate Planning Goals (Allows Financial Advisor to “Follow the Money!”)
2013 National Network. LLC

109. Conclusion/Recommendation
Learn About and Participate in Alternative Estate Planning Delivery System!
“Seal In” Your Assets Under Management and “Follow the Money” from NextGen to NextGen!
Have Your Clients:

110. Conclusion/Recommendation
Pursue the Three Step Strategy™
DEVELOP Your Plan with Counselling
Oriented Planning Partners
COMMIT Yourself and Your Family to a Formal Continuing Maintenance and Education Program
SECURE Appropriate Assistance for You
and Your Family to Transfer Your
Wisdom Along With the Rest of Your Wealth

111. THANK YOU FOR LISTENING!
The Next Step
Please Complete and Turn in Evaluation
Individually Explore Planning Possibilities
Register Yourself (&/or Clients!) for our Truth About Estate Planning™ Client Orientation Program or Future Advisor Continuing Education Programs
THANK YOU FOR LISTENING!