1. 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

2. 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!

3. 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Ⓡ

4. 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.

5. 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

6. 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.”

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

8. 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 Use by National Network members
by express permission and under license granted by GPS, LLC.

9. 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”

10. 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

11. 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

12. 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

13. 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

14. 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)

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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 ( /Phone Calls)
Personalization Checklists from Client
Design Templates
Contrast Proactive versus Reactive Planning
Provide Blog Article ”For Later Review”

21. 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!

22. 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)

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

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

25. 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

26. 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!

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

28. 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

29. 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)

30. 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!

31. 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!

32. 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”