Trust Reviews For Advisors

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An in depth explaination teaching financial advisors and client about how to review Revocable Living Trusts for effectiveness

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Trust Reviews For Advisors

  1. 1. Trust Reviews for Advisors Presents: www.wilseylaw.com
  2. 2. The Revocable Living Trust Your Gateway into your Client’s Heart and Family
  3. 3. Why Review a Trust <ul><li>Trust may be inadequate </li></ul><ul><ul><li>Trust mill </li></ul></ul><ul><ul><li>Misses on key opportunities </li></ul></ul><ul><li>Trust may be stale </li></ul><ul><ul><li>71% of HNW client’s plans are older than 5 years </li></ul></ul><ul><li>Trust may not address clients unique situation </li></ul><ul><li>Trust may not have changed with the client’s life </li></ul>
  4. 4. WIFT (What’s in it for Them) <ul><li>Estate Planning is often what your clients care most about </li></ul><ul><li>They have no way of knowing whether their plan is sufficient </li></ul><ul><li>Most people think that because they have a Revocable Living Trust their family will be protected </li></ul><ul><li>Your Clients depend on you as the quarterback of their Financial Situation </li></ul>
  5. 5. WIFM (What’s in it for Me) <ul><li>Bond with your Clients </li></ul><ul><li>Gain more credibility with your clients </li></ul><ul><li>Have greater access to assets </li></ul><ul><ul><li>Get more assets under management </li></ul></ul><ul><li>Address planning issues that lead to production </li></ul><ul><ul><li>Life Insurance </li></ul></ul><ul><ul><li>Disability Insurance </li></ul></ul><ul><ul><li>Long Term Care </li></ul></ul><ul><li>Great intro into Retirement Benefit Plans </li></ul>
  6. 6. The 10 Revocable Living Trust Keys™ <ul><li>Avoid 100% of Death Probate Fees </li></ul><ul><li>Avoid 100% of Lifetime Probate Fees </li></ul><ul><li>Health Care Decisions in the Event of Incapacity </li></ul><ul><li>Protect Minor Children </li></ul><ul><li>Minimize Estate Taxes </li></ul><ul><li>Provide Asset Protection for Surviving Spouse </li></ul><ul><li>Protect against Surviving Spouse Remarriage </li></ul><ul><li>Protect Children from Losing Inheritance </li></ul><ul><li>Prevent 2 nd Estate Tax </li></ul><ul><li>Comprehensive Estate Plan </li></ul>
  7. 7. Avoid Probate <ul><li>Trust must be funded to avoid probate </li></ul><ul><li>Most Trusts are not funded completely </li></ul><ul><li>Most Trusts will not avoid probate </li></ul>
  8. 8. Why this is important <ul><li>This is a great way to ensure that you have access to all your clients assets </li></ul><ul><li>Do funding reviews </li></ul><ul><li>Look at all account statements, grant deeds, etc. </li></ul><ul><li>See if they are titled in the name of the trust </li></ul><ul><li>You will be able to capture more business </li></ul>
  9. 9. Provide for Incapacity <ul><li>Disability Trustee </li></ul><ul><ul><li>Manages trust assets in event of disability </li></ul></ul><ul><ul><li>Will often be different than Post-Death Trustee </li></ul></ul><ul><li>Wrong to determine incapacity </li></ul><ul><ul><ul><li>According to State Law </li></ul></ul></ul><ul><li>Right Way to determine incapacity </li></ul><ul><ul><ul><li>Spouse and Physician </li></ul></ul></ul><ul><ul><ul><li>Two Physicians </li></ul></ul></ul><ul><ul><ul><li>Disability Panel </li></ul></ul></ul>
  10. 10. Why this is important <ul><li>Long Term Care Insurance? </li></ul><ul><ul><li>You are 6 times more likely to become incapacitated then die in any given year </li></ul></ul><ul><ul><li>Nursing Home costs can decimate an estate </li></ul></ul><ul><ul><li>Good way to protect family </li></ul></ul>
  11. 11. Protect Minor Children <ul><li>Guardianship Nomination </li></ul><ul><ul><li>Post Death Guardians </li></ul></ul><ul><ul><li>Disability Guardians </li></ul></ul><ul><ul><li>Temporary Guardians </li></ul></ul><ul><li>Common Pot Trust </li></ul><ul><ul><li>Don’t split shares until children are a certain age </li></ul></ul><ul><ul><li>Treat children like the parents would have </li></ul></ul><ul><li>Proper Planning for Grandchildren </li></ul><ul><ul><li>GST </li></ul></ul><ul><ul><li>Trust for Grandchildren </li></ul></ul>
  12. 12. Why this is important <ul><li>Life Insurance </li></ul><ul><li>529 plans </li></ul><ul><li>Gifting Trusts for Kids </li></ul>
  13. 13. Estate Tax Reduction <ul><li>Trust will split into three parts at death of first spouse </li></ul><ul><ul><li>Survivor Trust </li></ul></ul><ul><ul><li>Bypass Trust </li></ul></ul><ul><li>Marital (QTIP) Trust </li></ul><ul><ul><li>Usually left out of equation </li></ul></ul>
  14. 14. Why this is important <ul><li>Wouldn’t this be the perfect opportunity to talk about using life insurance as an discounted way to pay the estate tax? </li></ul><ul><ul><li>Use someone else’s money to pay the estate tax </li></ul></ul><ul><ul><li>But keep control of the cash in the policy </li></ul></ul><ul><ul><ul><li>Spousal Gifting Trusts </li></ul></ul></ul>
  15. 15. Provide Asset Protection for Surviving Spouse <ul><li>QTIP and Bypass Trusts </li></ul><ul><ul><li>If properly drafted, spouse will not be able to lose assets to creditors, lawsuits, remarriage and divorce, etc. </li></ul></ul><ul><li>You can also protect the kids against a future remarriage by requiring a pre-nup or cutting off spouse entirely </li></ul>
  16. 16. Why this is important <ul><li>Wouldn’t this be a good place to talk about using a corporate trustee with the surviving spouse to assist with accounting, tax returns, etc.? </li></ul><ul><li>Retain assets </li></ul>
  17. 17. Protect against Surviving Spouse Remarriage <ul><li>Most Clients will want to protect their children in the event their spouse remarries </li></ul><ul><li>Think of trust as 2 parts </li></ul><ul><ul><li>H’s assets and W’s assets </li></ul></ul>
  18. 18. Protect Children from Losing Inheritance <ul><li>Squandering an Inheritance </li></ul><ul><li>Losing an inheritance to creditors </li></ul><ul><li>Losing an inheritance to a divorce </li></ul><ul><li>Losing an inheritance to a bankruptcy </li></ul><ul><li>Fighting with each other </li></ul>
  19. 19. Why this is important <ul><li>This is the single greatest key to establishing yourself as a different kind of advisor </li></ul><ul><li>No trust you will review will include asset protection. NONE </li></ul><ul><li>This is a great place to talk to your clients about protecting their own assets </li></ul><ul><ul><li>Spousal Gifting Trust </li></ul></ul><ul><ul><li>Asset Protection LLC </li></ul></ul><ul><ul><li>Insurance Trust </li></ul></ul>
  20. 20. Prevent the IRS from Getting a Second Estate Tax <ul><li>Generation Skipping (“Dynasty”) Planning </li></ul><ul><li>Uses GSTT Exemption to carve out trusts that are designed to pass free of estate and GST tax to future generations </li></ul><ul><li>Kids use up non-exempt assets for their use </li></ul>
  21. 21. ADVISOR ALERT <ul><li>Life Insurance is a great tool for multi-generational planning because you can leverage the GSTT Exemption </li></ul>
  22. 22. RLT is Part of Comprehensive Estate Plan <ul><li>For Wealthy Clients, RLT is never enough </li></ul><ul><ul><li>Asset Protection Planning </li></ul></ul><ul><ul><li>Charitable Planning </li></ul></ul><ul><ul><li>Life Insurance Planning </li></ul></ul><ul><ul><li>Estate Tax Planning </li></ul></ul><ul><ul><li>Foundation Planning </li></ul></ul><ul><li>These are all ways to get more assets, and generate more planning revenue </li></ul>
  23. 23. The End (Send Email if You Want Digital Copies) Questions???
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