Presentation by Attorney Leslie Yarnes Sugai at the Professional Fiduciary Accociation of CA, May 2011

1. How to use an Attorney Effectively in a Trust Administration Matter 16th Annual PFAC Annual Educational Conference May 4-7, 2011 Hyatt, Monterey 750 University Avenue Suite 140 Los Gatos, CA 95032 (408) 354-0200 www.css-lawfirm.com Leslie Yarnes Sugai

2. 2 Introduction Expectation of the General Public Expectation of the Court Goal Impact of Beginning Professionals versus Experienced Professionals

3. 3 Case Evaluation Attorney to review Trust, Case File and Background Attorney to petition for instructions for clarification of role Determine your role and duties as Trustee

4. 4 Trust Administration First Steps: Notice By Trustee – Attorney Notice List Heir search vs. Private Investigator Bond

5. 5 Marshaling Assets General Issues Expectation – PPF to handle Attorney’s role is minimal PPF should provide asset information to attorney

6. 6 Marshaling Assets Court Supervised May be required to file Inventory & Appraisal Utilize Probate Referee for Appraisal Process

7. 7 Marshaling Assets Non-Court Supervised PPF to appraise assets as of date of appointment or date of death (if applicable) Establishes carrying value of assets May not represent income tax basis of asset

8. 8 Marshaling Assets Attorney’s Role Legal document preparation PPF to drive process, provide attorney with information

9. 9 Real Property Issues Attorney’s Role Notification to County Assessor Preparation of Property Tax Documents Affidavit of Death or other Deed to clear title

10. 10 Real Property Issues PPF’s Role Physical Control of the Property Change locks Notify Tenants of change Maintenance Issues Landlord – Tenant issues – may need attorney

11. 11 Real Property Issues Sales of Property Attorney to review listing agreement, contract NPA to be sent by attorney

12. 12 Debts and Creditor Issues PPF to obtain control of mail Credit report for Decedent PPF to pay expenses unless insolvent Discuss Notice to Creditors with Attorney

13. 13 Accountings - Court Supervised Must have agreement regarding accounting Court Format with all required Schedules Original Statements

14. 14 Accountings – Non-Court Supervised Must have agreement regarding accounting Court Approval Desired? Discuss format with attorney Style Choices

15. 15 Tax Issues Consult with Attorney/CPA regarding Income taxes Sale Issues – CG, Property Tax, future ET EIN File Taxes – PPF responsibility

16. 16 Litigation In litigation matters, fees for all parties are expected to be higher Depends on PPF’s role – are you a party or the neutral?

17. 17 Distribution No Distribution without Attorney Approval Duties to treat all beneficiaries equally

18. 18 Distribution Schedule of Distribution Retention of Reserve Timing for Distribution of Reserve

19. 19 Distribution Options Distribution – In-kind Distribution following Sale of Assets Tax issues

20. 20 Attorneys’ Expectations from Professional Fiduciary Clients Less work, less handholding and less explanation required for PPF clients Cases may be more complex, may require more complex legal reasoning

21. 21 Checklist

22. 22 Clear Guidelines Meet with your attorney up-front Set forth parameters of who will take care of what task