The document outlines advanced estate planning strategies for advisors, including various trusts such as revocable living trusts, dynasty trusts, and spousal gifting trusts, aimed at minimizing estate taxes, avoiding probate, and protecting assets from creditors. It emphasizes the importance of thorough planning, incorporating tools like life insurance and LLCs for additional asset protection and tax efficiency. Various tips for advisors are included throughout to enhance client discussions about financial planning and asset distribution after death.

1. Advanced Estate Planning for Advisors Presents:

2. Legend TRUST Passes Non-Taxable Passes Taxable Passes with a Discounted Value Creditor Protected Trust Creditor Protected LLC Charity

3. The Revocable Living Trust More Than a Piece of Paper!!!

4. Issues Revocable Living Trusts Can (But Usually Don’t) Address Avoid Probate Provide for Incapacity Protect Minor Children Minimize Estate Taxes Provide Asset Protection for Surviving Spouse Ensure Plan is Carried Out Protect Children from Blowing Inheritance Protect Children from Creditors and Lawsuits Protect Children from Divorce Prevent Children from Fighting Dynasty Trust Planning Eliminate All Estate Taxes via a TCLAT

5. Basic Estate Plan Revocable Living Trust Pour Over Will Durable Power of Attorney Certificate of Trust Assignment of Personal Property Advanced Health Care Directive HIPPA Authorization Guardianship Nomination Personal Property Memorandum

6. Simple Revocable Living Trust Foundation of any Estate Plan Primary Purpose is Usually to Avoid Probate Grantor, Trustee, Beneficiary Funding

7. Simple Revocable Living Trust Pros Avoid Probate Cons Provide for Incapacity Protect Minor Children Minimize Estate Taxes Provide Asset Protection for Surviving Spouse Ensure Plan is Carried Out Protect Children from Blowing Inheritance Protect Children from Creditors and Lawsuits Protect Children from Divorce Prevent Children from Fighting Dynasty Trust Planning Eliminate All Estate Taxes via a TCLAT

8. Avoid Probate Trust must be funded to avoid probate

9. ADVISOR ALERT Wouldn’t offering to check your client’s financial statements to make sure they are in the name of the trust be a good way to make sure you know what all their investable assets are?

10. RLT Pour Over Will SURVIVING SPOUSE KIDS Durable Power of Attorney Health Care Directive HIPPA

11. Sophisticated Revocable Living Trust Pros Avoid Probate Provide for Incapacity Protect Minor Children Minimize Estate Taxes Provide Asset Protection for Surviving Spouse Cons Ensure Plan is Carried Out Protect Children from Blowing Inheritance Protect Children from Creditors and Lawsuits Protect Children from Divorce Prevent Children from Fighting Dynasty Trust Planning Eliminate All Estate Taxes via a TCLAT

12. Provide for Incapacity Add Disability Trustee Manages trust assets in event of disability Will usually be different than Post Death Trustee Definition of Incapacity Wrong Way According to State Law Right Way Spouse and Physician Two Physicians Disability Panel

13. ADVISOR TIP Wouldn’t this be a good place to talk about Long Term Care Insurance? You are 6 times more likely to become incapacitated then die in any given year Nursing Home costs can decimate an estate Good way to protect family

14. Protect Minor Children Guardianship Nomination Post Death Guardians Disability Guardians Temporary Guardians Common Pot Trust Don’t split shares until children are a certain age Treat children like the parents would have

15. ADVISOR TIP Wouldn’t this be a good opportunity to talk to parents of young children about life insurance to replace income?

16. Estate Tax Reduction Trust will split into three parts at death of first spouse Survivor Trust Bypass Trust Marital (QTIP) Trust

17. ADVISOR TIP Wouldn’t this be the perfect opportunity to talk about using life insurance as an discounted way to pay the estate tax? Use someone else’s money to pay the estate tax But keep control of the cash in the policy Stay tuned…

18. Provide Asset Protection for Surviving Spouse QTIP and Bypass Trusts If properly drafted, spouse will not be able to lose assets to creditors, lawsuits, remarriage and divorce, etc. You can also protect the kids against a future remarriage by requiring a pre-nup or cutting off spouse entirely

19. ADVISOR ALERT 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.?

20. RLT Pour Over Will SURVIVING SPOUSE KIDS Durable Power of Attorney Health Care Directive BYPASS MARITAL (QTIP) HIPPA

21. Protective Revocable Living Trust Pros Avoid Probate Provide for Incapacity Protect Minor Children Minimize Estate Taxes Provide Asset Protection for Surviving Spouse Ensure Plan is Carried Out Protect Children from Blowing Inheritance Protect Children from Creditors and Lawsuits Protect Children from Divorce Prevent Children from Fighting Cons Dynasty Trust Planning Eliminate All Estate Taxes via a TCLAT

22. Ensure Plan is Carried Out Do not let children be trustees of each others trust They will hate each other If they are trustee of their own trust, they can do whatever they want Family members may not be willing to take on liability of being trustee If they knew what that liability was!!! Corporate Trustee solves these problems

23. ADVISOR ALERT Talking to your clients about what will happen to their kids after they die is a great way to introduce your corporate trustee Increase your credibility Make clients plans work Keep assets

24. Protect Children from Blowing Inheritance The average trust, when received outright, is gone within 18 months Emotional problems will follow Corporate Trustee

25. ADVISOR ALERT Wouldn’t talking to your client about their child blowing an inheritance be a good time to talk about establishing a financial plan for the child?

26. Protect Children from Creditors and Lawsuits If a child does not have the power to distribute assets to themselves, they do not have the power to distribute assets to their creditors Protective Trust Corporate Trustee No Withdrawal Rights If Beneficiary Must be Trustee Use Distribution Trustee

27. ADVISOR ALERT Wouldn’t discussing children’s creditors be a good time to talk about beefing up your client’s own asset protection plan? IRAs and 401ks Life Insurance Gifting into Trusts FLLCs Etc.

28. Protect Children from Divorce If the child has the right to receive the property outright, they have the right to put it in a joint account with their spouse, and probably will do so Protective Trust Corporate Trustee Distribution Trustee

29. ADVISOR ALERT Take a look at your client’s life insurance policies, and if the beneficiary is a child outright, ask if they want the child’s spouse to be a 50% owner of that policy in the event of a divorce ILIT New Policy

30. Prevent Children from Fighting Neutral Corporate Trustee Keep the kids mad at Corporate Trustee, not at each other Never use one kid as another’s trustee Recipe for disaster Personal Property Most commonly fought over by kids Personal Property memorandum

31. ADVISOR ALERT If clients have significant personal property that they want to leave to one child or another, they may want to even out distributions with life insurance to keep the peace

32. RLT SURVIVING SPOUSE KIDS BYPASS QTIP RESIDUE CHILD #1 CHILD #2

33. Legacy Plan Pros Avoid Probate Provide for Incapacity Protect Minor Children Minimize Estate Taxes Provide Asset Protection for Surviving Spouse Ensure Plan is Carried Out Protect Children from Blowing Inheritance Protect Children from Creditors and Lawsuits Protect Children from Divorce Prevent Children from Fighting Prevent the IRS from Getting a Second Estate Tax Cons Eliminate All Estate Taxes via a TCLAT

34. Prevent the IRS from Getting a Second Estate Tax Generation Skipping (“Dynasty”) Planning Uses GSTT Exemption to carve out trusts that are designed to pass free of estate and GST tax to future generations Kids use up non-exempt assets for their use

35. ADVISOR ALERT Life Insurance is a great tool for multi-generational planning because you can leverage the GSTT Exemption

36. RLT Survivor BYPASS QTIP RESIDUE Child Exempt Child Non-Exempt Dynasty Trust

37. LLCs In Estate Planning Protect Assets and Minimize Estate Taxes

38. Revocable Living Trusts and Asset Protection Revocable Living Trusts Provide No Asset Protection prior to death of first spouse Client’s creditors can take everything away Insurance can only cover so much

39. Asset Protection LLC

40. Putting Asset Protection into Your Revocable Living Trust LLC Wyoming or Nevada Charging Order is sole remedy Phantom Income Watch Out for Fraudulent Conveyance Great Tool for Protecting Assets while keeping full control More than one LLC provides better protection

41. LLC Estate Planning Bonus Discounting All assets in LLC will receive discount when client dies Significant reduction in estate taxes Discounts Depend on assets LLC owns Depend on Operating Agreement drafting Depend on state law Planning is everything

42. Bullet Resistant, Not Bullet Proof

43. RLT Survivor BYPASS QTIP RESIDUE RLT Survivor Child Exempt Child Non-Exempt Dynasty Trust

44. THE SPOUSAL GIFTING TRUST Understanding the Ultimate Trust

45. Spousal Gifting Trust Removes Assets From Estate Protects Assets from Creditors Allows for Greater Gifting to Kids in Future Allows you to Retain Control of Assets Flexible Investment Options

46. What it is Husband Creates Trust for Wife Wife Creates Trust for Husband Watch for Reciprocal Trust Doctrine Each spouse is trustee of the other’s Trust Each spouse can use their trust for Health, Education, Maintenance and Support Each spouse is main beneficiary of the other’s Trust Passes to kids, grandkids, upon death Not to other spouse

47. How Money Gets in SGT Crummey Gifts Spouse Kids Grandkids Use $1,000,000 exemption 5 and 5 rule Funds with at least $240,000 Have Trust Purchase Property

48. Results (10% growth) $6,948,227.60 $17,370,569.00 $96,000.00 5 30 $2,419,296.00 $6,048,240.00 $96,000.00 5 20 $673,196.80 $1,682,992.00 $96,000.00 5 10 $257,879.50 $644,699.00 $96,000.00 5 5 $42,240.00 $105,600.00 $96,000.00 5 1 Estate Tax Savings Amount in SGTs Annual Gifts made to SGTs Number of Family Members Year of SGT

49. ADVISOR ALERT Life Insurance is an excellent purchase Remember that once a trustee beneficiary dies it goes to the kids, not back to the other spouse If life insurance is used, this doesn’t matter

50. Supercharge the SGT Combine with discounts in LLC to produce amazing results Example 5 family members (spouses, three kids) $12k per year each family member 10% growth 33% discount $18k per person instead of $12k $1,500,000 exemption instead of $1,000,000

51. Results of Supercharged SGT $10,422,341 $26,055,853 $144,000 33% $96,000 5 30 $3,628,944 $9,072,360 $144,000 33% $96,000 5 20 $1,009,795.20 $2,524,488 $144,000 33% $96,000 5 10 $386,819 $967,048 $144,000 33% $96,000 5 5 $63,360 $158,400 $144,000 33% $96,000 5 1 Estate Tax Savings Total FMV of SGT Actual FMV of Gifts Discount Discounted Value of SGT Gifts # of Family Members Year Of SGT

52. RLT Survivor BYPASS QTIP RESIDUE RLT Survivor Child Exempt Child Non-Exempt Dynasty Trust Husband Wife

53. Avoid the Estate Tax Entirely Use a Testamentary Charitable Lead Annuity Trust (TCLAT) At Death Any amounts subject to estate tax go to TCLAT Estate Tax Free Zero Out the Remainder using 7520 rate Whatever’s left goes to kids tax free Results

54. TCLAT $1,000,000 that is subject to estate taxes 10% growth 20 years after death $1,687,493 to charity $1,894,941.95 to kids Plus possible foundation management fees Compare $500,000, same terms $3.3 million to kids (assuming none distributed) But $500k went to IRS No charitable legacy

55. RLT BYPASS RESIDUE RLT Child Exempt Child Non-Exempt Dynasty Trust Wyoming Close LLC Husband Wife Spousal Gifting Trusts Survivor QTIP TCLAT

56. THE END QUESTIONS???