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Comprehensive Wealth Management

Comprehensive Wealth Management. Presented By Reliance Trust Company John A. Rodgers, III. The Reliance Story. Reliance Trust Company Overview Services Products Roles Personal Trust Services Trust Transfer Program Web Site. The Reliance Story . Reliance Trust Company Overview

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Comprehensive Wealth Management

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  1. Comprehensive Wealth Management Presented By Reliance Trust Company John A. Rodgers, III

  2. The Reliance Story • Reliance Trust Company • Overview • Services • Products • Roles • Personal Trust Services • Trust Transfer Program • Web Site

  3. The Reliance Story • Reliance Trust Company • Overview • Services • Products • Roles • Trust Services Offered • Trust Transfer Program • Web Site

  4. Reliance Trust Company • Established • Headquartered in Atlanta, GA • Licensed trust company • Administrator to assets over $43 Billion

  5. Reliance Trust Company • Full menu of trust services, including • Personal trusts • Family Trusts • Revocable Trusts • Irrevocable Trusts • Life Insurance Trusts • Special Needs Trusts • Charitable Trusts • Planned Giving Annuity Trusts • Asset Retention Trust • Retirement accounts • Wealth management

  6. Reliance Trust Company • Agency/Custody services • Self trustee accounts • Third party services (Escrow Accounts)

  7. Reliance Trust Company’s Role As A Fiduciary • Trust Investment Committee (TIC) • Meets quarterly • Investment reviews ~ Do the investments satisfy the client’s objectives? • Initial • Annual • Trust Administrative Committee (TAC) • Meets quarterly • Account reviews ~ Is the account administered properly? • Initial • Annual Reliance Trust Company is held to the highest level of fiduciary responsibility.

  8. The Reliance Story • Reliance Trust company • Overview • Services • Products • Roles • Trust Services Offered • Trust Transfer Program • Web Site

  9. Trust Services Offered • Personal Trust Services • Basic Estate Planning • Living Trusts • Charitable Remainder Trusts • Life Insurance Trusts

  10. Trust Services Offered • Personal Trust Services • Basic Estate Planning • Living Trusts • Charitable Remainder Trusts • Life Insurance Trusts

  11. Personal Trust Services What is A Trust? • A legal arrangement that transfers ownership of an individual’s assets into a trust held by a third party know as the trustee for the benefit of a named person or persons • A trust created in an individual lifetime is an INTERVIVOS TRUST or Living Trust • A trust established by a will is a TESTAMENTARY TRUST

  12. Personal Trust Services Trust Benefits • Certain types of trusts can reduce or minimize federal estate taxation • Trusts can avoid the probate process • Provide for minor children or individuals with special needs

  13. Personal Trust Services How A Trust Is Created • Attorney meets with client and creates trust document • Trust document is reviewed by trustee • Document accepted or declined by trustee • Upon acceptance, trust account is established

  14. Personal Trust services Parties To A Trust • The Grantor • The person who establishes the trust • The Trustee • The person or institution holding property in a trust

  15. Personal Trust services Parties To A Trust • The Beneficiaries • The person who or organization who has any present or future beneficial interest, vested or contingent in the assets of a trust • Fiduciary • The person having duty to act primarily for another’s benefit

  16. Trust Services Offered • Personal Trust Services • Basic Estate Planning • Living Trusts • Charitable Remainder Trusts • Life Insurance Trusts

  17. Basic Estate Planning Distribution Of An Estate

  18. Basic Estate Planning How to Pay Estate Taxes • Cash • Sale of Assets • Installments • Life Insurance

  19. Basic Estate Planning Estate Taxes Reduction Techniques • Marital Deduction • Unified Credit • Gifting

  20. Trust Services Offered • Personal Trust Services • Basic Estate Planning • Living Trusts • Charitable Remainder Trusts • Life Insurance Trusts

  21. Living Trusts Benefits Of A Living Trust • Trust (Successor Trustee) Administers Assets After Grantor’s Incapacity • Trust Avoids Probate At Grantor’s Death • Provides For Management Of Assets After Grantor’s Death • Speedy Transfer Upon Death

  22. Living Trusts Features Of A Revocable Living Trust • Revocable and Amendable • Income Taxable To Grantor • Assets Included In Estate Of Grantor

  23. Trust Services Offered • Personal Trust Services • Basic Estate Planning • Living Trusts • Charitable Remainder Trusts • Life Insurance Trusts

  24. Charitable Remainder Trust Definition • A Charitable Remainder Trust (CRT) is an Irrevocable Trust that consists of a gift of property made to a Charitable Trust that generates a charitable deduction and an income stream for the donor, and, eventually, a distribution of principal to a qualified charity.

  25. Charitable Remainder Trust When Is A CRT Used? • You own highly appreciated assets • The assets generate low income yield • You wish to endow a charity • You are seeking asset diversification greater income yield • You are the beneficiary of an over-funded qualified retirement plan

  26. Charitable Remainder Trust How A CRT Works • Donor creates a Charitable Remainder Trust • Attorney drafts trust document • Donor chooses a Trustee

  27. Charitable Remainder Trust • Appreciated asset is transferred to CRT • CRT is tax-exempt: No capital gains tax on sale • Trustee sells assets and invests in income-producing assets • Permits diversification, helps to manage risk

  28. Charitable Remainder Trust • Donor receives current charitable deduction • Based on fair market value of assets transferred (present value) • Can be used to offset 30% of AGI in year of transfer (50% for cash) • Any amount unused in 1st year can be carried over for next five years

  29. Charitable Remainder Trust • Donor receives income stream from CRT • Based on specific percentages of fair market value of assets in the trust (not less than 5%) • Percentage chosen by donor at creation of trust (the higher the income percentage, the lower the deduction) • Income is distributed for term of lives or years • More principal available to be invested by the trustee compared to sale outside of trust therefore more income to beneficiary

  30. Charitable Remainder Trust • Remainder transferred to charity • At the termination of the trust, assets remaining in trust are transferred to charity

  31. Charitable Remainder Trust • Income from CRT and tax savings is used to purchase life insurance through an irrevocable trust, with proceeds distributed to family at donor’s death (to replace value of assets transferred to CRT)

  32. Trust Services Offered • Personal Trust Services • Basic Estate Planning • Living Trusts • Charitable Remainder Trusts • Life Insurance Trusts

  33. Life Insurance Trust Features • Trustee owns life insurance policy • Policy proceed are excluded from estates of grantor and survivor • Gift tax implications

  34. Life Insurance Trust Advantages • Proceeds provide liquidity for estate taxes and administration costs • Proceeds are excluded from estates of grantor and spouse • Proceeds may be held in trust for benefit of children and grandchildren without additional estate taxes or generation skipping taxes

  35. Life Insurance TrustHow They Work

  36. The Reliance Story • Reliance Trust company • Overview • Services • Products • Roles • Trust Services Offered • Trust Transfer Program • Web Site

  37. Trust Transfer Program • Complete program to gather assets in Bank Trust Departments • Marketing plan • Marketing material • Flow chart • Procedures • Asset retainer • Build relations across multiple generations • Reliance Trust Company listed as successor trustee

  38. The Reliance Story • Reliance Trust company • Overview • Services • Products • Roles • Trust Services Offered • Trust Transfer Program • Web Site • www.relico.com/CIC

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