1 / 41

Fiduciary Practice Value-Added 21 st Century Services Special Needs Alliance October 19,2002

Fiduciary Practice Value-Added 21 st Century Services Special Needs Alliance October 19,2002. Charlie Robinson Florida Bar Board Certified Elder Law Attorney Clearwater, FL www.Charlie-Robinson.com. Trends in Estate Planning Practice. John Langbein, Yale 1989 Trusts and Estates

Download Presentation

Fiduciary Practice Value-Added 21 st Century Services Special Needs Alliance October 19,2002

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.


Presentation Transcript

  1. Fiduciary PracticeValue-Added 21st Century Services Special Needs Alliance October 19,2002 Charlie Robinson Florida Bar Board Certified Elder Law Attorney Clearwater, FL www.Charlie-Robinson.com

  2. © 2002 Charles F. Robinson

  3. © 2002 Charles F. Robinson

  4. Trends in Estate Planning Practice John Langbein, Yale 1989 Trusts and Estates • Atrophy of traditional trust and estate practice • Probate avoidance (joint ownership, living trust, pension/IRA wealth transport • Less prominence for trust and estate practice • Predicted MDP/Ancillary services for T&E lawyers © 2002 Charles F. Robinson

  5. Effect of “Death Tax” Repeal Good news, bad news- Jonathon Blattmachr • Good news- basis issues • Bad news- Canada experience • 90% practice reduction © 2002 Charles F. Robinson

  6. Get Out of Commodity Practice “How much do you charge for a trust?” Commodities better faster cheaper Hi volume – Low overhead © 2002 Charles F. Robinson

  7. May need to learn new act © 2002 Charles F. Robinson

  8. How Do Unrepresented, Inexperienced Fiduciaries Perform? • QIT experience • Life tenant vs. remainderpersons © 2002 Charles F. Robinson

  9. ABA RPPTL Task Force 1998 On Attorneys Acting as Fiduciaries When ethical to serve • Client request • Full disclosure of possible conflicts • Attorney Fiduciary bonded/insured • Third party custodian for assets • Competent to handle fiduciary services • Sufficient back office support • No exculpatory clauses in document • In-house capability or hire investment advisor • Willing to work closely with beneficiaries © 2002 Charles F. Robinson

  10. ACTEC Guide for Fellow/Trustees December 2000 Issues to deal with © 2002 Charles F. Robinson

  11. What does it take? • Painstaking attention to detail • Dogged emphasis on the safety of the financial assets • Prudent and appropriate effort to maintain and enhance the investment value of the portfolio • Awareness and management of continuing cycles of deadlines • Adequate maintenance of communications with beneficiaries © 2002 Charles F. Robinson

  12. The Successor Trustee-Ground ZeroTests to determine when a fiduciary needs competent legal advice • Elevator rule to explain trust terms • Life beneficiary? • Calculate income? • When you may have to distribute principal for under productive? • Determine principal distribution standards? • Identify remainder beneficiaries © 2002 Charles F. Robinson

  13. Fiduciary Tests continued • Explain Principal and Income Act • Receipt principal, income or both? • Expense principal, income or both? • Brokerage statement = accounting? • Who is entitled to accounting copies? • Do you understand Prudent Investor standards? • Do you understand basis calculations and tax return requirements? © 2002 Charles F. Robinson

  14. Ideal Settings for Elder Law Attorney Fiduciaries © 2002 Charles F. Robinson

  15. Trusts Under Corporate Fiduciary Radar Screen • Where to get fiduciary services under $1,000,000 • Elective share in Florida and other augmented estate jurisdictions © 2002 Charles F. Robinson

  16. Compete for Trusts over $1,000,000 Service to replace Estate Tax Planning in our Repertoire © 2002 Charles F. Robinson

  17. Play to Strengths for SNTs & QITs • Heart of Elder Law Attorney expertise • SSI rules challenge fiduciaries • We draft these documents; we need to know how they work © 2002 Charles F. Robinson

  18. Fiduciary Services • Handled by lawyers in Boston area © 2002 Charles F. Robinson

  19. Look to technology for back office support, not more people • On-line banking (United Trust) • Accounting software © 2002 Charles F. Robinson

  20. © 2002 Charles F. Robinson

  21. United Trust Company How Can We Help Your Practice?

  22. The law firm’s back office • Founded in 1993 • Affiliated with EPW Investment Management • Over $700 million in deposits for over 300 clients

  23. Custody Services • Safekeeping services • Collecting of investment income and distribution of funds, as directed • Executing trades in your portfolio, as directed • Periodic transaction statements with list of assets reflecting cost basis and market value • Automated daily cash management

  24. United Trust On-Line • Direct on-line link • Real- time trust data processing system • Designed to provide law firms back office support © 2002 Charles F. Robinson

  25. Services • Dividend, interest and other income items are posted immediately • Disbursements are entered by the firm • Automatic check requests eliminates the need to write checks • Automated cash management • Daily reconciliation of accounts • Account values immediately without • gathering information from various sources • having to research current values or balances © 2002 Charles F. Robinson

  26. Services • Marketable securities held by appropriate securities depositories or at the Federal Reserve • Monthly statements on the account • Accountings are prepared for the beneficiaries and the court © 2002 Charles F. Robinson

  27. Advantage to YOUR office • Training and office support • Medallion stamp for documents • Daily pick up and delivery © 2002 Charles F. Robinson

  28. Additional Services • Discount brokerage services • Investment management and advisory services • Portfolio reviews • Cash needs analysis © 2002 Charles F. Robinson

  29. Fiduciary Services TRUSTS ARE US Marketing to your clients • Seminars • www • Newsletters • Personal letters © 2002 Charles F. Robinson

  30. Fiduciary College How to be a successful fiduciary Hire your attorney as trusted advisor • Make attorney the fiduciary © 2002 Charles F. Robinson

  31. Overview • Introduction • What is a Fiduciary • Why is this so important? • Investments • Fiduciary as a Prudent Investor • Accounting • Principal and Income © 2002 Charles F. Robinson

  32. Attorney Tax Advisor Investment Advisor Fiduciary © 2002 Charles F. Robinson

  33. Prudent Investor Rule © 2002 Charles F. Robinson

  34. Total Portfolio Overall Investments Risk Return Objectives Suitable to Trust Delegation of Responsibility Liability After Delegation Prudent InvestorRequirements © 2002 Charles F. Robinson

  35. Principal & Income © 2002 Charles F. Robinson

  36. Principal Capital Gains Tax Principal Portion of Debts Investment Expense 1/2 Principal 1/2 Income Attorney Fees Accounting Fees Distributions Income Ordinary Repairs Real Estate Tax Utilities © 2002 Charles F. Robinson

  37. Principal Capital Gains Sale of Principal Assets Royalties Receipts Income Cash Dividends Interest Receivable Business Profits © 2002 Charles F. Robinson

  38. Elder Law Attorneys • Have plenty of cases with need for fiduciary assistance • Opportunity to change relationship from • Transactional to • Institutional • Doing well by doing good © 2002 Charles F. Robinson

  39. © 2002 Charles F. Robinson

  40. Visit our Web Site www.Charlie-Robinson.com Or Email Comments to Elderlaw@Charlie-Robinson.com © 2002 Charles F. Robinson Presentation graphics by Wendy

More Related