We are dedicated to serving families, individuals, and their trusted partners by providing expertise across all aspects of trust and estate services.
Trust Administration
The trust administration role is crucial for executing your wishes regarding the use of trust assets. The trustee follows your directions and guidelines, interpreting the trust document’s language, considering input from family members, and adhering to applicable state trust codes.
What to expect when working with us:
Access to the knowledge of our client facing and experienced trust administration team, responsible for performing the following functions:
- Ensure that the terms of the trust are followed, including making distributions to beneficiaries as specified in the trust agreement
- Performs a thoughtful and unbiased exercise of distribution discretion
- Serve as a liaison between the parties à advisor, grantor, beneficiaries
- Ensures that the trust complies with all applicable state and federal laws
- Often act as neutral intermediates ready to resolve disputes in difficult familial relationship dynamics
- Regularly reviews the full trust document(s) for compliance with fiduciary laws and regulations
- Manage the filing of tax returns, maintenance of account records, and documentation of financial transactions (including IRS Forms 1099 and Schedule D to track and report all taxable income and deductible expenses and IRS Forms 1041, of other applicable tax returns for a trust and K-1s for taxable income and deductible expenses for trust beneficiaries)
About our Delegated Investment Management Model
- PTC partners with the client’s preferred financial advisor, who is responsible for managing the investments in the trust, enabling advisors working with us to stay at the center of their client’s relationships
- PTC supports financial advisors through investment oversight, and is responsible for the following functions:
- Ensure that investments are made in accordance with the terms of the trust agreement, the investment policy statement, and fiduciary standards
- Conduct regular reviews of the asset allocation strategy and compliance reports that we then share with advisors
- Monitor illiquid and other non-traditional assets held within the trust to ensure their effective management and compliance against all relevant standards
Estate Settlement
We are committed to delivering administrative trust and probate estate settlement services in a seamless manner—helping clients maintain and strengthen their financial picture and transfer assets at death to the ones who mean the most.
The ESTATE process shows you some of the details and complexity involved in a clear, understandable manner so there are no misunderstandings. A brief summary of the steps:
E—Evaluate. We review the documents and assets involved to assess the task.
S—Set Expectations. Upon acceptance, we define the process, steps, and timing.
T—Team. We assemble the right team of professionals to get the job done.
A—Assets. We create a detailed inventory of all the assets and liabilities and obtain valuations and appraisals, as well as manage and safeguard the assets and handle any creditor issues.
T—Tax. We ensure that all the appropriate trust tax reporting is done, money saving elections are completed, and payments are made.
E—Execute. We carry out the administration of the trust or probate estate in accordance with its terms and all applicable laws.
The following items are needed to start the Estate Settlement process:
- Death Certificate (original copy)
- Fully executed Will and Trust document
- Family contact information
- Beneficiary contact information
- Statement of assets and liabilities with values and copies of statements
- If there is probate, the executor’s letter of appointment and contact information
- Estate Attorney contact information
- Estate Accountant contact information
- Confidential Client Questionnaire
INSIGHTS, ARTICLES & CASE STUDIES
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10 Questions to Help Families Prepare for a Wealth Transfer
Wealth transfer is more than just a financial transaction; it’s an opportunity for families to pass on their values, wisdom, and a legacy of love. Navigating this process requires careful consideration, open communication, and a shared commitment to preserving family unity. Here are ten essential questions that families may ask themselves as they embark on the journey of wealth transfer. 1. What Values Define Our Family? Before diving into the specifics of transferring assets, it’s crucial to identify and articulate the values that define your family. What principles and beliefs have shaped your family’s identity—a commitment to charity or public service? Inclusion of others? Promoting animal welfare or an environmentally friendly lifestyle? Understanding what values are most important to your family may help you provide a framework to align the wealth transfer process with what matters most. 2. How Could Wealth Be a Force for Good? Consider the impact your wealth may have beyond your immediate family. Discussing philanthropy, social responsibility, and community engagement with those in your line of succession may work to ensure that wealth becomes a force for positive change. What charitable causes align with your family’s values, and how could your wealth contribute to a better world? 3. Are We Openly Communicating About Wealth? Open communication is the cornerstone of a successful wealth transfer. Are family members comfortable discussing financial matters openly? If not, it may take some practice. By working on creating a culture of transparency, you may foster trust and understanding, which could pave the way for a smoother wealth transfer process. 4. What Are Our Individual and Collective Goals? Individual values are just as important as family-defining ones. Ask your family members to share their individual goals and aspirations. By understanding these personal ambitions, you may help tailor the wealth transfer plan to accommodate others’ dreams while ensuring collective goals may still be honored. 5. How Might We Educate Future Generations? With financial literacy declining, wealth education is a powerful tool for empowering future generations. How could you encourage financial literacy, responsibility, and a sense of stewardship in your heirs? Consider establishing programs or resources to educate family members about managing wealth wisely. 6. What Structures Might Preserve Our Legacy? Discussing the legal and financial structures that could support your wealth transfer plan is essential. Trusts, family foundations, or other vehicles may help preserve and distribute assets according to your wishes. To what extent do you wish to maintain control over assets after you pass away? Seeking professional advice may be invaluable in creating a robust legacy plan. 7. How Do We Handle Differences and Conflicts? No family is free from potential conflicts, especially regarding money. Proactively addressing these issues is crucial for maintaining family harmony during the wealth transfer process. By establishing a conflict resolution plan and promoting empathy, you may be better able to navigate challenging situations. 8. Are We Prioritizing Health and Well-Being? Wealth transfer should never come at the expense of your family relationships or individual well-being. Discuss how the wealth transfer process may support, rather than hinder, the health and happiness of family members, and build in safeguards and stopgaps that may prevent conflict before it occurs. 9. How Could We Embrace Change and Adaptability? Flexibility is key in any wealth transfer plan. Acknowledge that circumstances, goals, and family dynamics may change over time. It’s important to regularly revisit and update your plan to ensure it still aligns with your family’s needs. 10. What Stories Do We Want to Tell? Your family’s legacy is more than just numbers on a balance sheet. What stories, values, and traditions do you want to pass down through the generations? Reflect on the meaning you wish for your family’s wealth transfer to have and how it may inspire future heirs. Important Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #516318-02
An Estate Planning Guide for Beginners
Estate planning is a comprehensive process that involves organizing your assets and making informed decisions concerning how your wealth will be handled before and after death. It is a critical phase of wealth management, essential for anyone seeking to manage their assets and efficiently pass them to heirs. In this article, we examine the crucial components of an estate plan, how to begin, who can help you develop an estate plan, mistakes to avoid, and how to mitigate them. The components of an estate plan Generally, the underlying components of estate planning are wills, trusts, and powers of attorney documents: Wills A will is the cornerstone of any estate plan. It allows you to clearly express your wishes concerning the distribution of your wealth and assets. In your will, you can appoint executors to carry out specific instructions regarding your assets, designate guardians for minor children, and establish arrangements for their financial support. Trusts Trusts, another core element in estate planning, offer a range of benefits. They can aid in reducing estate taxes, safeguarding your privacy, and ensuring that your assets are managed according to your guidelines. Trusts come in many forms, including revocable and irrevocable trusts, charitable giving trusts, and special needs trusts—each with a unique set of advantages and functions: Revocable trust – This type of trust may be altered as often as desired during a grantor’s living years. Irrevocable trust – This type of trust cannot be altered, amended, or revoked. Charitable remainder trust (CRT) – A charitable remainder trust is designed to benefit a non-profit beneficiary. Funding this trust with appreciated assets enables donors to sell the assets without incurring capital gains tax. CRTs are irrevocable and cannot be modified or terminated without the beneficiary’s permission. Special needs trust – A special needs trust enables a physically or mentally ill person or someone chronically disabled to access funding without impacting their eligibility for public assistance. There are other types of trusts; your legal professional can help you determine which type is appropriate for your situation and goals of passing assets. Powers of attorney (POA) A POA is an important legal instrument that becomes effective when incapacitated and can also be employed for your benefit during travel or absence. Through a power of attorney, you assign another individual—the attorney-in-fact—to act on your behalf in financial or healthcare matters. Depending on the specifics of the document, this designated individual can pay your bills, manage your investments, or make important healthcare decisions for you. In addition to the elemental components such as wills, trusts, and powers of attorney, estate planning can also encompass life insurance policies, retirement plans, tax planning, health care directives, financial directives, and even funeral preparations. All these elements work together to ensure that your wealth transfers seamlessly, taxes are managed, and your final wishes are respected and carried out as you intend. How to begin estate planning Although estate planning may seem complicated, the process becomes much more manageable when broken down into individual components. The more prepared you are, the more straightforward the estate planning process will be. Here are some tips to begin the estate planning process: Tip #1 – Take an inventory: The first step is inventorying your assets and liabilities, including everything from real estate to bank accounts to digital assets like cryptocurrency. Gathering investment statements, life insurance policies, information on real estate holdings, business information, if applicable, and anything else regarding your wealth is essential. Tip #2 – Consider beneficiaries: is crucial to sit down and think carefully about your beneficiaries, whom you want to distribute your assets after your death, and any special provisions you’d like to make for individuals with special needs or for charitable causes. Tip #3 – Work with professionals: You must include financial, legal, and tax professionals in estate planning. These individuals will consider your assets, wishes, tax consequences, and more so that your estate passes according to your wishes. Tip #4 – Decide on a Trustee(s): You will also need to appoint trustworthy individuals to fulfill your wishes as laid out in your estate plan. These could be a trusted friend, a family member, or a professional from a corporate trustee or executor services company. Who can help with your estate plan? It would be best to work with professionals specializing in estate planning. These professionals can help you avoid common pitfalls, address complex issues, and devise an estate plan for your needs and objectives. Here are the professionals who are vital in preparing a comprehensive and appropriate estate plan for your situation: Financial professional: A financial professional can help you prepare your assets for your estate and update beneficiary information per your estate plan. They may also help you determine which assets are for what purpose. Legal professional: A legal professional is vital to helping you draft your estate plan documents. They will help you consider the appropriate trust type for your situation, if applicable, helping you weigh the pros and cons of each so you can make an informed decision. Tax professional: Taxes are a significant consideration since taxes may apply to heirs depending on where they live and where the deceased lived. While there may not be federal taxes on the estate, state taxes may apply, or heirs may have a tax consequence. A tax professional can help prepare a plan to pay taxes from the estate, making the inheritance tax-free for heirs. Mistakes to avoid and how to mitigate them Estate planning is more than just drafting an estate document; it must consider taxes, heirs, and assets and efficiently execute your legacy. Your plan must incorporate planning for today and the future, regular updating, and attention to detail. While estate planning can be proactive, here are some mistakes to avoid and how to mitigate them so the process goes as smoothly as possible. MistakeDescriptionHow to Mitigate Failing to have an estate planWhen there is no estate plan, probate, a sometimes lengthy process, can impede the efficient passing of assets. The court system takes over the assets and determines who should inherit what assets.Begin with a simple will, update beneficiaries on your investment accounts and life insurance policies, and name an executor of your estate.Listing only some assetsWhen you fail to list all your assets in your will or estate plan, disputes among heirs or potential loss may occur. Remember, intellectual property or online accounts such as social media are considered digital personal assets.Keep an updated and comprehensive list of all assets and online accounts. It’s a good idea to review your list yearly. Note that social media accounts can only be closed with a legal directive signed before death and a death certificate. Include your social media directive as part of your estate plan’s documents.Not telling anyone you have an estate planIt’s vital to inform heirs that you have an estate plan. When you don’t tell anyone, your assets will go through probate or risk the possibility that court fees will be charged to your estate from disputes between heirs.Transparency lets you share your wishes and the reasons for your decisions. If you decide to keep the details of your plan private, ensure that you inform heirs where to locate the plan once deceased so they can proceed with executing your estate.Ignoring your legacyWhile estate planning may appear to only focus on distributing wealth, that isn’t always the case. Estate planning can also be about donating to charity and leaving a legacy to improve the world.Work with financial and legal professionals to help identify charities you want to support and determine which assets you would like to donate. You can also use strategies such as donor-advised funds or form a foundation to help ensure your legacy is carried out today and after your death. Estate planning is an integral part of financial planning. It allows you to control your wealth during your lifetime, ensure it is transferred to your heirs as you wish, and mitigate the potential stress on them after your passing. You can effectively identify these goals by understanding the different components of estate planning, how to start, and which professionals can help you work toward an estate plan.
Enhancing Your Practice: The Advantages of Offering Trust Services
Incorporating trust services into your offerings can significantly enhance your ability to manage client needs effectively. Here, you’ll discover six key ways you can benefit from utilizing LPL’s Trust Services, powered by The Private Trust Company. 1. Maintaining Consistency and Continuity with Your Clients By offering trust services to your clients, you get the opportunity to manage assets across generations and ensure a seamless transition of wealth. This continuity helps in building a lasting relationship with your client’s extended family, securing a role as a trusted advisor for future generations. 2. Helping Your Clients with Trustee Duties—and Providing Greater Value Trust management involves complex responsibilities that can be daunting for clients. By working with LPL’s Trust Services’ team, you can provide crucial guidance to help avoid potential pitfalls when setting up a trust with an attorney. Through LPL’s Trust Services team you can offer to connect your clients with professional trustees, enhancing the trust’s administration and relieving family members from an often difficult and thankless job. 3. Assisting When a Family Member Isn’t a Good Choice to Be a Trustee Not all family members are suited to manage trusts, due to potential conflicts of interest or lack of financial acumen. You can step in to help select a competent trustee, thus preserving family harmony and ensuring that the trust is managed according to the settlor’s wishes. 4. Supporting a Second Spouse Without Leaving Funds Outright Trusts can be strategically used to provide for a second spouse while protecting the inheritance rights of children from previous relationships. Trusts can be structured to offer financial support to the spouse during their lifetime, with the remaining assets distributed to the children, ensuring fairness, and fulfilling your client’s objectives. 5. Providing for Children Without Disincentivizing Them A major concern for many parents is to support their children financially without curbing their motivation to succeed independently. Through incentive trusts, you can help set conditions that encourage personal development and achievement, such as educational accomplishments or career milestones before trust funds are disbursed. 6. Finding a Flexible Trustee The needs of trust beneficiaries can change over time, requiring trustees who can adapt to new circumstances and make discretionary decisions that benefit the trust. You can aid your clients in selecting a trustee who not only understands the legal and financial aspects of trust management but is also capable of adjusting strategies as needed to meet the beneficiaries’ evolving needs. Incorporating trust services into your practice not only broadens your scope of client services but also enhances your role as a comprehensive steward of your client’s financial health. By addressing specific family dynamics and long-term financial planning needs, you can significantly improve client satisfaction and retention, ultimately fostering a more robust and resilient advisory practice. Have questions? Get in touch with us. Stay connected: Follow The Private Trust Company on LinkedIn For Financial Professional Use Only Tracking #589560